What will life in NZ be like for your kids?
The debt to GDP ratio is likely to balloon out to well over 200 per cent of GDP by 2050, and that's using assumptions for productivity, credit ratings and interest rates based on recent experience. A debt level that high would of course force our credit rating lower and our interest rates up.
A 300 per cent debt to GDP ratio is possible. This is obviously unsustainable with the current policies.
Those 20-30 year olds graduating into the workforce now can look forward to working much longer than their parents and paying much higher taxes than their parents. That's unless their parents choose now to increase the pensionable age, reduce the value of the pension from its current 66 per cent of median wages, start rationing healthcare and save a lot more for their retirement.
Why aren't our political leaders, especially our PM, planning for this with policies put in place now that will ensure our kids in 2050 can afford healthcare; will have an adequate retirement income; and will have the quality of life that their paid taxes over forty years demand?
When will they stop tinkering at the edges and cut to the core?
We badly need politicians in parliament who don't give a stuff about being their long term. We need a core of about 10-12, enough to ensure a majority in Cabinet, who will enact massive structural reform in tax, health, education and superannuation and then leave without a care in the world about being re-elected.
Otherwise the rich will get richer and the poor will get poorer up until 2050 and then we'll have a crisis on our hands. The great shame then will be that people like me (in a retirement village somewhere) will get on talkback and tell the hosts it was all predicted 30 years ago but no one did anything about it. That will be a travesty.