Sunday, April 12, 2009

Extrapolation is fun

By 2100 the unemployment benefit will be worth less than one-fifth of the pension, with the rules the way they are.

(Assuming 2.5 per cent unemployment benefit growth, 4 per cent pension growth)

John Quiggin is fond of quoting Herbert Stein's Law, which is:

"If something cannot go on forever, it will stop."

So I predict that this unhealthy, unsustainable farce will stop; most likely as soon as May 12 when Rudd and Swan bring down their Budget.


Anonymous said...

Perhaps you'll be right. However, I remember people saying this "farce" could not go on when it looked like the partnered rate of pension was going to overtake the single rate of Newstart allowance. When it did there was not a whimper.

These days the partnered pension rate is about $25 a fortnight more than single Newstart.

Don't hold your breath.

- spog

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