More on German Privatization of Social Security

Johannes Schneider Johannes.Schneider at gmx.net
Thu Sep 28 04:39:58 PDT 2000


John K. Taber wrote:


> This is from the Financial Times. You have to poke around
> a little to find it at http://www.ft.com/
>
> Note that in the second article, the German investment
> industry is very unhappy with a provision in the privatization
> proposals that any investment to be qualified must guarantee
> at least as much money in retirement as is put in by
> the worker, and must pay life-long benefits. Very unhappy
> about that, I shouldn't wonder.

There are always people who get more greedy after beeing fed. What do they expect, let people play at NASDAQ, loose all their money and live on social security? After all the qualification to receive at least the money you paid in is really ridiculous. What do you think you can buy in 40 years for a thousand DM you paid in today?


> And this also from the Financial Times ...
>
>
> German reform 'to boost pensions'
> By Ralph Atkins in Berlin
> Published: September 26 2000 17:32GMT
>
> Private provision would be voluntary but Berlin officials assume about
> 90 per cent of the 35m people currently paying into the state system
> would eventually set up additional private provision.
>

While most of the two FT articles are at least informative, I doubt this assumption. Common people simply dont have the extra money to pay for the additional private provision.

Johannes



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