Great Britain is trying to Privatize their State Pensions

Posted by PITHOCRATES - January 26th, 2013

Week in Review

Britain is a social democracy.  Not as much as they were before Margaret Thatcher.  But still a social democracy.  They have national health care.  And state pensions.  Something the American Left always wanted in the United States.  They got the state pensions—Social Security—a long time ago.  But they’ve been waiting a very long time for their national health care.  Now they’ve got something like it in Obamacare.  And now the Left can follow in the footsteps of that social democracy they so admire.  Who has no problem whatsoever in providing those lavish benefits onto their people (see Start retirement saving now or the government may make you by Sarah Mortimer posted 1/25/2013 on Reuters).

Britain may soon have to force workers to start saving for retirement to cut a soaring pensions bill set to reach 120 billion pounds in 20 years…

The government’s current pension legislation is an attempt to tackle the country’s ballooning pensions bill, set to hit 8.5 percent of economic output by 2060, from 6.9 percent now…

Britain lags behind countries including Denmark, the Netherlands and Australia in global pension rankings. Its pension system ranks seventh out of 16 countries in a global comparison of national schemes, according to data from consulting firm Mercer. Its lowly ranking reflects an ageing population, low investment returns and large government debt…

“One way or another, long-term pension contributions will increase,” Paul Macro, defined contribution retirement leader at Mercer said. “The government are trying to stop people relying on the state to support them in retirement.”

An aging population, low investment returns and large government debt?  Sounds like they’re talking about Social Security.

Note how Britain is trying to make their people less dependent on government while the U.S. is trying to make their people more dependent on government.  Even though both countries face the same problems.  An aging population, low investment returns and large government debt.  So it would appear one country—Britain—is trying to be responsible.  While that other country—the United States—isn’t.  Why?  Because Social Security, Medicare and Obamacare are not about taking care of people.  They’re about increasing the power of government.  Which is why the U.S. continues to increase their spending obligations no matter how much they can’t afford to.  Because spending money buys votes.  And winning elections give them power.  Which is what they want.  So they will ignore the responsible governing Britain is doing.  While implementing the kind of programs that caused Britain’s financial problems in the first place.

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