INSEE estimated at 25% the share of spending socialized in household consumption.
By Anne-Aël Durand
Assume collectively spending in the name of social cohesion, it is the principle of the model social French. Often criticized for its cost – public expenditure represents 57% of gross domestic product (GDP) – This system benefits directly to individuals by reducing the share they have pay for various services: health costs, aid housing childcare, care for disabled …
A recent INSEE study all of these activities, called “socialized spending,” amounted to 384 billion euros, representing the equivalent of a quarter (24.9%) of consumer of households in 2015. This share has been increasing since the early 1960s
The health and welfare of the most supported
It is in the health sector that expenses borne by the public sector increased most significantly with the expansion of medical offers and aging population from the 1970, before the control health spending becomes a goal in the 1990
For accommodation, the share of state aid increased by step: the family housing allowance, created in 1948, was completed in 1971 by the social housing allowance (ALS), before the creation of the aid personalized housing (APL) in 1977. on average, rents for French are now supported to 22% by public money (against 10% in 1960),
As for social action on behalf of the most vulnerable populations (young children, elderly, disabled), it was further funded by the state with the personal autonomy allowance (APA) and aids child custody early 2000. the family allowance and local governments also contribute, along with a large amount of associations and other nonprofit institutions.
In these three areas, public funding share has now stabilized, when it does not erode slowly.
If social action is two-thirds financed by the community, a great disparity in terms of public there is: almost all of the care and hospitality to people with disabilities is supported, as three-quarters of small storage fee (crèches, childminders) retirement homes but remain a significant cost item for individuals.
A role of “shock absorber” of crises
The study was limited to certain sectors where consumption is tangible and has a market value for the individual, excluding general expenses ( justice Police ) or allowances that are not related to a product or predefined service (unemployment benefit, allowance for school). She mentioned other areas where individuals benefit from public spending: education, 90% financed by the state and cultural and leisure activities, including households ultimately bear 17% cost.
Generally, public expenditure is singled out in times of economic crisis. It is true indeed that they increase when GDP declines, while they “disappear” when growth returns. But INSEE said that these amounts, which contribute to maintain on power consumer purchasing, so their level of consumption play a real role of “damper social “.