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naldb | 4 months ago

In Spain there are half a million more people living off the government than those working in the private sector: https://theobjective.com/economia/macroeconomia/2024-09-16/a...

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ashwoods|4 months ago

I think this comment is, while factual, slightly misleading. Only around 16% of people "living off the government" are public servants, from which over 50% are for essential services like education health or public safety.

Over 50% of those "living off the government" are pensioners, so mostly coming from a pool of people who already worked (and most of them in the private sector), and paid their share in taxes. In spain, the private sector makes 70% of the active workforce, while the public sector around 13%, self employed 13%, and unemployed 10%.

I know Spain (and Europe) have quite a lot of structural problems, but I fail to see how having so many pensioners has anything to do with AI regulations.

graemep|4 months ago

If pensions come from government funds it matters if you are looking at the impact on the economy. The taxes pensioners paid have presumably been spent, so while their past contribution is an argument for their entitlement to pensions, it does not solve the problem of where the money will come from.

Its even worse in the UK where we have a special additional income tax (NI) on earned income (things like investment income are exempt), that is higher on people with low to moderate incomes, that is primarily used to pay (current) pensions (a little bit is set aside for future pensions, but there is only enough set aside for less an an year of payments).