Wednesday, July 2, 2025

Bad Ideas from Europe 7-2-25

The World followed Free Market Capitalism since prehistoric times from 5,000BC. Ötzi, also called The Iceman, is the natural mummy of a man who lived between 3350 and 3105 BC. The Stone Age ended in 2,000 BC. Fire allowed the melting of metal to form Iron that could be formed into iron tools that replaced stone tools. Early humans negotiated to trade these tools for other goods. 

The US has followed Free Market Capitalism since the 1600s. Prices were determined by Supply and Demand.

The US is attempting to recover from its adoption of bad ideas from Europe. These bad ideas included Socialism,

Marxism and financial ruin.

Bad Ideas from Europe began with Karl Marx who published the “Communist Manifesto in 1948. Communism has been proven to create economic failure.

European Healthcare Plans

Government funding of healthcare in Europe began in the late 19th century. 

·       Germany was a pioneer, establishing the first social health insurance system in 1883 through Otto von Bismarck's reforms.

·       Initially, this system covered workers and their families, with workers contributing two-thirds of the costs and employers one-third.

·       This system gradually expanded, with the final step towards universal coverage achieved in 2007.

·       The United Kingdom introduced its comprehensive National Health Service (NHS) in 1948, guaranteeing free healthcare services.

·       Other European nations took more gradual approaches, building upon existing systems or introducing new legislation to expand coverage over time. For example, France built upon its 1928 National Health Insurance system, achieving universal coverage in 2000. Greece implemented a National Health Service in 1983. 

When did government funding of healthcare begin in Europe ?

Government funding of healthcare in Europe began in the late 19th century. Germany is widely considered the pioneer in establishing a national system of social health insurance. 

·       1883: Chancellor Otto von Bismarck introduced the Health Insurance Act, laying the foundation for a compulsory social health insurance system. This system initially covered low-income workers and certain government employees, and gradually expanded to encompass the majority of the population over the following decades.

·       Bismarck's reforms were driven by a desire to address worker unrest and counter the growing influence of socialist movements by providing social security benefits.

·       Other European nations like the United Kingdom (with the National Health Service in 1948) and France (with the expansion of statutory health insurance to various groups throughout the 20th century) followed suit, establishing comprehensive national health systems. 

While the 19th century saw the introduction of government funding for health care in Europe, the concept of universal health coverage became a more widespread goal in the 20th century, particularly after World War II, as countries sought to provide equitable access to healthcare for all citizens. 

https://www.google.com/search?q=when+did+government+funding+of+healthcare+begin+in+europe

European Pension Plans

European companies often contribute to their employees' pension plans. Here's how this generally works:

1. Occupational Pensions (Workplace Pensions):

·       Many European countries offer occupational pension schemes, also known as workplace pensions, which are often funded through a combination of employer and employee contributions.

·       These are designed to supplement state pensions, and some countries have minimum contribution requirements for employers. For example, in the UK, employers must contribute at least 3% of an employee's qualifying earnings, with the legal minimum for total contributions being 8%.

2. Types of Contributions:

·       Defined Contribution (DC) schemes: Both the employer and employee contribute to a pension account, and the retirement income depends on the investment performance.

·       Defined Benefit (DB) schemes: The retirement benefit is pre-determined based on factors like the employee's salary and length of service. Employers assume more of the risk in these schemes. 

3. Specific Examples:

·       UK: Employers are required to auto-enroll eligible employees into a workplace pension scheme and contribute a minimum percentage of their qualifying earnings.

·       Germany: The Betriebliche Altersvorsorge (bAV) is a voluntary workplace pension scheme where employers are legally required to contribute at least 15% of the employee's monthly contribution, and some companies match at a higher rate.

·       Italy: Employers are required to contribute to a pension plan, though the specific requirements can vary depending on the type of employment. 

In summary:  European companies commonly contribute to their employees' pension plans as part of the overall retirement benefits structure, which often involves a combination of state pensions and employer-sponsored occupational schemes. 

EU 2025 Revenue

For 2025, the European Union's annual budget, which represents its planned expenditure and effectively its planned revenue, is €199.4 billion in total commitments and €155.21 billion in total payments. This was agreed upon by the European Parliament and the Council of the European Union. 

Converting to USD:

Using the exchange rate information provided by Forbes Advisor, as of June 30, 2025, 1 EUR = 1.172453 USD. 

