Monday, February 18, 2019

Part-Time versus Full-Time: The Same?

This got up here in Germany over the weekend....as public forum chats are occurring over the SPD Party idea of remodeling the pension program. 

For those who've been watching the 'event' of the past month.....the SPD folks are trying to make a case that pensions for the minimum wage folks (those who just never rose or got ahead in life) are set to a miserably low amount of money, and need the government to come in and pull money out of plain tax revenue (not the pension tax pot), and pump up the minimum social pension monthly check. 

Most Germans will agree with the SPD premise.....the pension program has created a class of welfare retirees.  But the same group is bothered that this is just another dip into regular tax revenue, and ensures some tax increase coming down the pike.

So the topic came up this weekend.....if you worked 35 years of your life as a somewhat reduced hour's individual (say part-time), then with the SPD idea as they advertise it.....you'd make the bump-up and be paid a social pension at the same level as a guy who'd worked 40 hours a week, for 35 years.  In the fairness angle....it begs questions.

The sad thing to this whole discussion....if they'd had this back in 2010 to 2013, before the revenue pot had migration/immigration costs attached, there probably was sufficient money in the revenue pot to go and bring the minimum pension up to 900 Euro (roughly $1,100 a month).  Once you go and add the increased cost, plus the money to Turkey and Libya to 'hold back' refugees....the budget and revenue pot are pushed into a difficult position.  You could raise taxes, but there's at least five other programs that the SPD is talking about would require more money, and the taxation required....well, it's a pretty fair sum. 

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