Education, Education and the Family, Education and the Marketplace, Education and the State, Home-Based Education

Home-based education, entrepreurship and the Old Age Pension

At a workshop that I attended, which was conducted to develop Financial Literacy curriculum for Australian schools, Paul Clitheroe made the following comment:

We are living in a time unprecedented in history, where it is so easy to spend far more than we earn.  This has not been the case in most of history.  This also includes spending beyond our earning years.  The Old Age Pension commenced in 1908, and was designed to be paid to those who lived up to 2 years beyond their life expectancy.  Most men did not live beyond the age of 60, at that time.  Over the past one hundred years, life expectancy has increased by 25 years.  This means that the government-promise of supporting some people for a maximum of two years after they have finished being financially productive, has now ballooned out to a promise to support most people for up to 25 years after they have stopped being tax-payers.  This situation is totally unsustainable.  Eventually the pension age will have to be pushed out to age 90 because there will not be the capacity to pay pensions in the future (Clitheroe, 9th August, 2012).

This is not fear-mongering, it is economic fact.  No amount of claiming rights will change the facts.  Growing numbers of non-working tax recipients will eventually outnumber a shrinking pool of tax payers.  At the cross-over, tax payers will have to pay 100%  of their earnings to support the non tax payers, and after that, … ?  Succeeding Governments did not save the tax money paid by workers over their working lives.  They spent the money on other projects.  There is a shrinking taxation base, because more and more Australians are either being aborted before birth, marrying later and later (and therefore having less and less children per married couple), or entering relationships that are sterile (LGBT relationships).  Receiving a pension is not a right, it never has been, and never can be.  It was always a ponzi scheme*.

Home-based education must include entrepreneurship and economic independence.  Dependence upon others to provide a job is a risky business.  Maintaining a good relationship with your children is also a critical part of home-based education.  It may literally mean life or death, when governments are looking for ways to solve the problem of a logarithmically increasing number of non-working pension recipients.

References

https://www.google.com.au/?gws_rd=ssl#q=ponzi+scheme+definition Accessed: Thu 16/10/2014 18:32

* Ponzi schemeˈpɒnzi/noun
noun: Ponzi scheme; plural noun: Ponzi schemes
  1. a form of fraud in which belief in the success of a non-existent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.
    “a classic Ponzi scheme built on treachery and lies”
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