As you are talking about the uk. People on unemployment benefit got a 5.2% raise this year. Pensioners get a rise of at least earnings, inflation or 2.5%, whichever is the highest. The Uk will just keep printing and borrowing. The austerity is an illusion, they have just slowed the rise in government expenditure. Debt will go up from £1 trillion to £1.5 trillion by the end of the parliament.
To quote Keynes, we are all dead in the long term. The private sector pensions were destroyed by Gordon Brown. Dividend tax relief was abolished. It did not cost labour 1 vote.
True but before they die the boomers in the UK will lose their pensions and be penniless for a decade or two.
It is mathematically impossible to pay those pensioners. Why you may ask. Well, we could pay them 100K each, but we cannot pay them enough consumption, as in what they will get is inflated $s. We are going through a deflationary spell, but this will not last for long. The number of producers in the American society is declining and the number of producers that still are there, are mostly clicking keys on key boards and shuffling money around. A very small % is producing food, doing research and moving things. The rest are in government or finance, real estate, insurance and other useless crap. The state and all forms of governments will squeeze the producers more and more trying to stay in the office . Take this as an example: 1. In 1990, 50 traffic tickets = 1 Laptop 2. In 2000, 10 traffic tickets = 1 Laptop 3. In 2010, 1 traffic ticket (with court fees) = 1 Laptop The leeches are sucking blood.
No problem. Congress has passed the legislation over the slow holiday season to deal with it. Now look for a new prison building program as a job creation strategy. No more messy legal rights for protestors. I sometimes wonder is this is how it was in Germany in the lead up to WWII Hope I am wrong.
So, just out of idle curiosity, in this particular example how do we know that this is "the leeches sucking blood"? Couldn't it be that we're just so good at making laptops cheaply and efficiently?
Tis brings to mind a different question. At what point will the boomer "protest"? When he has spent down all his assets and find his pension is diminshed or non existent? Dead broke, no possibilities of employment? Or will the boomer "protest" while he still has something left. People who've earned a pension, obviously were on the job long enough to actually navigate life well enough to continue making long range plans for this scenario. Rioting I don't think is the first thing on their mind, recourse through the law would be first.
It is alot easier to point the the finger at big bussiness and blame them when the 401K well runs dry. Everyone is expendable just throw them down the fiancial pit. Boomers are going to hold onto thier wealth as best they can but health care will eat every dime and wondering where did they go wrong. They listened to the wrong people people and sold a bag of beans. Taking care of the ederly in a "managed care" situation you get to know the ins and outs. Welcome to Planet Misery, Akuma