With a high taxation and an overbloated welfare system, the EU continues to drive nations into poverty
Democratic Senator and former Presidential candidate Bernie Sanders loves to point towards Europe as a blueprint for his Socialist Utopian agenda. Â But like nearly all collectivists, Sanders has no real understanding at all of economics and finance. Â And even taking aside the Socialist failures of both Cuba and Venezuela in helping to bring prosperity to their people, the European Union doesn’t have that great a track record in this area either.
In fact despite the trillions of euros printed by the ECB over the past four years to try to ‘stimulate’ economies on the continent, nearly every country that was in economic straits at the time of the 2008 financial crisis is either at the same level, or now much worse.
The number of Italians living in absolute poverty reached its highest level for more than ten years in 2016, according to a report from the Italian National Institute of Statistics ISTAT.
According to the agency, the number of absolute poor in Italy rose to 4.7 million last year against almost 1.7 million in 2006. The figure represents 7.9 percent of the countryâ€™s population with most of them living in southern regions.
In the south of the country, 9.8 percent of people were living in absolute poverty, compared to 7.3 percent in central areas including the capital Rome, and 6.7 percent in the north, including the business capital Milan, the report shows. –Â Russia Today
Over the past year Italy has actually slipped down from being the world’s 8th largest economy to 9th, and a large part of this comes from the Russian sanctions the EU decided to impose following the U.S.’s restrictions on the Eurasian power in 2013. Â And when you add in the central bank’s unwillingness to aid in bailing out their sovereign debt and banking system, the result is more people moving into poverty, and their banking system sitting on the edge of insolvency.
Because the media tends to only focus on France, Germany, and Britain’s economies, it is often difficult to understand how dire many economies are in the rest of the coalition. Â But a new report on taxation and welfare within the EU shows that individuals now work almost six months of the year to pay an average tax rate of 44%, while the Union’s welfare programs make up 58% of the entire world’s funded global benefits.
And these are up front reasons why large populations within the EU are in poverty, and why governments are going broke trying to sustain an ever growing system of welfare.
TheÂ European Union is:
7.2% of the World Population.
23.8% of the Worldâ€™s GDP.
58% of the Worldâ€™s Welfare Spending.
Something has to give.
The EU average tax burden on workers isÂ 44.9%. The average worker in the EU spends half a year working for the tax man.
As former Prime Minister Margaret Thatcher once said, “Socialism only works until you run out of other people’s money”. Â But what socialists rarely ever tell you is that no collectivist economy ever comes close to the productivity and growth that a capitalist one does. Â So in the end the same cycle that took place in the Soviet Union and China prior to the 1990’s, is at its end game in country’s like Cuba and Venezuela right now, and is now in full swing all across Southern Europe in the EU, shows that in full blown welfare states everyone is equal, but that equality is always one where they are all equally poor.
Kenneth Schortgen JrÂ isÂ a writer forÂ The Daily Economist,Â Secretsofthefed.com,Â Roguemoney.net, andÂ Viral Liberty, and hostsÂ the popularÂ youtube podcastÂ on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.