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Labour policies ultraliberal figures

The ultra-liberalism advocates the abolition of the state practice and therefore to a minimum reduction of taxes on labor relations, according to this current, becoming increasingly widespread among English and European right, the current policies State labor are an intervention in the markets that hurts both the employee and the employer, which would largely benefit from zero intervention policies.

that a worker can be benefited with the ultra-liberal policies is a lot to say, but let's give him the benefit of the doubt on this theory, so we're going to put to numbers, of course, if it is beneficial for all parties will start from the premise that the worker, at least, will keep their lives on the same level as other interventionist policies more .

The calculations take a salary of € 1,500 gross per month, with the 10% withholding income tax and 6% that goes to Social Security become some 1,250 € net, like Social Security There is no economic theories ultra-liberal and the state is at least 6% and 10% disappears is reduced to 1%, so the net salary of 1,485 becomes € per month. Mola, that of ultra-liberalism: on the snout, 235 € more per month to spend.

But that's not all, no. If we eliminate Social Security, the employer no longer has to pay the state the other part of my dues, which are another 30%: 450 € gross more to the worker. Go bargain. To charge € 1,250, our worker would receivable, with the application of ultra-liberal theories, € 1,930.50 a month (we have subtracted 1% of income tax to those new 450 €). An instantaneous raise € 680.50 or 54%!

Of course, this new salary will have to subtract some amounts if you want it to that worker, as happy as a lark with his new salary, maintaining levels of protection may be required now because the law provides otherwise.

begin with the severance pay, that ultra-liberal theories, of course, disappear, we will assume that the worker has made today one of the new permanent contracts and to correspond, therefore, compensation for 33 days year worked, which is 9.09% of gross monthly salary (1,500 €) or, which is, € 136.35. That amount is that the worker should be reserved in your account each month to the day he fired, could have a cushion equal to that now falls by law (remember that, as ultra-liberal theories, we all benefit from their actions), but nothing happens, it would still charging € 1794.15 (a 43.53% increase).

We will continue with the pension, which, of course, would have to be private (Social Security've charged us one step), suppose that our happy worker is 18, so even you are, as least 47 years of employment. If all goes well, you can enjoy your board (private) 20 years (assuming the life expectancy of 30 years are within the 85), so to enjoy a pension equal to your net pay (take the initial € 1,250) would need to spend € 638.30 month to their pension fund. And here are just estimates, because the salary of our worker would be left at € 1,155.85, which is € 94.15 less than that now charges 7.53% or less (which exceeds the salary reduction of 5 % officials for the crisis).

Here is a quick paragraph about pension plans, for an ultra-liberal would say that these investments are revalued over time and, therefore, the contribution would be lower, the reality, however, is very different: a pension plan can increase in value, but it can also depreciate. In fact, under present circumstances, both pension plans invested in bonds (which give interest rates below inflation) and those investing in equities (with the stock market free fall) are experiencing a continued devaluation , so the calculations would fall short and our worker would, at the end of their working lives, with a pension lower than we had expected.

However, further calculations would end up worker's salary, for example, we might ask who would pay the monthly bills of electricity, telephone, water, pension fund or mortgage of a worker on sick leave for a serious illness. Banks tend to offer insurance (about 25 € a month, so our worker's wages would fall to € 1,130.85) to cover a maximum of 12 months of payment of mortgage payments in these cases, but light, water or phone does not take anyone. The drugs are subsidized at 60% and that percentage would also leave the salary of our worker and full private medical care round the 60 € monthly, so that the salary be reduced below € 1,070.85 ...

But not only the system of health protection which we loaded with the application of ultra-liberal policies, we have lowered the income tax from 10% to 1% because the state has been in the bones and does not need much food , and that has its counterpart: the education of our children will be private and pay us in full. Our workers have to go saving you need for your child (or children) be trained, so let's make a calculation, with today's prices, which consist of education liberal (and private) school education (kindergarten) would cost about 16,000 €, basic (from 6 to 16) some 75,000 € and the secondary another 24,000 €. All bonuses working lives of our workers (180,000 €) plus those of your partner (assuming another 180,000 €) would cover the education of three children, in any case, education for each additional child (115,000 €) would be subtracted from your salary and your partner another 100 € per month each. Of course, neither we ask our children learning in college, because that would mean about 30,000 € for each child (about 30 € monthly salary of our worker and 30 € the salary of his partner.)

With these basic costs that would entail the application of ultra-liberal system is sufficient to verify that no win-win (our worker would get a minimum of 200 € less than a month without pay and bonuses), but is also We made a small trap (is that the ultra-liberals do to balance their books) in finding that the employer contributions to Social Security (450 € a month) will go to the worker's pocket, which is a very big, not because it is not unusual for the tax cuts are designed by companies to increase the wages of their workers, but they are the companies themselves are talking about reducing wages .

But is that the ultra-liberal anyway, following the orthodox economic theories, consider the rules of supply and demand throughout the remainder in a worker's wages start to be rectified by the labor market itself, so If the worker lost 200 € with the system changes, the market would eventually require the employer an equivalent increase in the wages of their workers. What does this mean? Well, if the employer now costs € 1,950 a worker (salary of 1,500 € gross over the 450 € of employer contributions to Social Security) with the application of ultra-liberal theories would force the market to allocate labor costs of 200 € would lose the employee, then supposing costs of up to 2,150 €. Thus we could say that neither workers nor employers would benefit from ultra-liberal economic system.

And the obvious question is ... if both the employer and the employee would end up losing, how is it possible that anyone still defends those theories? The answer is simple: markets have flaws, and one of them is the imbalance between the bargaining the employer and worker, as is the former that has a greater capacity to impose its conditions, the market would never regulate workers' losses, so the loser will always be the same: our first happy worker, who lost the 200 € we have calculated over the 450 € that the company would save by eliminating the employer contributions to Social Security.

Our first happy worker would see its previous checks of 1,250 € will become a real salary of 600 € with the application of ultra-liberal theories. What a bargain!