Episode 14 of my – Podcast – Letter from The Cape – is now available.
In this episode, we consider the so-called Intergenerational Report, which the Australian government released this week. These Reports are released every few years and are designed to scare us into believing that unless the government cuts spending and services now it will run out of money and hike taxes in the future as more people retire and require medical care and pension support. The problem with this exercise is that it addresses the wrong problem. An ageing society presents a productivity problem rather than a financial one for government. The future generation has to be more productive than the last and that requires significant investment now in education and training – exactly the opposite to what the government is doing.
Duration: 6:55
