Schaeuble Warns Of "Revolution" If Welfare Model Threatened

Tyler Durden's picture

Over the weekend, when discussing the latest casualty of Bernanke's disastrous monetary policy, the US corporate pension plan, we touched on a topic that has been a recurring theme on these pages: "the start of the unwind of the welfare myth, if only in the private sector for now, made worse by Ben Bernanke's endless tinkering in what was formerly a free market, should be making the guardians of the status quo very, very nervous... and certainly has the disciples of the Bismarckian welfare state delusion on their toes, because they can see very well what is coming down the road." Moments ago none other than Germany's finance minister, Schrodinger Schaeuble, explained just why this observation is at the core of all modern problem, going so far as using the R-word in the context of Europe (first, and then everywhere else).

From Reuters:

German Finance Minister Wolfgang Schaeuble warned on Tuesday that failure to win the battle against youth unemployment could tear Europe apart, while abandoning the continent's welfare model in favour of tougher U.S. standards would cause "revolution".

 

Germany, along with France and Italy, backed urgent action to rescue a generation of young Europeans who fear they will not find jobs, with youth unemployment in the EU standing at nearly one in four, more than twice the adult rate.

 

"We need to be more successful in our fight against youth unemployment, otherwise we will lose the battle for Europe's unity," Schaeuble said.

 

While Germany insists on the importance of budget consolidation, Schaeuble spoke of the need to preserve Europe's welfare model.

 

If U.S. welfare standards were introduced in Europe, "we would have revolution, not tomorrow, but on the very same day," Schaeuble told a conference in Paris.

 

"We have to rescue an entire generation of young people who are scared. We have the best-educated generation and we are putting them on hold. This is not acceptable," Italian Labour minister Enrico Giovannini said.

...

"Let's be honest, there is no quick fix, there is no grand plan," said Werner Hoyer, head the European Investment Bank.

This explains why our long-running series of charts of youth unemployment has been labeled "Europe's scariest chart."

What is amusing, however, is that for Schauble it is not just abandoning the welfare state model that would promptly incite glimpses of the new coming of the French revolution: all that is needed is the adoption of "tougher US standards." Tougher?

Then perhaps a better question is how US society has been so remarkably reslient in the fact of a "recovery" that has led to job gains exclusively for the older set, those 55 and older, while the number of young workers (54 and under) employed is still down some 3 million since the arrival of Obama?

Jobs: young vs old:

And more granular, broken down by age group.

Oh well, just add more QE (because 4 years of the same one and only remaining flawed prescription to a gangrenous underlying problem are obviously not enough) and let it simmer. Eventually, it will be different.

 

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Say What Again's picture

"the same one and only remaining flawed prescription to a gangrenous underlying problem"

This is the ultimate definition of the bernank

Motorhead's picture

Herr Schäuble had better beware the reincarnation of Richard Widmark.

http://www.youtube.com/watch?v=3oesSyvh76g

 

BLOTTO's picture

Revolution? We only wished...

Motorhead's picture

Indeed.  Funny how those in power (no matter what political flavor) want to stay in power.  Bunch of slime balls.

nope-1004's picture

Central banks can't create jobs.  The only thing they can do is delay bank insolvencies and tinker with equity prices.  That's it.  And that's where their hope ends, because equity prices do NOTHING to put food on the table for the average person struggling to get through each month.

Bernanke and Greenspan, with their supposition as stated many times that "equity prices are not only highly correlated with, but can be directly attributed to, economic recovery" is why we are seeing a central bank stock market.  There is no free market because a central bank equity juicing is not fundamental recovery and job creation.  It is illusion creation.

In addition, if Bernocchio thought that his policies were so bullet proof and will provide long term solutions, then why is he retiring?  Greenspan stayed on well into his 70's.  Bernocchio is jumping ship, well aware of what lies ahead.

 

prains's picture

Trickle Down< Glitchez!

the average american worker bought the 'trickle down" theory hook line and sinker while their wages stagnated for the last thirty years, yeah they got trickle down alright, they just didn't recognize the color or the smell. The bankers last gasp to hide the fact the average american worker was not making a decent living anymore was to flood them with cheap credit but oops they couldn't even make those payments. WHY, hollowed out industrial core with an entire economy based on a consumer buying cheap chinese shit or a refi-d home based on never ending increasing valuation which really means NOBODY makes anything useful anymore, unless it's a CDS, MBS, CDO, MOMO, POMO, YOYO.

y.o.u.a.r.e.f.u.c.k.e.d.

 

ben youcantspankme knows this genie ain't going back into the bottle and what does the average american get to look forward to.

