John Müller: ‘Boomer’ Denialism


Madrid

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Surely Minister Escrivá, who is a ‘boomer’ (he was born in 1960), has taken a rap for telling the truth when he was not playing. “Baby ‘boomers’ will be able to choose between a small adjustment in their pension or they will be able to work something more,” he said the same day that Sánchez expressed his chest about the pact on the easy part of the pension reform (readjust its value with the CPI and postpone the sacrifices until it is up to others). But, watch out for the minister’s rectification (“I didn’t have the best day”): the bad was the day, not what was said.

As the director of ABC said on Saturday, “Escrivá was not lying.” And he aptly summed up the fears of the ‘boomers’: if things are done well, their pension will be worse than it is now, and if they are done badly or not, they are in real danger. Among the things that are being done wrong, an important one is that Spaniards are not encouraged to save to retire outside of Social Security without being looted due to lack of competition or legal uncertainty. Escrivá has allowed the deductible cap on personal income tax to drop to 2,000 euros based on a report from AIReF (which he presided over) that pointed out the imperfections of the system, but did not claim that saving outside of Social Security was undesirable. Right now, there is practically no public incentive for people to save in the long term.

Over the weekend, the video of an anti-fascist truck driver whose name is @bulldog_punk went viral on the social network Twitter, in which he stated that he had paid his pension because he has been contributing since he was 16 years old and criticized that politicians «are 40 or 35 years playing with our money and then say that there are no people to pay us. The video was a mixture of misconceptions and righteous outrage that confronts us with the harsh reality: the vast majority of people do not know how our system works. In fact, there are still people in Spain who continue to think that Health is paid with Social Security contributions, something that stopped happening in 1999.

The first thing @bulldog_punk has to know is that his contribution has paid the pensions of democracy (including that of his father, which probably exceeded in cost everything he contributed in his life). Therefore, your contribution is money that no longer exists, a mere accounting entry, an invoice receivable in the future. The problem here is not only that the ‘boomer’ generation is too “wide”, as Escrivá says, it is also that the system has been very generous, centrifuging the moral hazard of previous generations that contributed less (as Brussels has always reminded us ). Now, when it must compensate those who have contributed a lot, the State finds itself with half-empty pockets. [email protected]

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