Pension promises have been made that cannot possibly be met. A revolt is underway in France. What about the US?

Macron’s Pension Gambit Sparks Revolt, Pushing France to the Brink

Bloomberg reports Macron’s Pension Gambit Sparks Revolt, Pushing France to the Brink

The French President is facing increasingly violent protests that risk scaring off the investors he has spent the past six years courting.

It’s the stuff of nightmares for those who promote the new, dynamic France: Giant mounds of stinking garbage bags overflow from bins near the Notre-Dame cathedral in the heart of Paris, violent demonstrators in Bordeaux set fire to the majestic doors of City Hall and teargas-laced battles break out in major cities between ranks of riot police and protesters who set alight whatever they can lay their hands on.

Such images flashing on television screens across the globe show a country set back to its demons of angry street protests that brought political crises and economic inertia to successive French presidents. And the trigger for this latest regression is the architect of change: Emmanuel Macron, whose stubborn insistence on ramming through an increase in the retirement age reignited labor unrest, deepened fissures in parliament, nearly brought down his government and now threatens paralysis for the four remaining years he gets to stay in office.

 

What Happened?

President Emmanuel Macron upped the retirement age from 62 to 64 and placed further restrictions on collecting a full pension.  

He did this unilaterally, by decree.

Under the French constitution, the president can enact laws without a vote in Parliament if he can survive a vote of no confidence. 

Macron barely survived a vote of no-confidence by just nine votes. 278 voted in favor, with 287 needed. 

Explaining the Issue

Where Socialism Leads Disaster Follows

Calls to Resign 

Economic Illiterates Support the Protests 

The number of economic illiterates on Twitter in support of these riots is stunning. 

Why the French Are Angry About a Plan to Retire at 64

Please consider Why the French Are Angry About a Plan to Retire at 64

The world’s population of people aged 60 years and older is expected to double by 2050, according to the World Health Organization, while fertility rates are in long-term decline. The financial strain is challenging old-age support systems and leaving many countries facing tough choices about raising the age of retirement, cutting benefits or lifting taxes. Pension shortfalls will be the equivalent of about 23% of world output by 2050, the Group of 30 consultancy estimated. One key measure is the old-age dependency ratio — the number of older people compared to the population that is working age. In Europe and North America, that ratio will be about 50 per 100 by 2050, according to UN forecasts, a rise from 30 per 100 in 2019. In short, we’re on a trajectory toward a smaller share of people paying taxes and a higher proportion drawing pensions. By 2035, the basic US system known as Social Security will no longer be able to cover payments, forcing a 20% reduction in benefits, according to its trustees. 

US Social Security 

By 2035, the basic US system known as Social Security will no longer be able to cover payments, forcing a 20% reduction in benefits, according to its trustees.

That is hardly the worst of it. 

Many public union pension plans in the US, especially politically corrupt states like Illinois, are realistically insolvent.

Yet, the fools in Illinois voted to enshrine pension promises in the constitution. 

So yes, France is a prelude to what's going to happen in the US. 

More By This Author:

The Implausibility Of A Net Zero Carbon Energy Future Is Now Obvious
Mattresses, Social Media, Smart Phones, And Failure Of The Fed
Durable Goods New Orders Decline For The Second Time In Three Months