>police state drone surveillance

>private defence contractors operating outside the law

>GMO food, whatever the fuck that is

>water ??

>energy??

>jobs??

Herd Redirection Committee's picture

There was a very lucid idea, straight to the point.  American wages stagnated since 1970... But...  Standards of living were maintained or increased...  How?  Yes, Johnny in the back. "Flood them with cheap credit?"

Thats right, Johnny!  Very good!

Dark_Horse's picture

quote: "Then perhaps a better question is how US society has been so remarkably reslient in the fact of a "recovery" that has led to job gains exclusively for the older set, those 55 and older, while the number of young workers (54 and under) employed is still down some 3 million since the arrival of Obama?"

It's because the US has igadgets, xbox, free internet, porn, comfort food, eroding educational standards, and the most dominant military on the planet. 

All this and watching state after state legalize pot, and smiling as the gov't racks up more debt for future obligations.

Dark_Horse

 

SafelyGraze's picture

"We have the best-educated generation and we are putting them on hold."

enroll them in graduate school, duh.

preferably online.

the unemployed population can *always* be even more educated, and at ever-decreasing cost

TheGardener's picture

Incentives given to young Europeans are : register as unemployed for benefits and pray you don`t have to
accept a job . Jobs as in temp agency rip offs, partial,
on demand etc. with more often then not still on benefits paying the difference to a minimum living wage.

Not trying to achieve or own anything, all their mates
are losers stuck with no hope and means tested benefits
would make them loose benefits if they where to own as much
as grandma`s silver cutlet.

The eager, the educated and even solid folks in the trades
are still on and off benefits in a fractious labor market, and can not and will not OWN or inherit anything. Slaves
in the best sense of the word because nobody needs them nor
cares and the inter generational transfers are about to be
cut with bail-in`s.

IamtheREALmario's picture

Indeed, funny how those in power want the power, but not the responsibility. We need people who want the responsibility, but not the power ... unfortunately nobody listens to people who are not self-serving power-mad psychopaths.

Herd Redirection Committee's picture

How am I to compete with a guy who tells people EVERYTHING they WANT to hear?

 

RafterManFMJ's picture

Indeed.  Funny how those in power (no matter what political flavor) want to stay in power.  Bunch of slime balls.

 

LOL, you expect ANYONE to give up the good life they've stolen? It's good to be the King!

http://www.youtube.com/watch?v=StJS51d1Fzg

ACP's picture

BWAHAHHAHAHAHAA!

Revolution? Revoution requires WORK!

prains's picture

Camden, NJ

it's a town coming to you, very soon

angel_of_joy's picture

Translation of "Schlaube speak" using the BS/PC filter:

"If we stop bribing our European people with money for nothing, they'll kick us from power... maybe worse !

So, no matter what, we HAVE TO KEEP THE MOOLAH GOING !"

Meat Hammer's picture

Today's generation thinks revolution is using an extra large Sharpee for their protest signs.  They're the "someone oughta do something about this" strain of assholes.  

Herd Redirection Committee's picture

They have been lied to their entire life.

Why do you think Gandhi is held up as an example for the youth?  They want polite protests, and right now the youth still are under the impression that will work.  Youth doesn't last forever!

pine_marten's picture

Hold a sign up?!!!  Are you crazy?  You can get shot point blank in the face with a tear gas canister, maced, beat up and put on the no fly list.  Passive economic resistance is better.   Stop consuming. 

Slightly Insane's picture

It may be a while before it arrives, but it will surely arrive when the decreasing productive class say "fuck off" to the politicians and the parasite classes .... but at that point things may get just a bit heated .... and a few ropes are placed around the politicians neck, and they are led to a hole in the floor.

FlipFlop's picture

You are right. Just today wondered why did economy recover in the 1930's? Schumpeterian creative destruction or just war economy?

Should we let old structure go for something better to come, or try to preserve the old at any cost?

RafterManFMJ's picture

Wait, is he talking about welfare to the banks?

Jekyll_n_Hyde_Island's picture

Human nature is prevailing over philanthropic well-wishing, as we all knew it would.  First in Europe and then soon here -- Why get a job when the government pays you to not work?

  Checkmate.

Slightly Insane's picture

..... particularily when it interrupts your daily drinking, socializing with fellow "lazy Komrades", and the poker game and fishing ..... what's a "parasite" to do?

bentaxle's picture

How is Greece doing these days? And Cyprus for that matter? Enjoying their welfare states?

Azannoth's picture

Revolution for all practical purposes would be a good thing and just what we need right now!

And this comming from a young person who does have a (good) job.

The Juggernaut's picture

Everything will go as planned.

doomandbloom's picture

we dont need no stinking youth...when we have technology...

