http://www.economist.com/blogs/freeexchange/2015/01/britains-elderly
This article discusses the current situation revolving around Britain and the pensioners of Britain. The article talks about how those citizens who have gotten pension are a protected class with a lot of benefits. First, these individuals do not have to pay national insurance and they receive free benefits like bus travel and cable access. The article also goes on to talk about how, even though this class has a lot of benefits, they are in fact in a worse situation than the working class because they do not have disposable income. The article then goes on to talk about how even though these pensioners are in a worse place when it comes to disposable income, they are in a better position when it comes to private income. The article ultimately shows readers how currently, in Britain, there is an issue with income distribution and they question whether or not they should give benefits to those pensioners or other classes.
1 comment:
According to this article, the only way to cut this huge gap is to count the pension as private income and use a measure of income which does not adjust for household size. However, when comparing fair re-distributive policies, household size is very important. I don't see a situation where the pensioners would be happy with the this cut in the gap. It will be interesting to see how this plays out
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