My dear impertinent ones, dear impertinent ones,
Let's be fair to François Bayrou. He is one of the only ones, alongside François Fillon, who had the courage to talk about the debt.
During his general policy speech the most relevant part was undoubtedly the passage below on debt.
Well, once Bayrou gave us an observation completely known to all those who look at the situation with open eyes, he unfortunately said nothing more about how to correct the problem.
What is the problem you tell me?
Simple.
We pay current (not future) pensions with money not from contributions which are not sufficient, not from taxes which are not sufficient, but from debt.
We borrow 50 to 60 billion euros per year to pay for current pensions because the pension problem is now.
It's not for future generations, it's for current retirees.
I'm not telling you that they didn't deserve their retirements. I tell you there is no money to pay them.
So in economy on arrival things are always simple.
Either we stop paying such amounts of pensions and reduce pensions, or we continue to borrow to pay them and we will go bankrupt within 2 to 5 years, or we increase taxes or contributions on assets and companies to pay these pensions and we will stifle the economy and therefore go bankrupt in two or three years.
Simple.
When there is not enough money there is not enough money.
When the boxes are empty, they are empty.
There is no such thing as free money.
The money that some people receive is always paid by others.
You cannot sustainably give more without making others pay more.
When others can no longer pay more (taxes and contributions) and others no longer want to lend you money (creditors and lenders), then common sense returns very quickly.
-You can only pay retirees what you have in hand.
As far as I'm concerned, I think the system should be as follows.
1 basic pension by distribution. 1 supplementary pension by voluntary capitalization with tax reduction.
The right to leave at age 60 after having contributed for at least 30 years. By leaving at 60 the rate would be considerably reduced, but it is a personal choice. To have a full rate it is 43 annuities; at 30 years your pension would be very low, but it is a choice.
Finally, the last rule is that the retirement system should not be allowed to go into debt. It must necessarily be financed. If there is not enough contribution, pensions are reduced proportionally to what is lacking until the system is balanced.
It's not funny. It's hard. It's difficult.
But there is no magic money.
The money that some people receive is always paid by others.
Socialism, which consists of being generous with other people's money by taking credit for it, always limits the availability of other people's money. Socialism always ends when it has ruined and taken all the money from others.
We have arrived at this point.
It's already too late, but all is not lost.
Get ready!
Charles SANNAT
“Insolentiae” means “impertinence” in Latin
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