 

becky quick and her beautiful mouth's picture

before the welfare model and the markets & currency collapse, they should take away the public's guns.

Meat Hammer's picture

5 people and counting are /sarc challenged.

TPTB_r_TBTF's picture

.

 

An inability to understand sarcasm may be an early warning sign of brain disease.

[ Smithsonian ]

 

1C3-N1N3's picture

Nobody's junker here, but sarcasm involves saying something you don't mean. Is it a good idea to trust people who say things they don't mean?

jubber's picture

A good ole fashioned European War would reduce these numbers quite effectively

Non Passaran's picture

Syrian rebels could use some help.

jimmytorpedo's picture

The E.U. should declare war on itself.

Shoot half the youth and steal half of the wealth of the old.

Alternatively, a Logan's Run scenario also works.

Both much less messy than a revolution.

Skin666's picture

"We have the best-educated generation and we are putting them on hold."

 

For educated: read indoctrinated

Pairadimes's picture

If they were the best educated, there would already be a revolution. QED.

Shizzmoney's picture

RE

For educated: read indoctrinated

srsly

This new generation (18-35) is a fascist and neoliberal's DREAM.

We take jobs for more work and less pay and benefits, yet still tweet and facebook and walk around with smiles every single day. 

We have no savings, indebted for trillions (without recourse for default), and have had our civil liberties erode faster than me with a hard-on while seeing Margaret Thatcher's dead body in a thong.....yet no riots, no pressure put on the very government that helped create the mess (along with the corporations that bankroll them), and thousands of Occupy protestors arrested......while Jon Corzine sits on a yacht in France munching on my future.

And they STILL CAN'T EMPLOY US BECAUSE THEY WANT MORE. 

It really goes to show that for all of the "conspiracy" talk that involves our "elites" from atlernative media outlets - it really in the end is all explained by simple stupidity. 

At least pointed malice involves the basic cunning of standard intelligence.

madcows's picture

I heard a statistic on the radio this morning:  75% of the citizens polled had never heard of ANY of the current Obama scandals... whether it was AP/Fox-gate, or IRS-gate, or Benghazi-gate.  HADN'T HEARD OF ONE!  That's all you need to know about the state of our nation.

mumbo.jumbo's picture

That in itself wouldn't be a problem, *if* they neither knew who obama is, nor would they use FDR notes in their daily lives.

Shizzmoney's picture

Imagine when the next President isn't as likeable as Obama.

Then the TRUE colors of the police state come out.  Think it's bad now?  Shit ain't nuthin.

Slightly Insane's picture

Madcows;

First, they are not all citizens.  Those polled, are likely too stupid to know shit about any of those scandals.

In the town of Progressive (Communist) Chicago, even the Progressive assholes on TeeVee obviscate all truths .... to the point it's still being blamed on George, and everyone else that isn't a communist. 

Just look at what they teach in the public school system .....

FlipFlop's picture

That is sad...USA used to be the role model.

Despite all complaining by US writers here, US is still far above most European countries.

The only countries in Europe that still work are Germany and Switzerland. All tje rest have succumbed to socialist crap.

I really hope wide spread rebellion, it is the only hope.

pine_marten's picture

Hell, 75% of the public could not name the vp I'd bet...........

malikai's picture

I'm at the tail end of the new generation you speak of. Sadly, it's true. But there's more to it than just the state. Remember we have been indoctrinated with many layers of statism. Those of us who have broken free are few and far between becuase we have three generations ahead of us who know nothing more than WW2/GI Bill/FDR saved the free world, to Hippy "Enlightenment" and the festering pseudoliberalism that followed, and of course our own school indoctrination which made it clear to all of us that we are all beautiful little buttercups with our own special skills and needs.

This thing fixes itself when it all falls apart.

Panafrican Funktron Robot's picture

The issue I see is that the high education attainment people are loaded with debt and, if working, are working in the service industry.  Most of the males do not make enough money to support, or even substantively help support, a family.  Reproduction really isn't even considered for these people.  The reproduction is largely happening at the lowest rung/welfare supported, and we are just now starting to see the effects of this (will increase substantially) with the flash mobs and other social fabric problems.

americanspirit's picture

"Jon Corzine sits on a yacht in France"

Sounds like a decent target to me.

Sanksion's picture

Don't know the stats for US, but in Europe the youth are simply outnumbered. 
Those who have nothing more to lose are outnumbered. 

This single shit is making revolution impossible.  

BudFox2012's picture

They are educated as well as indoctrinated.  We have a generation of some of the finest sociologists, early hungarian historians, and basket weavers the world has ever seen.  They should have no problem finding jobs </sarcasm>