PowerSwitch

A lot of talk yesterday in the news, stirring up things from a few months ago, that we will have to raise the pension age. Possibly to 72. By 2020.
Not exactly popular news, not exactly a vote winner, and not something the government _has_ to do in this term of office - they could just leave it. So I thought, well, maybe if they can come out and say this, and if Sweden can say it is going to switch to an oil-free economy by 2020, then there is hope. But, maybe in the case of pensions in the UK, this move is actually very friendly to big business, the friends of government because it will encourage people to start putting more money into their private pensions. It is also something probably accepted by all main political parties so there wouldn't be much resistance to it - not that there will be much of a pension system left by the time I retire!

But isn't Tony all about tough choices? Wasn't that what he told us about Iraq? All about tough choices, except on air transport, global warming, peak oil....


Peter.

I was only half listening to Radio 4 this morning but around 7:30 someone was talking about increased taxes or fines for people who waste energy, don?t insulate, use non-efficient light bulbs? then the next piece was about a new higher road tax for very inefficient cars and cheaper tax for the most efficient cars. Anyone else hear this or what the context was?

clv101 wrote:I was only half listening to Radio 4 this morning but around 7:30 someone was talking about increased taxes or fines for people who waste energy, don?t insulate, use non-efficient light bulbs? then the next piece was about a new higher road tax for very inefficient cars and cheaper tax for the most efficient cars. Anyone else hear this or what the context was?

Wouldn't increased energy/petrol taxes (and decreasing the road tax) be a better way to tax inefficiency? A more efficient collection mechanism (don't have to change the road tax collection mechanism), and exactly proportional to the behaviour in question,


Peter.

Chris - the Radio 4 thing was about the policy studies institute - I put a link to it on the news section.

Peter - I agree although maybe they are cautious about the inflationary effect?

PowerSwitchJames wrote: Peter - I agree although maybe they are cautious about the inflationary effect?

Remember inflation only occurs when they print more money.

Remember inflation only occurs when they print more money.

That is true, but the temptation is going to become huge to do that!

Could anyone explain how inflation would effect our international competitiveness, jobs, e.t.c.

Neil

Neily at the peak wrote:That is true, but the temptation is going to become huge to do that!

It's (M3) been between 5 and 12%pa each year for the past decade.

so what does that mean then? inflation is well behind the growth in money supply?

I think I will have to look out my basic economics books again!!


Neil