Economic Freedom

The Federal Republic of Germany has about 75 million inhabitants with German citizenship. Of them were eligible to vote in the recent federal election a good 62 million, the remaining 13 million were under 18 Years of age and were not therefore as yet not ripe for a federal election. Not entirely coincidentally, it is also true that – outside of the provisions of the so-called pocket money section – a person under 18 years can not enter into legally binding contracts of sale.Unlike in politics, but it follows not that children and adolescents were excluded from the commercial life by not expected to buy about ipods, laptops or Abercrombie shirts. That would be absurd. Rather, the children are legally represented by their parents. Either close the purchase contracts on behalf of their children or they consent to the first one floating invalid contracts, which the children have completed their own behalf. In this way it is ensured that children and young people themselves may represent civil law, not only a very limited or even that they are of commercial life but not yet excluded.

The Federal Republic of Germany will stand after completion of the current crisis with a debt of an estimated 80 percent of the gross domestic product even less acceptable internationally. So it seems. However, we consider that our social systems constructed after the Bismarckian principle and also comparatively very generous, so the picture changes considerably, however. For the contributory schemes the statutory pension, health care and also the work on the principle of apportionment funding. All incoming funds – professional working in the rule – contributors are paid directly to eligible retirees, and health care. The professionals earn their contributions in turn claims to payments from the three insurance companies, of which the vast majority will be due at a later stage in life. At this point, but the previous posts will have been long since spent. In order to assert their rights, it will have to be new contributors who contribute their part in the hope of future cash flows in the systems. The consequence of this we can imagine a simple picture: Suppose that there would someday one last generation of men who themselves have made for whatever reason any more offspring. This last generation would have behaved pay their contributions if they wanted their parents did not let them down. It would help them but even nothing, for the age they would be independent of their previous contributions in each case stand alone. This is immediately clear that economically there is no connection between contributions paid and future benefits from the systems. Rather, the policy uses the fictitious promise to pay a generation – if already born -. May still be no political promises, because it is not yet eligible to vote

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Categories: Coutry