The economic crash has seen Treasury dramatically revising its long term outlook for the economy, questioning Government spending in virtually every area, including the eligibility of the pension for 65-year-olds.
Treasury says if spending follows historic trends, the books will remain in the red beyond 2050 and debt will rise to 220 per cent of the country's wealth.
It points to other countries raising the eligibility age for the pension, with Treasury Secretary John Whitehead saying decisions made now can prevent economic disaster later.
Mr Whitehead says making early incremental change reduces the risk around the quality of decision making and gives people time to adjust. The Government has been adamant it won't change the eligibility age.
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NZ too? The banksters are ruining even that beautiful country?
ReplyDeleteWow- I have been reading here for months and then suddenly I see my country getting a mention!!
ReplyDeleteThere is actually nothing new here in terms of New Zealand- we have been heavily indebted for a long time. Treasury are not known for getting their predictions right so their long range forecast cannot be taken particularly seriously. They are also idealogically quite to the right and have been proposing cuts to services for many years- nothing to do with the recession.
New Zealands main problem at the moment is a big property bubble- too many speculators collecting houses- but I guess we share that problem with much of the rest of the world.
I thought a couple years back that NZ would be a good place to move, to leave the Empire, but alas the banksters are global so at best it just buys a little time.
ReplyDeleteLike moving from Germany to Italy circa 1935.