Free Market Road Show 2013 | José Piñera

662 views

Published on

AEC, KI a INESS v spolupráci s ďalšími partnermi organizovali medzinárodnú
konferenciu v rámci Free Market Road Show 2013 na tému Šetriť alebo
nešetriť: Zachránia Európu len úsporné opatrenia?, ktorá sa konala dňa 7.
júna 2013 v Bratislave. Ďalšie súvisiace informácie nájdete na
www.konzervativizmus.sk


AEC, in cooperation with the Conservative Institute and INESS, and in
association with international partners organized the Free Market Road
Show 2013 in Bratislava on June 7, 2013. More information at
www.institute.sk.

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Free Market Road Show 2013 | José Piñera

  1. 1. Source: Jagadeesh Gokhale, Measuring the Unfunded Obligations of European CountriesPolicy Report No. 23 January 2009, National Center for Policy AnalysisTHE TRUE DEBT OF EUROPE(Official + Pension + Health + Welfare; as % of GNP)Greece 875%France 549%United Kingdom 442%Germany 418%Italy 364%EU 25 434%
  2. 2. YouthUnemploymentin EuropeGerman Finance MinisterWolfgang Schäuble warnedthat failure to win the battleagainst youthunemployment could tearEurope apart, and droppingthe continents welfaremodel would spark arevolution.(Reuters, May 28, 2013)
  3. 3. The father of the welfare state,destroyed the crucial link betweeneffort and reward.Results:• Political manipulation,• Demographic impossibility and• Fiscal disaster.Reich Chancellor Bismarck
  4. 4. CHILE 80: PARADIGM SHIFT• Every worker has a mandatory personal retirement account, saves monthly10% of his wage (substituted payroll tax), and benefit from power ofcompound interest.• At retirement: life annuity, programmed withdrawal, or mix. “Retirement” isredefined to enhance personal choices (age, benefit level, inheritance).• System managed by competitive private companies. Workers chooseamong 5 mutual funds, with highly diversified portfolios.• Role of government: market-friendly regulation, technical supervision, andsafety net paid with general tax revenues. Zero payroll tax.
  5. 5. THE TRANSITION: It can be done• Guarantee benefits to retired people, i.e. protect yourgrandmother’s check.• Voluntary opt out, with recognition bond, for current workers.PRA system for new entrants to labor force. Old systemfades away.• Transition financing different in each country.• Key requirement: educate the citizens. Intensive use ofmedia. Keep it simple.

×