The Guardian covered a story today regarding public sector workers having to work longer and pay more tax.
We are not fans of people who work for the state but it’s bizarre to see the government treat it’s own employees as badly as people who finance the government. Another reason why people should work for the private sector!
What’s my problem with this? Surely it is good, ie treating government workers the same as the private sector? Well first off, government employees get bigger pensions that the private sector employees. I am not sure how it has come to this but this is where we are.
Our employees now get better benefits than the people who pay their wages.
Anyway, I will get to the point. The government is “spinning” this story to make it sound like the government workers, the public sector workers are paying more to cover their own pension. Which is complete wrong.
The taxes these public sector workers pay will not go to them, the government does not have some piggybank tucked away somewhere where they save all the money until you are ready to retire.
The extra taxes the public sector workers will pay will go to pay for the day to day running of central government, ie paying the electricity bills, water bills, salaries and of course the pensions of those that have already retired.
The pensions system in the UK and most countries is a ponzi scheme. The whole house of cards is funded SOLELY by new employees entering the work force to pay the returns to investors who got it before them.
The pensions system is a complete scam and if it was carried out by private individuals they would be arrested. There is an absolutely fool proof way to test this hypothesis,the government could give all the “pension” contributions to a private company to manage. If the day to day running of the government continues as normal, I am wrong. If this causes pensions to go unpaid and for the lights to go off at government offices, I am correct.
The phrase “pension black hole” is bandied about in the media a lot but people need to understand what it means. It means the government is taking your money and it is not only going to keep it, it is going to give it to someone else.
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