Let’s be blunt: most people think of a pension as their retirement income paid for from a pool of funds. That’s the appearance, i agree. But the substance is something quite different.
Pensions are a mechanism for transferring property rights: between generations and from the owners of capital to the suppliers of labour.
Umm, this looks bass akwards to me.
Now I agree, whether the pension is paid from a direct tax upon today\’s workers, or it\’s from bond income, interest on loans or that part of profits which are dividends, whatever is going to today\’s pensioners is coming from today\’s suppliers of labour.
But, as a pensioner you are in fact more akin to a rentier or owner of capital. Your pension is paid from the surplus of the current generation supplying labour.
So it is actually a transfer from the suppliers of labour to the owners of capital, no?