“Politicians must wake up to the size of the debt time bomb in the UK. Older generations have voted themselves benefits that will indebt future generations, meaning crippling tax hikes for our children and grandchildren.
“Very significant spending restraint and reform of entitlements will be required in the next parliament and beyond to get our debt levels back under control.”
Their hand will need to be forced
…The solution? Government spending must be cut by 25 percent they say – and that would just hit the debt targets and not touch tax cuts which many argue are needed for expansionary economic policy.
The report suggests areas where reforms could be made to meet these targets, focusing on healthcare and pensions. They advocate changing the eligibility for pensions and healthcare by raising the state pension age further and linking increases to increases in the cost of living. They say it may also be ‘inevitable’ that pricing or charging for some aspects of healthcare be introduced.
In addition, replacing the state pension with a compulsory, private defined-contribution pension arrangements – which have succeeded in Australia – should be considered, they argue, saying that a compulsory healthcare insurance system would also benefit future generations.
But the problem with this lies in a cultural ideology, as Bourne explains:
“If we are to avoid crippling taxes on a shrinking working population to pay for this, it’s clear that significant spending restraint and reform of health and pensions will be necessary.
“This requires a level-headed debate, in particular about how we deliver healthcare and whether a free at the point of need NHS is viable in the long-run. Unfortunately, this debate is so often closed down by institution worshipping ideologues who do not want to discuss fiscal reality”.
Congratulations, Baby Boomers. You caused this entire mess and you’ll suffer for it.
The young will choose NHS, I think.