Ritchie and the economics of pensions

The ‘value’ created in the dot.com era has faded and passed, and the result has been, at least in part, a 0.7% annual decline in the value of pension funds since the turn of the century. The value in all those assets we suggested pension funds should invest in has remained intact for society at large, if undermined in too many specific cases by PFI.

Hmm, OK. For the sake of argument…..the solution is:

People’s Pension will be backed by People’s Pension Funds. These entirely new funds will be created to provide a way in which pension contributions can be invested in the building of new public infrastructure projects such as:

• schools and universities
• hospitals and other health facilities
• transport systems (including railways, trams and bus networks)
• social housing
• sustainable energy systems

D’ye see what he’s done there? He’s compared the private return to investors in the first case to the social return to consumers in the second.

We could, and should, compare the private return to investors in both cases (and who thinks that bonds would be a good investment in current times?) or the social return in both cases. And I’m not all that sure about you but the social, the value to consumers, of things like mobile phones, Google and all the rest appears to be quite large really.

24 comments on “Ritchie and the economics of pensions

  1. If you are a company with a $1b valuation, $1b in revenue or $1b in income, if Ritchie’s never heard of you, your value is zero. If Ritchie has heard of you, you’re a tax dodging monopoly.

  2. All of his proposed “investments” are in fact costs and drains on wealth. Schools etc might produce future value (although they would have to teach something of value not degrees in leftist tripe) but they are still a cost not an income producing asset like a factory etc. The renewable energy crap and out-of-date transport systems he proposes are subsidised loss-makers and (esp in Scotland) spectacular sources of corruption.

    You might as well put your pension money on a Guy Fawkes night bonfire. At least you would get a bit of heat out of it. Ritchie isn’t even smart enough to be a thief. A thief has the gumption to use what he takes for himself. This idiot wants to throw your money on the bonfire for you.

  3. “The Peoples Pension”. FUCK OFF.

    I am a person and I have my own pension. Get your claws off it you thieving communist bastard.

    Something prefixed with “The Peoples” has been almost invariably for the past fifty years clearly NOT owned in any way by “the people” but by a despotic state run by ‘Richies’. It is incredible that he uses this term in a non-ironic way.

  4. The value of a degree is usually in the skills not the content. Leftist or right wing, who cares? Can the person then present the information they are given? Can they sum up large amounts of data into something readable? Can they work with others? Can they produce to deadlines? Can they grow up?

    I’ve no problem with government investing in stuff that gives a social return. Pensions investing in that stuff – pensions affecting future income for millions – thats an unsound financial strategy. I run my own pension and not letting Ritchie get his claws on it.

  5. “The value of a degree is usually in the skills not the content. Leftist or right wing, who cares? Can the person then present the information they are given? Can they sum up large amounts of data into something readable? Can they work with others? Can they produce to deadlines? Can they grow up?”

    Are you joking?.

    A degree in sociology or medja studies is equal to being qualified as an industrial chemist or an electronics engineer?. What skills do the former display ? How to dress up socialist shite so people don’t choke on the stench?.

  6. Could someone explain to me how the People’s Democratic Pension Fund gets any return on its spending? The only mechanism that springs to mind is PFI (by having the PDPF providing the investment and the taxpayer providing the return) but the government is hopeless at those.

    Presumably this is all tied into some new way of measuring value and economies that would give it the illusion of being sustainable? Otherwise it just looks like a massive pension fund tax.

  7. For Heaven’s sake don’t tell Ritchie about the social value of Google! He’ll only call for it to be nationalised.

  8. Gareth

    The return on the fund will not be money, it will be JOY. In the future, money will have been banned, and pensioners will be able to obtain food and shelter by simply being happy in the glorious state they have courageously created.

  9. What am I missing here?

    Individuals using their pension funds via business for a return from profit-making schools is evil capitalism.

    Individuals investing their pension funds via Govt for a return from profit-making schools is social justice.

    Errr…?

  10. A couple of points to note – Classic Murphy in the comments to ‘Dirk Fucherd’ (any takers for that name here?) –

    ‘The first two extract value by being virtual monopolies and tax abuse.

    who the hell are the others’

    Apparently blissfully unaware that (for example) in his own published work, he advocates state monopolies on pension provision or healthcare provision (amongst others)

    Perhaps an understanding of his mindset is revealed by his first current post on Lynton Crosby – apparently those on ‘social security’ will, in due course of time, ‘give back as they are able’ – news to millions who have paid ever – increasing taxes to fund communities where sometimes up to half the population have never held down paid employment.

    Truly the man is emblematic of our time. Fortunately it seems only the Greens are buying into his particular brand of idiocy and following his exposure by the Maugham blog yesterday, his credibility (what’s left of it) is fast eroding to nothing.

  11. Rob

    When I point out the historical parallels and images conjured by the use of the term ‘The people’s’ you get an ad hominem accusing you of pedantry, trolling, neoliberalism, being an ideologue, intellectually bankrupt….etc

    If you’re really lucky, one of his more bizarre acolytes (sorry, a ‘serious person’ is, I think the nomenclature ‘du jour’ ) Andrew Dickie will appear to tell you that things actually were much better under communism for the majority of ‘the people’… Really I don’t think even the late Peter Simple could have done justice to the man – utterly clueless and unmatched in terms of elevated self- importance and total lack of modesty.

  12. As he often does, Rob has beaten me to it.

    This utter, utter twat thinks that pre-fixing anything with ‘the people’s’ transforms it, by some magick, into something better. (If he believes it. I note he’s quite fat; I think he does it for the wedge.)

    VP has also beaten me. Had Peter Simple taken industrial quantities of acid I’m still not sure he’d have been able to come up with Murphy.

  13. Mr Ecks – there is a difference between subject specific skills and general skills.
    Does a PA need electrical engineering skills or other skills learnt on the course in order to do the job? Does a sales rep need industrial chemist skills or other skills learnt on the course?
    I’m not saying give a job as an industrial chemist to someone without the knowledge I am saying there are many skills useful across many jobs that are not subject dependent.
    I’ve never done media studies but do know some graduates from that. One is a businessman running a garage (he has mechanics to work on the cars he runs the office); one is a PA; one is an import/export agent. Perhaps they find skills useful, certainly the ones working for others impressed enough to get and keep the jobs they have.
    I’ve never tried to take a 2 hour movie and break it down into components for a 5 minute presentation. Sure thats a useful skill in presenting an issue to others or trying to sell an idea.

  14. Hmmm… He writes a blog article providing his expertise on internet value, and then claims never to have even heard of companies such as GoDaddy or Akamai?

  15. People with nous still prosper. A degree in medja didn’t give your friends their abilities. It may have wasted several years of their life however and their money in repaying loans.
    Otherwise worthless degrees DO have a value of course in todays (IanB’s phrase) graduate manderinate where increasingly even worthless degrees are needed to get (but prob not to do) more and more jobs. That, in my book, is a bad not a good thing.

  16. if undermined in too many specific cases by PFI.

    I thought PFI was a rip-off from which the taxpayer fared badly. Now it’s the cause of private pensions not performing. Which is it?

  17. “I thought PFI was a rip-off from which the taxpayer fared badly. Now it’s the cause of private pensions not performing. Which is it?”

    Tim N makes a good point. Particularly when there are funds that invest in infrastructure.

  18. Mr Ecks – what is a worthless degree?
    Perhaps anything thats not engineering? Perhaps anything thats not chemistry? Perhaps anything to do with history, economics, politics, philosophy, physics, biology, design, art and so on.
    Unless you can guess what is worthwhile to an individual you cannot know what is worthless. I have a passion for particular aspects of history hence did the degree I did. From that a couple of years later I’m investigating a particular idea that intrigues me – something I’d find harder to do without that degree. Will take me the next 20+ years to investigate probably but to me its a good use of time. Is it worthwhile to me? Yes. Was the degree worth it? Yes. Is there anything to pay back? No. You’d be suprised what happens when not earning £15K+ these days.

  19. With the exception of physics and biology (which may lead to technological advance) all the degrees you list are worthless. You may enjoy those topics and if you are paying for your own education good luck and God bless. However none of those degrees should be subsidised by the taxpayer to the extent of even one penny.

    Also the “humanities” establishment in education is possibly the prime source of leftist propaganda and attempted brainwashing of youth. Which is why I would close all non-science university places, sack the uni teachers (and admin crew) without compensation and confiscate their pensions. All of which would save lots of cash and strike a huge blow against statism/socialism.

  20. Trying to decide whether Murphaloon in his Quaker pretensions is best compared to the earIy George Fox or James Nayler.

    Bring on the donkey and hosannas.

  21. re. the Maugham blog, that was absolute carnage.

    And the man is delusional on the “should I censor thread”:

    Trickie Dickie: The only reason you are having this discussion is that no one wanted to engage with the reality of the points I had to make: they wanted to play any other issue they could find.

    Unless you keep those who want to do so out of the comments section serious people will not want to engage in debate on this site.

    man’s barking, and deliciously un-self-aware.

  22. Abacab, it was carnage, and Jolyon didn’t exactly run to his support.

    Just wonder: Murph has been the go-to man whenever the papers or the Beeb need a comment from the left about tax. Up to now he’s had the job to himself.

    Is there a younger, smarter, more charming rival looking to knock the old buffoon off his perch?

    Was Tuesday’s effort a set up?

    Stay tuned.

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