About This Blog

Ludwig von Mises (1881-1973) was the greatest economist of my time. His greatest works can be accessed here at no charge.

Mises believed that property, freedom and peace are and should be the hallmarks of a satisfying and prosperous society. I agree. Mises proved beyond a shadow of a doubt that the prospect for general and individual prosperity is maximized, indeed, is only possible, if the principle of private property reigns supreme. What's yours is yours. What's mine is mine. When the line between yours and mine is smudged, the door to conflict opens. Without freedom (individual liberty of action) the principle of private property is neutered and the free market, which is the child of property and freedom and the mother of prosperity and satisfaction, cannot exist. Peace is the goal of a prosperous and satisfying society of free individuals, not peace which is purchased by submission to the enemies of property and freedom, but peace which results from the unyielding defense of these principles against all who challenge them.

In this blog I measure American society against the metrics of property, freedom and peace.

Thursday, January 12, 2012

Hey, Dumb Ass! Here's Why You Can't Find A Good Job!

Tax & Social Security as % of cost of employment

Yeah, I know the graph is about the European Union, not the United States! Yeah, I know it's running off the page and into the margins. Yeah, I know it's harder to understand than an episode of "Family Guy." Yeah, I know you already think it's part of some right wing conspiracy or a page from Ron Paul's campaign literature. Yeah, I know you've probably already clicked off this page and gone back to surfing the web for porn. It's why you're a dumb ass, know-it-all, closed-minded Democrat! Well, good riddance. You had to land on this page by mistake anyway.

Now, for the one or two of you who are still here, let's begin by giving proper credit where credit is due. I found this powerful and telling graph by following a link in this article by Michael Suede in the Libertarian News. That link lead me to this post by Jakab Andor.

Jakab Andor  is one angry Hungarian. He lives in a workers paradise, a European social democracy with the level of cradle-to-grave, government-provided economic and social welfare that Barack Obama dreams about.

Yes, now you're getting it! The European Union is the role model for the United States. It's where we're headed; it's where the Democrats are taking us.

Do you know what the current unemployment rate is in the European Union? Of course you don't. Well, it's 9.8%!(Assuming unemployment statistics are not understated in Europe as they are in the United States.) European unemployment has hovered between eight and nine percent since the year 2000 and probably before. I don't know for sure. The graph runs out at 2000.

Why won't Jakab Andor hire people like you in Hungary for a good job at a good salary?

I could tell you, but Jakab Andor tells it better. Here he goes:
I will only give you a job if:
  1. I can fire you, when and if I want to.
  2. If VAT goes down to at most 20%, but better yet 15%.
  3. If the state takes away "only" 30% of your money.
  4. If higher income is not exponentially punished.
  5. If the state punishes corruption instead of decent companies.
Until these things change, I won't give a job. Until the state ferrets out corruption in every possible aspect, I won't start a business, and I won't create jobs.
I told you Jakab was an angry man. Does he seem like a hateful, irrational man as well? You tell me. Here are some of the benefits the Hungarian government mandates that Jakab must pay for if he hires you:

Time Off: "The minimum number of statutory paid holidays depends on the employee's age and varies from 20 to 30 days." (Hungarian employees also enjoy 10 public holidays off in addition to the above. Also, employees who are single parents or are blind enjoy an additional two to seven days off.)

Sick Time: "Employees are entitled to 15 days' sick leave per year."

Maternity Rights: "Pregnant employees (or those having given birth) are entitled to 24 weeks' maternity leave" (during which time they are paid 70% of their average salary, and her health care is paid by the state, and the employee is entitled to an unpaid leave of absence until the child reaches three years of age, and the employee cannot be terminated until her child reaches age three, and her child care expenses are picked up by the state, and the employee is entitled to get her job back.

Paternity Rights: "Following the birth of his child, a father is entitled to five days of fully paid work time allowance."

Parental Rights: "Based on the parents' decision, the employee...is entitled to extra vacation time" ranging from two to seven days per year depending on the number and ages of the dependent children.

Notice of Termination: "When terminating the employment relationship...the notice period must be at least 30 days, but" can be extended by up to 40 days depending on the employee's years of employment.

Severance Pay: "The employee is entitled to severance pay...depending on the length of employment with the employer." Severance pay ranges from one to six month's pay depending on years of employment.

Protection Against Dismissal: "The transfer of a business itself cannot serve as a sole reason for the termination of employment. However, a reason based on or in connection with the employer's business activity (rationale) may, under certain circumstances, be acceptable. The reason for termination (for example, economic reasons connected to the employer's business) must, in all cases, be clear, real and reasonable" ("clear, real and reasonable" being defined by the bureaucrat in charge).

Pension Contributions: "The employer's statutory social security contribution is 27% of the gross salary paid. The employee's statutory social security contribution is 9.5% (social security contribution) and 7.5% (health insurance and labour market contribution) of the gross salary received. The 9.5% social security contribution is capped....

Pension Benefits: "The amount of state pension depends on the average salary of the particular employee and the overall service time. Usually the monthly amount is between 33% and 80% of the average monthly income."

Retirement Age: The old age pension in Hungary kicks in at age 62 for men and women with 20 years of service.
Does Jakab still seem like a hateful and irrational man, a greedy employer-member of the hated 1%?

Hardly. If you were in his shoes, you'd make the same choices.

Is it any wonder, considering the above list of paid benefits, that Jakab won't hire women? He won't hire men over 50 either. If you're interested in the gory details about why he won't, he provides them in his post.

Jakab would only consider hiring men between the ages of 25 and 50, but there's a catch there too...TAXES!

Now, kindly return your wandering attention to that pesky graph at the top of this post. It shows that VAT taxes and all manner of local and state taxes plus social security taxes amount to over 50% of Jacab's employment costs. In effect, this is a tax the Hungarian employer pays for hiring people.

No reason to smile, dumb ass! Jakab pays the taxes, but he takes it out of his employee's wages. Because the VAT and social security taxes are so high, you would be forced to pay over half of YOUR salary to the government. Well, it's salary you won't be earning anyway, since Jakab ain't going to hire you.

I don't know what percentage of employment costs US employers pay to the government, but it's got to be way less than half of the Hungarian rate...for the time being. But the rate's going up. And it will continue to go up the more we morph into a European welfare state by passing "entitlement" programs like ObamaCare. Maybe it also accounts for our sticky 8-9% unemployment rates.

The moral of Jakab's story is you can't have your cake and eat it too, or maybe its you can't get something for nothing. It seems a worker's paradise can exist, but only at the cost of a permanently high unemployment rate AND a sky high rate of taxation AND a soaring level of public debt AND a mercilessly inflated fiat currency AND a huge, dictatorial and corrupt bureaucracy AND a massively bloated central government that only does one thing efficiently: skim a share of your hard-earned money off the top for itself.

In short, a European social welfare democracy can only be purchased at the price of your propety AND your freedom.

You still think you'd be better off doing things their way? Allowing government bureaucrats to run your life and make all your decisions for you? Watching these corrupt, elitists bozos live high off the hog at your expense?

Go for it, dumb ass!  Just count me out.

No comments: