German tax revenue rose by 4,3% to avoid a state pensions crisis
With an inflation of around 2% and an increase of tax revenue in the first half of 2017 of 4,3%, the German government is placing a heavy burden on their citizens. Every year the average German has less money to spend, and the accounts payable of the German Federal government rise substantial every year. The reason for this is simple, the German state pension system is based on a pay as you go system. This means that the employees of today pay indirectly for the state pension of retirees. At the moment nearly a quarter of the income of a working German goes to retirees, and still this isn't covering the cost for the state pensions. It's absolute madness and it's is unsustainable.
Next month there are elections in Germany and it might be possible the Merkel era is coming to an end. It will be tough to form a new coalition government which can also implement new policies to avoid an disastrous state pension crisis.
When the German state can't pay the promised pensions and the ECB will start tapering, interest rates will rise and then the real crisis might begin as state will have no choice as to default on their bonds. Interesting times.
Well shouldn't the influx of young migrant worker's produce enough able bodies to tax? I know thwir own population is shrinking which makes it difficult for the youth to take care of a larger older population.
Uneducated immigrants who can't write or read German are gonna work and pay taxes? While their social benefits are at such a level, that what they receive in a month from the state, they won't make within a year in their home countries. Perhaps the children of the immigrants will one day become productive tax paying citizens, but the costs for their education, housing and healthcare, don't make up to the potential future benefits.
They are still capable of physical labor. If their existence in the country cannot be made mutually beneficial for the country, ts citizens and the immigrants, why let them in?
What is the goal?
The amount of jobs which requires physical labor is diminishing, machines are going to take over that jobs. And machines don't pay taxes, another incentive for corporations to invest in machines and the education of their operators, who most probably aren't immigrants.
About letting them in, that's a good question. It all began with an unilateral decision of Germany to welcome immigrants. This decision was made by Bundeskanzlerin Angela Merkel and the most likely reason why she warmly welcomed immigrants is that she was at that time not really positively in the news. Her fiscal policy towards Greece deepened the Greece Crisis, to such an extent that Greece citizens burned themselves and blaming Merkel for their misery. Therefore she took the 'mother Theresa' position of welcoming refugees by opening the gates of Europe. This shortsighted mindset has brought the EU in the position we are today. So the short answer is Merkel let the immigrants in to stay a few more years in power. But perhaps there is a greater scheme I'm not aware of. It might be that they want to blend the European population through immigration to diminish the power and sovereignty of the EU member states. It's a bit far fetched though, although with the EU socialist governance project, you'll never really know.