Public Sector Pensions: an unstable Ponzi scheme

"So long as those contributions are sufficient to pay the public sector pensions of today, the cash flows in and
out steadily and in balance. Of late, however, the amount the Treasury has to pay to top pensions up has
risen and will rise still further into the future. Like an unstable Ponzi scheme, it will only work if tomorrow’s generations of new members and taxpayers is able to stomach a higher cost to pay tomorrow for the unfunded promises being made today.

Unless costs are recognised as they are incurred, poor decisions will be made as to the cost of recruitment
and retention of public sector employees."


Self interest and fear may drive many to cry "Rubbish!" but it is true. Simply cannot ignore an ever increasing burden of unfonded long term costs

And now, just like a Ponzi scheme, a lot of blameless people get hurt and will cry "how can this be?"
It's not "like" a Ponzi scheme -- it IS a Ponzi scheme. If it weren't run by the government people would be in jail.
Hands off my pension!


Book Reviewer
The big dark secret at the heart of the welfare state - especially pensions - was that it is those currently contributing to the financial pot via tax/ni are those who are paying for our current expenditure there is no real "insurance" element to the state at all. If there was, our contributions would be ring-fenced, invested, and returned to us. Instead, HMG of every stripe, has regarded NI contributions as yet another form of income to spend on whatever was the fashion of the day

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