Paying the price for the Age of Entitlement

[nero_bolt]

This story is behind a paywall. A very interesting read

http://www.heraldsun.com.au/opinion/paying-the-price-for-the-age-of-entitlement/story-e6frfhqf-1226594297706

IT'S like a secret. How could this country run out of money even in a mining boom?    

How come Deloitte Access Economics warns we're tracking for years of more federal Budget deficits?

Sure, we can blame Labor's big spending, up from $272 billion a year when it took office to $363 billion now.

But here's a specific problem even the Liberals avoid discussing: in a country of just 22 million Australians, more than four million are living on welfare.

Almost two million more are public servants - federal, state and local.

That's six million people living on some form of state income. Who is paying for them all?

Who must also pay for the handouts given even to working Australians from the Schoolkids Bonus to subsidising broadband?

Who must do all that, and still look after their own family?

Hear that crack? A back just broke.

Few politicians before an election dare speak about us catching the European disease - too many people living off too few - though shadow treasurer Joe Hockey did try last year to an audience in Europe.

As he later told the ABC: "With an ageing population and an entitlement system that has seen extraordinary largesse built up over the last 50 years . . . Western societies are going to have to make some very hard and unpopular decisions . . .

"The age of entitlement is coming to an end because governments are running out of money."

But pushed to say if he was referring to Australia and, if so, what he'd slash, Hockey took fright.

"I'm not going to get into cherry-picking Australian initiatives from London . . . Australia hasn't got the enormous challenge that other countries have."

Not yet. But soon.

A Centre for Independent Studies report last week noted spending by all governments grew on average more than 4 per cent a year (after inflation) for 40 years.

But government revenue in the past three years slowed to just 1 per cent and, if mineral prices fall or the economy stalls, we're in strife.

We must cut spending, and that means tackling the entitlement culture that has so many Australians, not all deserving or helpless, living off the sweat of others.

How can it be, when we need so many foreign workers, that 530,000 Australians are still on the dole? How can even more - 819,000 - be deemed too sick or disabled to work, and in need of a pension?

Are we so feeble?

Then there are the 2.2 million Australians who didn't save enough for their retirement and are on age pensions. Add another 350,000 students we pay to study full-time at universities.

There are only eight million of us in full-time work, and one in five are public servants.

So almost every Australian with a full-time job in the private sector pays for either a public servant or someone living on welfare.

For now, those workers still just outvote people with a big stake in keeping the Age of Entitlement going, but soon the entitled will outnumber those paying for them. Then the chance of reform will be as slim here as it is in Greece.

Best start cutting now.

[2012foolfool2012]

Then there are the 2.2 million Australians who didn't save enough for their retirement and are on age pensions. 

Same old scapegoats. Current pensioners lived and worked in a time when you went to work, paid for your own family, and didn't get much back, in the knowledge that when you grew old and retired you would receive a MODEST pension that allowed you to get by living in the 2 bedroom weatherboard you brought up your family in, living on the boring and cheap white bread and vegetable diet that you always ate, with an occasional holiday to the BEACH in AUSTRALIA.

There are only eight million of us in full-time work, and one in five are public servants.

So almost every Australian with a full-time job in the private sector pays for either a public servant or someone living on welfare.

YEAH and you can bet the majority of those are the ones receiving the MIDDLE CLASS WELFARE called FAMILY BENEFITS, SKOOLKID$ BONUS, IPAD PAYMENT, etc. etc. etc.

Something like 50% of working parents are net RECEIVERS. They get back MORE than they PAY in TAX.

And STILL complain.

But you can bet LIBERAL won't be cutting MIDDLE CLASS WELFARE. THEY want a NANNY PAYMENT so you can pay your mother to watch your kid$ in your own mcmansion.

No. It will be the same old scapegoats. Those who aren't cogs in the machine. There is one hell of a bad time ahead for those people. (start popping out kid$ if you can, it's all that will save you - your ability to parent or support them does not matter, but you become a cog so capitalist will care for you).

[kengillard]

very depressing:-(

[izabsmiling]

NW, do you have some recent data on who is receiving payments ?

This re 

Social SecurityNewstart Allowance and mature age job seekersPrint

5.52 This section considers the situation of mature age job seekers in receipt of Newstart Allowance. The ALRC does not propose to make any changes to activity test requirements for those aged 55 years and older. However, the ALRC asks for stakeholder comment about whether changes to the withdrawal rate for Newstart Allowance for recipients aged 55 years and older would have an effect on incentives for workforce participation.

5.53 At June 2012, there were 550,000 recipients of Newstart Allowance.

Of these, approximately 22% were aged 40–49, almost 19% were aged 50–59, and 9.1% were aged 60–64.[85]

5.54 For the purposes of Newstart Allowance, ‘mature age’ is defined as 55 years and older. At June ...[86] This number has almost doubled since June 2002,[87] driven by the phasing out of Partner Allowance, Mature Age Allowance and Widow Allowance, as we...[88]

5.55 Approximately 50,000 Newstart Allowance recipients aged 55 years and older are ‘very long-term’...[89] This represents approximately half of the total Newstart Allowance recipients in this age brack...[90] as well as 20% of all very long-term income support recipients.[91]

5.56 Some Newstart Allowance recipients have been assessed as having a partial capacity to work: a p...[92] At June 2012, there were 99,884 Newstart Allowance recipients with a partial capacity to work.[93] Of these, 27.1% were aged 55 years and older.[94] Persons with a partial capacity to work made up 27.6% of all Newstart Allowance recipients in t...[95]

and now we have single parents on Newstart ..

doesn't that make you happy ?

[izabsmiling]

Don't upset the pensioners who didn't save enough for retirement 

[izabsmiling]

The Schoolkids bonus is the former Education Tax Refund NW

Do you know who bought that in and when ?

[*crikey*mate*]

The schoolkids bonus is a rort!

Before this new system, the expenses came off your taxable income - now they don't - so in theory, everyone's income just went up about $1000 for every kid they have, without them actually having any extra money in their pockets. Don't know exact figures, sorry - but you get the idea.

Must look good for the statistics though.

Wonder how many people that put into a higher tax bracket or lower benefit entitlement iykwim

[izabsmiling]

I know... bought in should be brought in 

[*crikey*mate*]

DISCLAIMER - I withdraw that opinion if LL disagrees with it.

*cheeky grin*

Good Morning LL 🙂

[izabsmiling]

Before this new system, the expenses came off your taxable income - now they don't - so in theory, everyone's income just went up about $1000 for every kid they have, without them actually having any extra money in their pockets. Don't know exact figures, sorry - but you get the idea.

Is that correct ?