Subtitle of this chapter: Actually, it's useless to say it

"Well said!"

Our Master Yuan made the students sitting quiet down like this, and for a while they couldn't figure out what kind of road this Chinese was. Pen × fun × Pavilion www. ｂｉｑｕｇｅ。 ｉｎｆｏ

"I agree with what Mr. Baker said! But......" Yuan Yanqian said with a puzzled look, "will nationalization allow those miners to not work hard in the dark pits at the risk of dying at any time?" ”

"This ......"

If they don't do it, will they tell the gentlemen sitting here to do it?

As a little bourgeoisie, Yuan Yanqian knew that little bourgeois was this virtue, and said that he was invincible in the world, and he couldn't do anything about it, so he just let it go.

But Louis Baker reacted immediately, saying: "Nationalization will at least allow those workers to have better working conditions, enjoy a more decent life, and be better protected after retirement and accidents." Mr. Yuan, do you object to this? ”

"Mr. Baker, of course I have no objection!" Yuan Yan didn't hesitate for a second, and immediately said: "It's just that this can completely allow the government to regulate in the form of legal provisions, why do you have to adopt a radical way?" ”

Yes, this Chinese said it well. We in the United States govern the country according to law, and we must talk about the law in everything, otherwise the lawyers from middle- and upper-class families will drink the northwest wind?

But "this Chinese" is a neoclassical liberal master, and even the use of laws to regulate the behavior of capitalists is a forced expediency for him.

So our Master Yuan continued to add: "Mining workers in the United States...... No, can everyone, even all of you, leave their pensions and social security to the free market? ”

Louis Baker couldn't help but ask curiously, "Mr. Yuan, what do you mean by that?" ”

Yuan Yanqian smiled slightly: "Bismarck, the iron-blooded chancellor of Germany, once said that social insurance is the best investment to eliminate the revolution, because a person who expects a pension is the most obedient and the easiest to rule......"

At this time, a student suddenly stood up and asked loudly: "Mr. Yuan, do you want the United States to learn from the pension insurance systems of European countries?" ”

In fact, the modern pension insurance system was born in 1889 under the leadership of the Bismarck government, and later Denmark, Britain, Sweden and other European countries followed Germany's example and established their own pension insurance systems in 1891, 1908 and 1913.

However, it was not until after the Great Depression that the pension insurance system was formally established.

That's because the economic crisis of unprecedented scale has shattered confidence in personal responsibility, so much so that Americans feel so strongly that they are constantly facing risks that they cannot cope with, and more and more people are having to turn to the federal government. Thus, Roosevelt, chairman of the United Front of the American Communist Party...... Well, the savior of the free world was enacted in 1935 with the Social Security Act as an important element of Roosevelt's New Deal.

The classmate who stood up and interjected was not tall, but he looked quite energetic, with a round head, round brains and round eyes, and a young man's momentum and curiosity on his face. His name is John D. McCall, and Yuan Yanqian actually knows him. Of course, Mr. McCall also had a good grandfather, known as the "romantic poet of the insurance kingdom", and the current president of the New York Life Insurance Company, Darwin P. Kingsley.

"Of course not!" Our Master Yuan categorically denied, "As we all know, the financing method of the pension system implemented in European countries at this time is a pay-as-you-go system, that is, the pension of retirees is completely funded by the contributions of workers in the same period. ”

"But this system carries great risks. We should see that with the development of science and technology, the average life expectancy of our human beings is getting longer and longer, and inflation can only continue and cannot be stopped. Therefore, as long as there is an economic crisis, the economic development slows down, and the unemployment rate rises, the demand for pension insurance expenses will rise significantly, and eventually it will be overwhelmed. ”

John D. McCall asked with great interest, "Then what method is Mr. Yuan going to take?" ”

"Master Ball, I said that this will produce an S value?"

"Yes and no, you know the host, in fact, it's useless for you to say it."

Hearing this, Yuan Yanqian was relieved. You must know that the wish is beautiful, but the reality is cruel. Regardless of what he said, the "Social Security Act" will not appear in the United States unless it is forced to do so, otherwise what kind of beacon of freedom would my great America be?

"We can adopt the method of building pensions together with enterprises and private individuals!"

He coughed, cleared his throat and said, "I don't know if you have noticed an economic phenomenon." Since 1914, the price of all daily necessities has skyrocketed, and now in 1920 they have almost doubled, for example, milk has risen from 9 cents to 17 cents per quart, butter has risen from 33 cents to 61 cents per pound, and sirloin steak has risen from 27 cents to 45 cents per pound. And the average wage of the American people remains stagnant. Personally, I don't think this phenomenon is sustainable......"

When he said this, the students were not satisfied, and Professor Chandler and Vice Chancellor Conant both looked satisfied. This Chinese student is really heartfelt and down-to-earth, and as an economist, of course, he must pay attention to all the changes in commodity prices around him.

"The next round of wage increases is inevitable. However, ordinary people often forget the importance of saving because of the temptation in front of them, so we economists should take precautions for them. We should remind companies and employees that instead of spending all the rising wages, it is better to plan ahead for the future......"

"And in my immature vision, there are two ways." He smiled at Louis Baker and said, "One is the pension fund, which is the pension collected by the enterprise and the trade union and handed over to professional investment funds and investors for management. Of course, this one is more risky. ”

"But there is another ......," he nodded to John D. McCall, "and you can buy special insurance set up by the insurance company." Although the profit is not as high as the previous one, the risk is effectively controlled. ”

Our Master Yuan said very modestly: "This is my little opinion, just for your reference. ”

Although he only revealed some conceptual things, this is NYU's Stern School of Business, not to mention Professor Chandler, these students are at least students with a master's degree in economics, how can they not hear the meaning of his words?

In fact, Yuan Yanqian said that investment funds and commercial pension insurance are all big goods, but he introduced the two concepts of "collective" and "salary", which is very different. This means that as long as the government can be pushed to legislate, then a significant portion of those wage increases will go to Wall Street for the foreseeable future!