Dad164 …… Regarding UK pensions and this notion of yours that either European pensions are affordable, or that GDP is any real measurement of a country’s ability to service those pensions by just using percentages.
First of all, this is the basic formula for GDP, and note how important government spending, consumption and business investments is – as a country can have ‘the wrong kind of GDP’ which challenges the sustainability of an economy, its spending power and therefore the money to be spent on ‘social’ things we enjoy like pensions, an NHS or education.
The basic definition of GDP.
www.investopedia.com/terms/g/gdp.asp
Private Consumption/Spending + Government Spending + Business capital Spending + Net Exports (Exports – Imports).
Companies whether they had to worry about two socialist main politic parties in Scotland for eternity or not, are not “scaremongering” when trading internationally and worried about a Scottish currency, how high Scottish interest rates will go, or if due to the volatility of oil, extra taxes would be aimed at them to make up any shortfall.
So with the aid of a few links, let me show you socialism in the UK at work through a 10-year boom until 2007 distorting the sustainability of GDP i.e. massive government spending and ‘manufacturing’ employment/consumption – as this is the blueprint for an independent Scotland.
The UK, in the 7-years to 2005, lost 1 million manufacturing jobs through a global manufacturing/consumption boom, partly due to a volatile Pound.
www.independent.co.uk/news/business/news/million-factory-jobs-lost-under-labour-6150418.html
The UK, over a longer period, helped admittedly by the increased tax proceeds of City/bank profits and consumption/debt spending, increased the Public Sector by around 1 million, with many people earning far more than ‘front line’ workers.
www.dailymail.co.uk/news/article-1214001/The-cost-quango-Britain-hits-170bn--seven-fold-rise-Labour-came-power.html
We also ‘manufactured’ jobs within local authorities, as our Council tax went up over 110% in 13-years.
www.dailymail.co.uk/news/article-1358144/Labours-3m-town-hall-jobs-bonanza-employed-deliver-frontline-services.html
So in summary, a UK GDP figure, heavily bloated by Government Spending and Government employees (who’s salaries and Consumption are 100% funded by the taxpayer), while the Private Sector/jobs paying taxes disappear - is not sustainable enough GDP to annually afford what we nationally spend, never mind pension fund liabilities 40-odd years into the future.
Oh and how about generous pension France and Italy doing, 7- years after the financial crash with heavy EU and national regulatory weights on the Private Sector.
Jan 2014; “French unemployment at record high”
www.bbc.co.uk/news/business-25922231
Aug 2014; ”Shock as Italy stumbles into third recession”
www.telegraph.co.uk/finance/economics/11016018/Shock-as-Italy-stumbles-into-third-recession.html
So Scotland has their share of the UK's debt liabilities, increasingly looking for an oil price that traded between $20 and $147 a barrel just seen during the Labour years based on global ‘events’, to not only pay for what they receive from Westminster now, but increases already promised by the SNP (to be run by a fatter and more expensive Scottish State) and Scottish pensions 40-years forward, years after the oil ran out.