Spain Circles The Drain While Still Clinging to Entitlements
Cautionary tale.
“Mr. García and Ms. Díaz are puzzled by the health system in the United States. They see universal health care as a basic right. “In this aspect the United States does not seem to be a first-world country,” Mr. García said.
The García-Díazes have virtually no savings, as they consider the deductions from their paychecks going to pay for pension and health care as their basic safety net. In times of trouble, they expected to be able to lean on their parents, who are retirees. But their incomes, too, are being cut. The $1,600-a-month pension that Ms. Díaz’s mother, Marisol Alcala, 62, receives has been frozen, even though Spanish law guarantees cost-of-living increases.
Like many other Spaniards, Mrs. Alcala opted for early retirement.”