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30th October 2015
Recently, the chancellor of the exchequer, George Osborne, suggested that public finances should be re-engineered towards 'intertemporal equity'. This is fatuous - although less so than his verdict on Ireland, delivered just before the Irish boom went belly up: "Ireland stands as a shining example of the art of the possible in long-term economic policymaking."
The New Statesman's take on this was that: "Ireland boomed instead on a toxic mix of cheap credit, lax banking regulation and by becoming a borderline tax haven." The rest of the article is well worth reading too (New Statesman, bit.ly/1GrXhb2).
I trust Mr Osborne's latest fantasy will have as little effect as his hymn to Ireland. If we listen to it, it seems to follow that offering government benefits and pensions to World War II veterans violated some sacred financial, as well as actuarial, principle since that war generation could hardly be expected to pick up their own tab: they were busy.
One could make a similar case for introducing government pensions
payable to all citizens working at scheme inception and reflecting past service in the benefit formula.
Should not the actuarial profession tell the chancellor that the test for benefits provided by governments should be whether they are sustainable over the long term? Actuaries, unlike politicians, are supposed to think about the long term.
Let's do so.
The New Statesman's take on this was that: "Ireland boomed instead on a toxic mix of cheap credit, lax banking regulation and by becoming a borderline tax haven." The rest of the article is well worth reading too (New Statesman, bit.ly/1GrXhb2).
I trust Mr Osborne's latest fantasy will have as little effect as his hymn to Ireland. If we listen to it, it seems to follow that offering government benefits and pensions to World War II veterans violated some sacred financial, as well as actuarial, principle since that war generation could hardly be expected to pick up their own tab: they were busy.
One could make a similar case for introducing government pensions
payable to all citizens working at scheme inception and reflecting past service in the benefit formula.
Should not the actuarial profession tell the chancellor that the test for benefits provided by governments should be whether they are sustainable over the long term? Actuaries, unlike politicians, are supposed to think about the long term.
Let's do so.
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