The French government is considering a major overhaul of its pension system. This isn't just about numbers and budgets. It's about power and politics. A group of experts from a massive American finance company, BlackRock, have shared their ideas. They want to change how pensions work. Instead of the government handling it, they suggest a system where everyone has to put money into private funds. This is called capitalisation. It's a big deal. BlackRock is huge. They manage more money than many countries spend in a year. That's a lot of influence. But should a private company have so much say in how a country takes care of its elderly? That's the real question.

The idea of capitalisation isn't new. The UK tried it. The results weren't great. Retirement incomes dropped by a lot. Some people lost 20% of their income. Others lost 40%. That's a big hit. But the UK's experience shows that this isn't just about money. It's about politics too. Governments today often follow neoliberal ideas. These ideas say that private companies can do things better than the government. But is that true for pensions? That's what needs to be asked. The French government has to think about this carefully. They need to look at the facts. They need to think about what's best for the people. Not just the profits of a big company. The future of many people's retirement is at stake. It's a big responsibility. The government needs to make the right choice. The people of France deserve it.

POLITICAL ECONOMIC FORCES

The Big Shift: Pensions and Politics

Continue reading...