“Everything is factually false in the argument in favor of capitalization” | EUROtoday

DYears a context of the disaster of the productive system in most main sectors of the world financial system and confronted with the specter of a break -up of a monetary disaster at any time, the marketing campaign in favor of a retirement system by capitalization has one thing surreal, if not of ubuesque. This marketing campaign takes on a renewed magnitude, with, on the maneuver, all of the conservative forces which need to limit the pension system by distribution, if to not finish it.

As quickly as negotiations are opened throughout the framework of “Conclave” needed by the federal government of François Bayrou, French employers, by the voice of the president of Medef, had indicated that he would oppose the rise within the charge of outdated age contributions and that it was essential to introduce “One dose” Or “A pillar” capitalization to finish the distribution system. This proposal was theorized by the World Bank within the Nineties on the daybreak of neoliberal globalization, taken up in choir by all supporters of monetary capitalism. Let’s say it clearly: every little thing is factually false within the argument in favor of capitalization.

Capitalization retirement would stay topic to the identical demographic constraints as that by distribution. Because it’s all the time the property that deliver inactive to life. At the time of the liquidation of contracts, the insurance coverage firm or the pension fund should discover new contractors to have the ability to pay pensions, and they might be the employees of the second. In a phrase, solely work provides worth to share. Not solely does the opposite perception come from fiction, however as Keynes mentioned, any capital should be ” door “ And its liquidity for everybody on the identical time is unimaginable. Retirement financial savings and life insurance coverage don’t change this rule: you by no means finance your individual retirement.

Diversion of wealth

Capitalization is condemned to bear the upheavals of finance; Hundreds of hundreds of Americans skilled this after the 2007 subprime disaster. One of its traits is that it’s a so-called “defined contributions” system, that’s to say during which any visibility on the approaching pensions is obscured, and never with outlined advantages. Supporters of capitalization argue that the return on capitalization is greater in the long run to that of the distribution system. But, on this long run, the unlucky retirees have time to be ruined a number of instances by the recurrence of monetary crises, giant or small.

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