Quote:
Originally Posted by nomadking
The main problem the pension funds have is too high a cost ie defined benefit schemes, that were set in place by socialists.All exacerbated by the minimum wage, which means that a lot more money is taken out than was paid in to generate the income.
It wasn't the banks as such that were bailed out, it was the finance system. The risk was that nobody would invest in order for that money to be lent out on business loans and home mortgages. Where do you think the money comes from for those loans? It comes from people with surplus money.
|
Not sure that statement is valid - Defined Benefits in private companies in the UK, such as IBM, GE, Halifax, et al, were ended because people were living longer (and thus claiming pensions longer), not because they were set up by Socialists (IBM closed its Defined Benefits pension scheme in the early 90s to new entrants, and BT did the same in the mid-2000s - I worked for both of them).