A truly disturbing post at Zero Hedge on the welfare state which is in a slow collapse. I would like to see a similar analysis for Euro zone. Two statistics, which if true (haven’t analyzed the underlying data) should tell you how wrong things are:
- For every 1.65 employed persons in the private sector, 1 person receives welfare assistance
- For every 1.25 employed persons in the private sector, 1 person receives welfare assistance or works for the government.
So if you think of those working for the government and those receiving government assistance as riding in a cart pulled by the taxpayers (at least part of the time) that means we have a lot of riders and a declining group of pullers. Eventually, those with the most money will move their capital elsewhere, others will get tired of pulling because it looks more attractive in the cart and drop out. If that happens there is going to be a lot of suffering. Another analogy would be what happens when the vampires run out of hosts?