·       Total commitments in USD: €199.4 billion * 1.172453 USD/EUR ≈ 233.8 billion USD

·       Total payments in USD: €155.21 billion * 1.172453 USD/EUR ≈ 181.9 billion USD

Therefore, the estimated revenue of the EU in 2025 in USD is approximately 181.9 billion USD (based on payments), or 233.8 billion USD (based on commitments). 

Important Considerations:

·       Commitments vs. Payments: Commitments are legally binding promises to spend money on activities over several years, while payments cover the money actually paid out in a given year. Thus, the "payment" figure is likely a more accurate representation of the money flowing into the EU in 2025.

·       Exchange Rate Fluctuations: The USD equivalent is based on the current exchange rate and is subject to change throughout the year.

·       GDP vs. Revenue: It's important to distinguish between the EU's GDP and its revenue. The EU's GDP, which is the sum of the value added of all goods and services produced in the EU, is estimated to be $19.99 trillion (nominal) in 2025. This is a much larger figure than the EU's budget/revenue, which represents a small portion of the overall European economy.

·       Revenue Sources: The EU's revenue is primarily generated from contributions from member states, customs duties, a portion of VAT collected, and a contribution based on non-recycled plastic packaging waste. 

In conclusion, while the EU's 2025 budget in euro is clearly defined, the USD equivalent depends on the exchange rate and whether you are referring to commitments or payments. 

Estimating the precise total revenue of the European Union (EU) for 2025 is complex because the EU budget is financed by a variety of sources, known as "own resources," rather than a single direct tax on individuals or corporations. 

Key Revenue Sources:

·       Gross National Income (GNI)-based contributions: A proportion of each EU country's GNI, based on its wealth. This is the largest source of EU revenue.

·       Traditional own resources: Primarily customs duties on imports from outside the EU.

·       Value Added Tax (VAT)-based own resource: A small percentage of the estimated VAT collected by EU countries.

·       Plastic-based own resource: A contribution based on the amount of non-recycled plastic packaging waste in each EU country.

·       Other revenue: Including fines for breaching EU competition law, contributions from non-EU countries to certain programs, and taxes on EU staff salaries. 

Important Considerations for 2025:

·       EU Budget Balance: The EU budget is based on the principle that annual revenue must completely cover annual expenditure.

·       Potential for New Revenue Sources: The EU is currently discussing new revenue sources to diversify and reform the EU budget, potentially linked to greenhouse gas emissions or company profits.

·       NextGenerationEU: The European Commission has been raising funds on capital markets to finance the post-COVID recovery plan, NextGenerationEU, which will be repaid over a long period. 

While a precise total revenue figure in USD is not available, these points provide insight into the financial structure of the EU budget in 2025. 

https://www.google.com/search?q=what+is+the+revenue+of+the+EU

Recent Bad Ideas

Recent adoption of bad ideas began with George HW Bush’s signing on to UN Agenda 21 in 1989. Europe fully supported the “Global Warming: Scam.  The US embraced “Global Trade” under Clinton and the off-shoring of US manufacturing jobs. The US followed Europe’s lead and invited the Muslim Invasion of 2015. The US allowed lawlessness and open borders under Soros and Biden. The US misinterpreted the definition of “Free Speech” to include lawlessness. The US allowed Universities to be dominated by Marxism, Anarchy and Treason. The US Federal Government allowed excessive spending to result in a $36 trillion Debt.

Comments

It is yet to be determined how to reduce government funding of healthcare. Trump and Healthcare providers are working on this. AI and Automation will increase productivity and reduce costs wherever it is applied.

Retirement Funding relies on good investing, good decisions and dual incomes. The only retirement fund I didn’t cash in was with TIAA. When I left Washington University in 1975 my TIAA account was worth $5,800. By 2015 it was worth $90,000. Our dual income and my “Sole Proprietor” strategy allowed us to contribute $500,000 in Social Security Taxes to qualify for higher Social Security Incomes. The bulk of our net worth is from “Home Price Appreciation”. 

I don’t think that European Countries offer the majority of its citizens the retirement savings structures we have in the US. I think European Countries’ taxes are too high for citizens who are paying double taxes along with a 20% sales tax. 

Norb Leahy, Dunwoody GA Tea Party Leader

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