Katasonov: we won't have any pension system

2024 Author: Seth Attwood | [email protected]. Last modified: 2023-12-16 15:55

Russia does not need pension funds, but new jobs and enterprises that produce essential goods …

As reported, the Russian Ministry of Finance proposed to reduce budgetary spending on pensions in 2018. This follows from the draft amendments to the budget published on the federal portal of draft regulatory legal acts.

At the same time, the expenses of the Pension Fund of Russia (PFR) on the payment of pensions will grow this year by almost 99 billion rubles, and the transfer from the federal budget will be reduced by 68.3 billion rubles.

The reduction in budget spending on pensions this year was caused by an increase in the collection of insurance contributions to the Russian Pension Fund, and not by a decrease in the size of pensions, the Russian Ministry of Finance said.

According to RIA Novosti, 35% of employees are in favor of lowering the retirement age, and slightly more than half consider the existing bar optimal, the HeadHunter research service told RIA Novosti. At the same time, only six percent of respondents agree to raise the retirement age for the benefit of the Russian economy.

The crisis of the pension system in Russia reflects in an interview with "Russian Narodnaya Line" Doctor of Economics, Professor, Chairman of the Russian Economic Society. S. F. Sharapova Valentin Katasonov:

It is incorrect to compare Russia with Western countries, where the economy is structured in a completely different way. Of course, certain maneuvers can be carried out with the money of the pension fund and the budget, which are sent to the pension fund in the form of a transfer. However, in general, the pension system rests on the foundation of the real economy, because earning income for the pension fund from securities purchased in the global financial market is a dangerous game. Let me remind you that in the Soviet Union the pension system was completely different: pensions were paid from the budget, and the state planning commission and other government departments, first of all, were engaged in planning pensions based on the ratio of pensioners and working people in the economy. Therefore, now it is necessary to pay attention to this indicator.

In the Soviet economy, the volume of production of a real product increased, in contrast to modern Russia, where foam is growing - an indicator of the gross domestic product. GDP growth is not an increase in the physical volume of final products. Do not forget that we are in an economic war - the Russian economy is not self-sufficient. Therefore, I am afraid that if the economic sanctions are tightened, then there will be a shortage of vital products for both pensioners and working people. The state should put in the first place the creation of the foundation of the economy, on which the pension system, the military-industrial complex, the social sector, etc. should be built.

Reasoning about retirement is a "trishkin caftan", because there is a reduction in the production of real products. However, they are trying to instill in us the idea that there is enough of everything in the country, it is just that the products should be distributed more fairly, but everything depends on the price of “black gold” and natural gas on the world market. And if prices collapse tomorrow? The pension system needs to be discussed in the context of an economic strategy that has never existed and still does not exist. In its absence, the country will continue to degrade and I would venture to suggest that we will not have a pension system at all.

The Russian pension fund is structured in the image and likeness of many Western countries. The assets of the pension fund are various securities, some of which have nothing under them. Due to my experience and training, I am an Americanist, that is, I follow the US pension system most of all, where pension funds began to pour in, because they work exclusively with securities, which sometimes have a yield of 1-2%. In Europe, they work with securities with negative yields, so pension funds suffer continuous losses. Until recently, pension funds paid pensions from the profits of securities. Today, a third of government debt in the global financial market has a negative interest rate. The question arises: how are the authorities going to fulfill their obligations to pensioners? In America, non-state pension funds are pouring in. Of course, there are still certain mechanisms in place that make it possible not to leave people without money, but many American retirees are forced to adapt to the new situation, receiving half the original pension.

The history of retirement benefits does not go back to ancient times. The first pension system appeared in England, but you shouldn't think that it was a social project of British capitalism. No, it was a project of English bankers who, at the height of the industrial revolution, in the 20-30s of the 19th century, offered working people to put their money on deposits in a bank, so that 30 years after the end of their labor activity, they could feed themselves from deposit interest. This was the first pension system in the history of mankind.

Then this mechanism was turned into a state system, but a completely different pension mechanism was created in the Soviet Union - pensions were paid from budget money, which was planned based on the ratio of workers and labor veterans. In the coming years, the number of pensioners will increase, and the number of working people will be much smaller. In addition, there is massive unemployment in the country.

In the summer of 2016, Donald Trump began to talk about things that the American media are usually silent about - there are more than a hundred million unemployed in America. With such unemployment, it is difficult to ensure the payment of a decent pension. Therefore, many Americans are surviving on social benefits, which are being reduced. The Western world is already becoming obsolete. There is almost no capitalism, for capitalism is where there is profit. But today, income disappears like morning fog. But then it is not clear what the pension provision will be based on, which has always been realized at the expense of profit. But this capitalist system is becoming obsolete, so soon there will be no pensions either.

We are witnessing the death throes of the pension system all over the world, even in such a prosperous country as America. But the American "paradise" is deceiving and illusory. The US pension system is still supported only by receiving money from all over the world. But this system is becoming obsolete. We actually pay the US military and pension costs, while this money should be directed to the maintenance of our elderly. We do not need pension funds that have formed portfolios of securities, but new jobs and businesses that produce essential goods. And if an economic blockade is established, then we may die of hunger, because the country does not have the provision of basic necessities of life. You need to think hard about this and channel money into this industry, and not think about how to optimize the Central Bank's securities portfolio. It is necessary to build factories that produce not Coca-Cola, but essential food and clothing.