Ritchie wants your pension

Yup, that money you\’ve got squirreled away to pay for your old age, it\’s to be spent on what R Murphy thinks it should be spent upon, not what might provide you with that pension you\’re saving for.

Robert Skidelsky and Felix Martin call for the creation of a National Investment Bank in the FT this morning.

Call it the mechanism to fund a Green new Deal if you like.

Provide it with its capital out of a compulsory 25% investment pension funds should make out of their tax funded income that they should invest in new employment creating opportunities.

See? 25% of your pension must be spent on what Caroline Lucas and Richard Murphy thinks might make money. Rather than what trained professionals think might make money.

Can\’t you just feel the wealth that you\’ll be rolling in in your dotage?

Ms. Lucas being the woman who thinks that more labour intensive methods of energy generation are a good thing? Actually make us richer rather than poorer? The woman who has apparently never heard of opportunity costs?

And Murphy, well, do I really have to explain?

Worth reading up on the Groundnut Scheme really.

The Tanganyika Groundnut Scheme was a plan to cultivate tracts of what is now Tanzania with peanuts. It was a project of the British Labour government of Clement Attlee. It was abandoned in 1951 at considerable cost to the taxpayers when it did not become profitable. Ground nuts require at least 500 mm (20 inches) of rainfall per year; the area chosen was subject to drought.

That\’s the sort of thing that\’ll do your pension a lot of good, eh?

11 comments on “Ritchie wants your pension

  1. Fine, as long as we can surcharge Ritchie and Lucas if their ‘investments’ turn sour. If it was their money at risk I think they would shut up.

  2. They talk about “pension funds” but I have a SIPP. Are they going to force me personally to sell investments and buy their crappy bonds? And if I refuse, will they send a policeman to log in to my PC and execute the trades?

  3. I particularly liked this bit in Ritchie’s paper: “Using data for the most recent year available – 2007/08 – it shows that total pensions paid in that year amounted to £117.6 billion. Of this sum £57.6 billion was state old aged pensions, £25 billion was state employment related pensions paid to former civil servants and other former public employees and £35 billion was private sector pension payments.”

    Nice of him to confirm that the 6 million state employees’ pension are so generous compared to the 22 million in the private sector.

    Otherwise I’ve seldom read such a load of tosh. It’s hard to know where to start. In fact I can’t because it’s so bad. I’d post this on his website but he always deletes my stuff.

  4. My usual post.
    ‘Glad I don’t live in the UK anymore.’ Don’t have to put up with worying about him one day having influence over policy makers instead of his constituents.

    Greedy little bugger. Wants 25% of your cash.
    Although, in this case, it’s clearly a non-starter.

    He like flying kites, though. Wonder if he’ll ever get struck by lightning?

  5. As you can see, it has to be compulsory.

    If it were viable, they’d be a queue to invest.

    Typical immoral authoritarian forced collectivistas.

    Shameless.

    What is so tragic is I do believe that on the surface they have begun to believe the utter codswallop they spout. Delusion sets in as they swallow their own lies.

  6. Why should it be compulsory?

    ‘Cos it’s a crap deal?

    Be brave Mr. Murphy. Set it up and sell it by proving its worth instead of trying to legislate your business into existence.

    A little word of advice and I know you are good at handing it out but not so good at taking it, still, here goes: Setting up a business is actually a lot more difficult than writing reports and speaking to the converted. Sometimes it actually invovlves personal financial risk. But I sure you can do it.

    Ah? No? Wonder why not?

  7. I said last week when he first floated something like this that the State would steal your pension and ‘invest’ (hah!) it in whatever whacko schemes the Left believes in currently.

    I didn’t think he could crank out a plan in so short a time, having checked it thoroughly for flaws.

    The Far Left: everything you own, everything you earn, belongs to them.

  8. A good reason not to have a pension I suspect, if 25% of your contributions are going to be ‘invested’ by the likes of Ritchie & Co.

    What’s the likelihood that any such fund would quickly become a Ponzi scheme as money coming in was recycled to pay out the people wanting to cash in their funds? Because I can’t see the ‘investments’ actually ever making a cash return.

  9. I went there and found this:

    “One that is bound to deliver the result we need in our economy, for growth, for unemployment, for tax revenues, for closing the deficit.. It’s not hard.”

    I should have known. So simple. Let him and his friends do the investing. Yes, It’s bound to work. This guy makes the rest of investors look like amateurs. How can he know so much and yet achieve so little?

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