The CEOE said no to the ‘Quotation Reform’: traitors?

It is already known that the Pension Reform is going to be the Contribution Reform. Minister José Luis Escrivá had to find money to cover the hole in Social Security due to pensions or, on the contrary, lower expenses.

In the end, it has opted, as this government always does, for squeeze more of the citizen: increase prices.

In my classes with young students, I explain to them that their working lives will be long and they agree. They believe that this will be the case because there will be no money to retire them and they will work until they are 75 or older. So I counter them: it’s not true. Public pensions will not disappear because they have two components. One economic and one political.

Public pensions will not disappear because they have two components. One economic and one political.

Given the pyramid of the Spanish population, each time a working contributor supports more pensioners. That’s why the deficit is growing. It is the economic component. Precisely for this reason, one solution is to lengthen the retirement age. Then there would be more people paying contributions and fewer.

But that’s a political bad sell. As if work were a biblical curse. Also: how is a politician going to face 25% or more of the population between retirees and those who are waiting to be? How to tell them that their pension will be lowered or that they have to wait longer to collect it? Elections are played. The political reason prevails over the economic one.

However, for many people it is satisfying to contribute to society through their profession and be paid for it. The post-retirement depression syndrome it is a fact.

In addition, medicine has evolved in such a way that life expectancy in healthy conditions has increased considerably. It is said that, from the vital point of view, the 70 of now are the 60 of twenty years ago, the 60 of today, the 50 of then and so on.

So that many would like to extend their years of professional activity. But the unions and United We Can, locked in their Manichean conception of work, oppose it. A mistake. Some jobs require earlier retirement; for example, those that require physical effort. But that retirement could be combined with professional exercises of another style as long as active retirement was not as stingy as the current one, which forces you to give up 50% of the pension (Too much!).

With Sánchez you have to forget about everything that is reducing spending. He only thinks about spending and, therefore, he needs to collect whatever he can. What is not understood is why he insists on squeezing the least, when he could enter more, charging less per person and expanding the number of those who pay.

With Sánchez you have to forget about everything that is reducing spending. He only thinks of spending and, therefore, he needs to collect

The CEOE has said: the 0.6% increase in contributions (0.2% contributed by the worker and 0.4% by the company) can reduce the number of contributors due to excess salary cost. It is estimated that 30,000 fewer jobs will be created each year for this reason. In other words, what Social Security earns for squeezing those who now work, it can stop doing because others, who could, will stop contributing.

If the cost of the labor factor rises, the employer can replace it with machines Also, they are not unionized. If wage costs rise, the employer has to raise prices to compensate. So, it may be less competitive worldwide, it will not export and its foreign competitors will sell their most competitive products in Spain. Therefore, fewer jobs created.

This rise in salary costs will prime inflationand will make it more difficult for us to recover. Foreign investors who see a government that squeezes companies will stop coming thinking that it can also do so in the future, when the assets derived from their investments are installed.

For all these reasons, the CEOE has said: NO.

Now the Government and its spokesmen are going to start a campaign to discredit Spanish businessmen saying that if they go to Brussels and complain they are traitors to the country, because they make it difficult for aid from the Next Generation funds to come. Here the one who does not fold to the Sánchez-Díaz duo, or rather Díaz-Sánchez, you know: traitor. Whether or not you have reasons to call attention to and oppose government nonsense.

A few bottles of extra virgin olive oil.


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