Social System is Undergoing a Major Overhaul
April 29, 2024
Today, it was announced, and now it is in the newspapers: our social system is not just changing, it's undergoing a significant and urgent overhaul. The proposals are now in the hands of the Parliament and are therefore public. Employers' and workers' organizations have had their say. Experts have been consulted. A national dialogue is underway.
The key changes proposed, which could have far-reaching consequences, include raising the retirement age to 67 by 2030 and gradually increasing welfare allowance to 70% of the minimum wage (which I believe will become the new minimum wage, falling below the subsistence level). There's also talk of adjusting laws and setting up a labor bureau.
The reactions I have heard mainly revolve around the costs and how to fund these changes. There is only a real connection with the economy if it addresses the mismatch in the job market. This is in the context of 70% of the population living below the poverty line, with 65% in debt (other studies even suggest 88% in debt).
It's logical to review the social system, but there needs to be more talk about what will happen to the unemployed. There needs to be a holistic approach to this wicked problem. Education, transportation, and housing are also overlooked.
Furthermore, scientific input from researchers or scientific institutions is needed. For example, Universal Basic Income (UBI) has yet to be considered. Such a system would be much more logical to implement.
I don't want to be negative, but I am deeply concerned that this will create more problems than it will solve. It's crucial to address these concerns and ensure that the proposed changes are thoroughly evaluated for their potential impact.
Miguel Goede