Glamor Economics

Chapter 157

Chapter 20 Section 2 Why is life so comfortable for the Swiss - the Welfare State

Most people who have been to Switzerland will be envious of the lakes and mountains of Switzerland and the leisurely leisure of the residents.Some people say that the Swiss don't make a lot of money, but only pursue the quality of life.Due to the relatively complete social welfare system, Swiss people, from government officials to ordinary people, live a leisurely and comfortable life.The Swiss are long past the stage of hustle and bustle creating wealth.

The social welfare system in Switzerland is quite perfect. Once a Swiss joins the workforce, the employer must set up a social insurance account for him to save for a rainy day and save his pension.Although the global economic downturn has affected Switzerland in recent years, this does not affect the motto of the Swiss that "rest is the most important right".Switzerland is a country that attaches great importance to employee welfare. The work and rest time is institutionalized. In addition to general holidays, employees are entitled to four to six weeks of paid leave every year (the length depends on age rather than seniority). No.13 is issued at the end of each year The monthly salary is the year-end bonus (provided according to the regulations and proportion during the probation period).In addition, the employer shall bear half of the employee's first and second retirement insurance premiums, unemployment insurance premiums, child allowances, work accident insurance premiums, insurance company administrative fees, etc. 13% to 15%), so each state government of each employee can give a child subsidy ranging from 100 to 260 Swiss francs (the amount stipulated by each state is different).

For a long time, Switzerland's education, medical care and pensions have been funded by the government, and most housing and insurance are also free.Statistics show that in 2006, the proportion of people receiving social assistance in Switzerland was 33‰, that is, more than 14 people received social assistance, and nearly 25 people received social assistance.Among the people receiving social assistance, children, teenagers and young people under the age of 25 account for a relatively high proportion.About 44% of those receiving social assistance hold foreign nationality, and 54.4% of them have no vocational training.

Switzerland is a typical welfare state.After the Second World War, with the continuous development and prosperity of the world economy, the degree of socialization of production has been further improved, especially the major adjustment of the industrial structure, which has triggered a major change in people's social concepts, making social insurance a major part of the world. The transition to nationalization, universalization and welfare has been realized within the scope.In order to achieve the goal of wider social equality and greater economic equality, in 1948 Britain announced that it was the first to build a welfare state.Since then, Sweden, the Netherlands, Norway, France, Italy and other countries have followed the British comprehensive welfare plan, making the social insurance system develop unprecedentedly in the world.By 1993, the number of countries implementing social insurance systems had reached 163.

Of course, high welfare is bound to be accompanied by high taxes.France is a high-welfare country and a high-tax country. Tax revenue accounts for 90% of fiscal revenue and about 50% of GDP.In terms of personal income tax, the family is the tax unit, and the income standard of the specific tax object is based on the number of family members, and the tax is levied according to the progressive tax rate.Anyone whose family or main place of residence is in France, engages in main professional activities in France, or obtains main economic income in France, regardless of whether he has French nationality or not, is required to declare personal income tax on income (including income outside France).

The social welfare system in the Nordic countries has continued to develop for many years, and today it has formed a very complete system and mechanism.This unique high-welfare system provides their citizens with "from cradle to rocking chair" guarantees: free education, high medical subsidies, and a comprehensive employment security system.It is no exaggeration to say that the residents of these countries can sit back and relax financially from birth to death.Because of this, after the economic crisis in the 20s, the "Nordic model" was widely criticized.

According to the logic of mainstream economics, "high welfare raises lazy people" seems to be an "iron law" based on "unchanged human nature".Economists believe that high welfare will definitely increase people's inertia, which is not conducive to stimulating the labor enthusiasm and innovation motivation of the people; high welfare is supported by high taxes, and high taxes must not be conducive to the development of the private sector of the national economy.

Later, due to the economic difficulties in Europe, some countries represented by Margaret Thatcher of the United Kingdom began to turn to the free market economy, constantly reforming the universal welfare system, and cutting welfare expenditures while privatizing most state-owned enterprises.In recent years, many western countries have taken measures to cut social welfare.This reflects the reform process of the Western welfare system.A scholar believes that the process of welfare reform in the West is a process of constantly breaking the big pot of welfare subsidies.

It is unrealistic for our country's current welfare reform to blindly follow the Western welfare system.The "universal security", "universal medical care", and "people's welfare" implemented by any western country are all undergoing a reform process similar to what we have experienced to break the big pot.The goal of my country's current welfare system improvement should be to concentrate welfare resources on the most needy and poorest people, rather than "sprinkling sesame seeds"; everyone is equal before the system, so that more social groups can enter the threshold of the social security system , rather than everyone getting a share from tax transfers.The current task is to establish a welfare system in line with national conditions, choose a welfare system model with a long-term mechanism, and constantly improve the prototype of the welfare system that has already begun to take shape.

[links to related words]

The welfare state is a product of specific historical conditions.Its academic explanation is that capitalist countries implement and improve a set of social welfare policies and systems by establishing and funding social public utilities, and intervene in social and economic life to adjust and ease class contradictions and ensure the normal operation of social order and economic life. A method of maintaining the interests and domination of monopoly capital.

The welfare state is a state form, and welfare is the characteristic of this state form and is used to define the state.The state form of the welfare state has prominently strengthened the social functions of the modern state, so it is a political concept, while social welfare is a sociological concept.Welfare itself is an economic concept.Economic environment is the condition and basis of national decision-making, while social welfare is the result of national decision-making.

The modern welfare system originated from the British Beveridge Report. The Beveridge Report had a huge impact on the construction of post-war British welfare society.The social welfare advocated by this report can be summarized as the "3U" idea: the principle of universality (Universality), that is, all citizens, regardless of their occupation, should be covered to prevent social risks; A unified welfare administration; the principle of uniformity (Uniformity), that is, each beneficiary receives funding according to his needs, not income status.

(End of this chapter)