Armstrong Economics Blog/Pension Crisis
Re-Posted Jul 27, 2017 by Martin Armstrong
The Work and pensions secretary David Gauke have revealed that parliament proposes to raise the pension age to 68. The pension crisis that is brewing throughout Western culture reflects the insanity of lowering interest rates to try to “stimulate” the economy. This policy has set the stage for the next great crisis brewing, which will expose the postwar Socialism is just a total failure.
The rise in government on average to about 40% of GDP means that this is consuming the wealth of every nation and suppressing the economic growth. This is forcing people to work longer to survive and hence they do not retire quickly into the sunset holding on to jobs that then in turn cause higher unemployment in the next two generations. There is not much we can do about this because politicians will never act to prevent a crisis, they perfect to act only when a crisis emerges. Consequently, the Pension Crisis is simply unavoidable.