(Ex) PM Rudd wrote that the GFC had sounded the death-knell for neo-liberalism – but it seems to me that he had it entirely the wrong way about. It’s the death for social democracy.
The social-democratic welfare state is broke. It was always a Ponzi scheme, and it only worked thanks to rapid population growth.
Even the (communist) Chinese are ragging out the European welfare state. Jin Liqun, the supervising chairman of China’s sovereign wealth fund, recently told Al Jazeera that:
If you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of the worn out welfare society. I think the labour laws are outdated. The labour laws induce sloth, indolence, rather than hardworking. The incentive system, is totally out of whack.
Why should, for instance, within [the] eurozone some member’s people have to work to 65, even longer, whereas in some other countries they are happily retiring at 55, languishing on the beach? This is unfair. The welfare system is good for any society to reduce the gap, to help those who happen to have disadvantages, to enjoy a good life, but a welfare society should not induce people not to work hard.
No wonder they aren’t buying BTPs (Italian Govt Bonds) …