The European Union Welfare State Will Collapse Sooner or Later

european union

The current refugee/migrant crisis ravaging the EU is only the tip of the iceberg with regard to the colossus with feet of clay that is the European welfare state. Bringing in millions of people who never contributed to anything, while being a burden for the years to come on the welfare/social systems of their new home-countries is just another nail in the coffin for the EU welfare state.

As Angela Merkel used to say back in the day when she still displayed some resemblance of rationality, the EU makes for approximately 5% of the world’s population, while contributing about 25% of the world’s gross domestic product and, take a load of this: making for ~50% (fifty percent!) of global welfare spending. However, the real/actual numbers are worse: the EU is now 7.2% of world’s population, it makes for 23,8 of global GDP ( the thing is, EU population grew since Merkel’s wise words via mass illegal immigration while the GDP shrunk as a logical consequence), but the world welfare spending  ratio grew to 58%. Everything’s on the up and up in the EU, with the open borders policies and all that, right? Wrong.

Basically, the European Union in its current form is a hardcore left-wing/socialist entity on a suicidal path and something has to give sooner or later.

The thing is, the average tax burden on workers in EU countries is a whopping  44,9% meaning that the average “deplorable” in the European Union works half a year for the tax-man. 41% of the EU GDP comes from taxes. Economic freedom and ease of doing business in EU countries lags behind the leading economies of the world, because socialism doesn’t work so well and it stops working altogether when other people’s money run out.

The asphyxiating EU bureaucracy creates 80 new directives, 1200 stupid regulations and takes 700 economy-crushing decisions each year.

Despite EU’s massive tax burden and increasing regulation which hinders investment and stunts the real economy, the politicians and bureaucrats continue with their suicidal policies, confiscation of wealth via taxation and arbitrary re-distribution while making science fiction estimates regarding tax evasion and calling continuously on “taxing the rich” as a panacea.

The EU average debt/GDP ratio stands at 90% and due to uber regulation and excessive taxation,   investment, job creation and innovation are suffering. European Union countries have an average unemployment rate that’s almost 2x compared to their leading economic peers.

Moreover, we can be sure that all the recent immigration in the EU will fix these issues in a jiffy, as there’s nothing but unicorns and rainbows ahead for Europe!

Sources:

http://www.businessinsider.com/taxing-the-rich-doesnt-work-study-says-2012-11

http://ec.europa.eu/eurostat/statistics-explained/index.php/Tax_revenue_statistics

http://www.dimiter.eu/Eurlex.html

http://www.institutmolinari.org/IMG/pdf/tax-burden-eu-2016.pdf

http://www.heritage.org/index/ranking

https://ec.europa.eu/taxation_customs/business/economic-analysis-taxation/taxation-trends-eu-union_en