[A-List] French Pension Strike

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

The French pension system, the foundation of European socialism, is
again under attack.  The public is unhappy with the strikes of public
sector workers. Neoliberal economists argue that France cannot
competitively afford a "generous" pension system in view of globalized
captialism in which capital always seeks regimes that does not syphon
off return on capital to pay generous pensions.  The begger thy neighbor
syndrome has now come home to rooste in developed economies from the
Thrid World.  Capital flight will result if an economy does not
sacrifice its aged.  It is the same argument Greenspan uses to tolerate
derviative risks.  Yes, it is dangerous, but if we regulate it, the
danger will merely move off shore, then we will still be hit by global
contagion without even capturing the benefits of the derivative market.

One of the big component of the pension system is health care cost,
which has skyrocketed because improved medical services and treatments
have extended longevity.  Cutting pension health payments would reverse
this trend and let the retired die earlier, and lessen the cost burden
of the system. Yet lowering longevity also cut consumption demand, a no
no in an overcapacity environment.

My suggestiion is if pension reduction is unavoidable because of
political dynamics, why not introduce a senior citizen price structure,
that any retiree can purchase all goods and services at 50% discount?
Hollywood already has a system in place for movie admission, so does the
National Parks system and some airline ticketing plans.  Let them cut
the pension payment by half, but increase the purchasing power of
retirees by 100%.  Every body would be happy.  Now that an idea worth of
a Nobel prize.

Henry C.K. Liu