Saturday, March 17, 2012
Boomers crashing the country
Unusual article from the Guardian querying whether pension obligations should be able to cripple companies. This, writ large, is the case for the UK generally. Whenever I read about the wealth of the boomers, I always think, what wealth? Pension contributions, if made at all, were directed to government debt specifically for immediate spending. There was no real saving. Look at rents and taxes. Consider how much of direct taxation is channelled to boomers through artificially high housing benefits, debt servicing costs. Government debt of this form is incredible, we accept that one group borrow to spend on themselves but another pays it back.