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77 sats \ 3 replies \ @Scoresby OP 10h \ parent \ on: The US taxes younger workers and gives their money to wealthier retirees charts_and_numbers
I'm not steeped in libertarian theory as some here are, but my personal response is this:
means testing is kind of a trap. once you open the door to what is "enough," politicians can squeeze all kinds of other things along side it (surveillance, nudges one way or the other, choosing groups).
If you are gonna do something like guarantee each resident/citizen an income after a certain age, just do it for everyone.
Yes, I think that was the general theory behind the original scheme which established this system we have, but it was established at a time (1970s) when the demographics were much different- there were far fewer older people and far more younger people in work to support the retirees. And yes not means testing does make it very simple to administer.
But as the demographics have changed since the 1970s the cost burden on younger people has become much heavier- I cannot blame younger generations for resenting the Boomers (of which I am one) for this seeming inequity.
While agreeing politicians will always meddle with these things like abatement rates and thresholds I just struggle with the idea that very very wealthy people in my country can claim a retirement welfare benefit that they do not need when younger people are paying taxes for that benefit and often cannot access other welfare or government services because of lack of funds.
The current expense of the pension is greater than all other welfare paid in NZ, and it is increasingly rapidly as the population ages.
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The current expense of the pension is greater than all other welfare paid in NZ, and it is increasingly rapidly as the population ages.
This is such a big problem. I don't think any politician will have the guts to make a hard call, so it will be hide it, hide it, as everything slowly degrades.
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Several politicians have tried here in New Zealand but there is huge incentive for politicians to play on peoples short sighted greed and selfishness and cancel longer term solutions when governments changes that has happened repeatedly here in NZ over the last 50 plus years.
The original universal pension was introduced by a populist politician who scrapped a program (similar to your 501 scheme I believe) which would have given everyone a retirement fund built up over their working life.
Many times since any attempt to change the system to something more sustainable has been reversed by populist backlash and revisions.
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