The human being likes to behave like the caricature of the ostrich. We think that if we bury our heads in the sand and let time pass, we get the problems solved on their own.

It is a natural inertia. We only get out of immobility when we are forced to do so. Unfortunately, as a rule, these changes are painful because they force you to step in the dark … hence it is important to reflect, analyze, discuss, so that you can make informed and fair decisions.

We Must Take Options … As Painful as They May Be

We Must Take Options ... As Painful as They May Be

All this to talk about the real and imperative need to take political options (forcing social consensus) to make Social Security sustainable. So that is fair to all.

In this discussion, knowing elementary notions of mathematics and logic and understanding how the current model works are essential ingredients for serious discussion.

Assets Pay Retired

Assets Pay Retired

The model of reforms we know consists of the logic of the workers in the active pay (through social contributions, not taxes) the reforms of those who preceded them. This model works when we have more active people than reformed people. Here the demography does not play in our favor.

In general terms, we live for more years, we have fewer children, we have an economy that destroys value and a rampant public and private indebtedness. We are told that economic growth is the solution, but far from it … it is a palliative, which only postpones an inescapable problem.

For us to have an idea, in a few years’ time, more retired than active workers … this means that our taxes (not social contributions) will increasingly have to be “fun” to support the reforms … even to say that we will have less and less money for other priorities (as legitimate as reforms). Again, it’s all about options …

An Unworthy Model Of Trust?

An Unworthy Model Of Trust?

It is becoming increasingly clear that there are very few people who rely on this model. And if a model that is nothing more than a contract between generations (but has shown itself to be a PPP for future generations) does not enjoy trust … it is a model that is condemned to retirement. We can continue whistling to the side but something has to be done!

What to do?

What to do?

Unable to control the public debate, we must start saving. And unfortunately the days are not for that. Household savings have dropped significantly, being at the lowest values ​​since there is a memory.

But you have to save. Cut costs. And start forming a PPR or other savings account. The later we begin, the greater the sacrifices required.