The social management model of Western developed countries can be described as a pessimistic social management model, or it could be seen as a social management system designed by capital to prevent those below from climbing up and threatening its position.
Saying that Western social management models are pessimistic is because they view every individual in society through the lens of pessimism, leading to the design of various social welfare and security systems to ensure that everyone has care in old age and medical treatment when ill.
Upon seeing the phrases "care in old age" and "medical treatment when ill," most of us might feel that Western societies are very humane. After all, everyone fears not having money for medical treatment when sick, and everyone fears not being cared for when old.
However, let me explain further. From the moment of our birth to the present, although all of us will get sick to some extent in our lives, most of us suffer from minor illnesses that do not require much money to cure. Only a small portion of people will suffer from serious illnesses, and without sufficient funds for treatment, they may quickly succumb to their conditions.
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Regarding the issue of care in old age, in our traditional Chinese culture, this situation is not very common, as most Chinese people do take care of their parents. I am not very familiar with whether Westerners take care of their parents, but logically, they should, as there were healthy grandfathers and grandmothers in Western societies before these welfare systems were introduced.
Of course, whether in China or the West, whether in the past or the present, there will always be children who do not take care of their parents, but the proportion is not high.
At this point, some may still not understand what I am trying to say.What I actually want to say is that in Western societies, those welfare models are actually not utilized by the majority of people; only a small portion will eventually need to use them.
The Western pessimistic approach to social management culture is the mainstream for managing societies in today's world. However, this social management model, which is eagerly adopted by various countries, can lead to the economies of the world falling into one of several economic quagmires.
The biggest characteristic of this Western social management model is that the vast majority of workers in society contribute a portion of their annual earnings to various corresponding departments as special funds.
The various "funds" that social workers have to pay each year are not just for medical care and pensions; there are many other payments required, such as purchasing insurance when buying a car, buying insurance when purchasing a house, and various types of funds like this fund and that fund.
In summary, in this Western management model, workers have an endless array of funds to contribute. And these endless contributions all point in one direction, which is to weaken the funds available to workers for free disposal.
What happens when the funds available to social workers for free disposal are weakened?
1. If a worker wants to start a business, then accumulating the first pot of gold for entrepreneurship will require a longer time period. Clearly, this social management model poses a certain hindrance to individual entrepreneurship.
2. If a worker wants to consume, this undoubtedly greatly weakens his consumption capacity. The weakened consumption capacity of workers is equivalent to compressing the consumption space in society.It is evident that society's demand for workers to pay a significant portion of their income annually, which they may never use in their lifetime, can have a certain negative impact on the development of the social economy.
To address this negative impact, Western social managers have pioneered the methods of "loan entrepreneurship" and "loan consumption" to fill the gaps in entrepreneurial and consumer activities within society.
Ironically, most of the money for these loans for entrepreneurship and consumption comes from the various funds contributed by numerous social workers.
The various funds collected under different names ultimately flow into financial institutions. These institutions simply add an interest rate and lend this money to those in need of entrepreneurial and consumer loans.
I cannot judge whether this is good or bad, but this social management model has brought us infinite inflation.
It is clear that loan entrepreneurship leads to increased costs of starting a business, and increased entrepreneurial costs inevitably lead to rising prices.
Rising prices force the government to issue more currency, and the over-issuance of currency, in turn, drives prices up again.
It can be said that in today's society, the larger the scale of loans, the more severe the inflation.
After severe inflation rises, it will first backfire on the vast majority of social workers, and the amount of various funds they need to pay will inevitably increase with the rise of inflation.This is also the root cause of the continuous annual increase in various types of gold, which can be said to be an unsolvable vicious cycle.
What's more serious is that if, after inflation rises, the income of the vast number of social workers does not increase accordingly, then there will only be industrial scale without consumption.
The reason is also very simple. On the one hand, the rise in prices has already reduced the consumption capacity of the people. On the other hand, the proportion of various types of gold that people need to pay in their income increases, and the funds available for consumption decrease.
Under the effect of the two declines, the consumption capacity of the people is extremely reduced. In this case, no matter how you stimulate consumption, it is useless, because the money of the people is only so much, and they want to consume but cannot consume.
The impact of the Western pessimistic social management model on the economy is huge. If analyzed from the structure, it will reproduce nine different economic structures, and each degree is a portrayal of the economic situation of every country in the world.
After adopting the Western pessimistic social management, when the scale of social entrepreneurship and the total consumption are the same as those not adopted, it means that the cost of social entrepreneurship and consumption has increased simultaneously.
The rise in investment costs means that social prices will rise. (Disguised inflation)
The rise in consumption costs means that the total consumption capacity of society decreases. (Disguised inflation)
Inflation plus inflation is a big inflation, which is the inflation that occurs without excessive money issuance. If a large amount of money is issued at this time, the inflation will be added to the inflation.When the scale of a society's investment and consumption is less than what it would be under a natural development model without adopting the Western pessimistic social management model, it can only indicate that the adoption of this management model has led to an economic regression in the country.
When the scale of a society's investment and consumption exceeds what it would be under a natural development model with the adoption of the Western pessimistic social management model, it can only indicate that there is a continuous influx of substantial foreign capital into the country, and the income of the citizens is increasing under the influence of foreign investment.
When the scale of social investment is greater than the natural model, but the scale of consumption is less than the natural model, it is evident that this is an export-oriented economic model, primarily relying on foreign exports to maintain the expansion of its investment scale.
When the scale of social investment is less than the natural development model, but the scale of consumption is greater than the natural model, this economic structure belongs to countries that are primarily based on the export of resources or a few highly competitive products. (It should be emphasized again that such countries are often quite affluent.)
In addition to this, we can also observe why some countries have a large economic scale, but as soon as their economic exports are hindered, economic problems arise, and no matter how consumption is stimulated, it does not pick up.
To put it bluntly, the Western pessimistic social management model is a model that promotes inflation and weakens social purchasing power. The widespread adoption of this model around the world will lead to unlimited inflation in the economy and a severe suppression of social purchasing power.
Today's society is a very peculiar one, where the poor are anxious, and the rich are also anxious; the poor do not consume, and the rich do not consume either. Where does the problem lie?
In a nutshell, the Earth has adopted an economic model of unlimited inflation.
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