Friday, 12 March 2010

Public Sector Pensions

Burning Our Money has a critique on the above, which is well worth a read.

"Now according to the government, this won't be a problem because the economy will grow. So as a percentage of GDP, the cost remains close to its current level of 1.7%. But according to the NAO that is grossly misleading. To start with, the government assumes that the UK's productivity grows by 2% pa. Which would be a good trick if they could do it, but they can't. Over the last ten hyears productivity has averaged just 1%pa, a total collapse from the 1.7% pa Labour inherited - and scoffed at - in 1997."

This subject must rank alongside other important ones - Britain's EU membership, the state of our democracy, politicians denial of the need to represent their constituent's views - and what is more remarkable is the silence on this by the Conservatives and LibDems.

Perhaps the answer to the problems we suffer with our politicians is in the title of a Clint Eastwood film. Drastic? Maybe. Effective? Oh yes!

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