Mechanisms to optimize expenditure on social protection

In times of economic crisis it is especially important to define a relationship between a set of indicators that characterize poverty and other indicators (such as the demographic or the economic) to quantify the effectiveness of public income redistribution in social assistance. The correlation between quantitative indicators of poverty and social satisfaction and other indicators that characterize the economic environment will be studied below, using regression, as a quantitative tool. The study was performed using European Union countries statistics and aims to highlight the opportunity of state intervention in the politics of redistribution and taxation. The results reveal that income inequality causes social dissatisfaction higher than low per capita income. The conclusion of the study generated the necessity of including property taxes in the universal tax policy, fact that leads to a greater social satisfaction while facilitating investments in the social economy based on a mechanism to increase aggregate utility at disadvantaged groups. This tendency towards capital income redistribution (characteristic of free market economy) can be tempered with an appropriate system of income redistribution that is using social investment and wealth tax dimensioning. This study offers solutions for building a mechanism that is maintaining a high social satisfaction rate in the context of a coherent economic growth.