The Economist calls this capitalism. Is it?

[^_^ 5,021]

If employers were required to contribute a sum equal to 9% of an employee's wages into a retirement account for the employee, I am sure (some) Americans would decry it as socialist.

Yet, Australia has that in place and a publication that can be expected to know a lot about capitalism calls it capitalist.

Your thoughts?

In 1992 the Keating government made it mandatory for employers to pay a proportion of the wages of all but the very lowest-paid workers into a superannuation account. The payment, which was tax-deductible, was to rise in annual steps to 9%, where it is today, though by 2019 it should be 12%. Employees choose the funds that receive their payments.

The upshot is that most Australian workers, over 8m in total, now have a private nest-egg for their old age. No tax is paid when members withdraw from their fund; they can take all they want as a lump sum, subject to a limit, or buy an annuity. Aussies are now a nation of capitalists.

The [superannuation accounts] have not pushed up the savings rate, but nor have they increased unit labour costs. Instead, they have created a pool of capital in Australia that might not otherwise have existed. Collectively worth about $1.3 trillion—much the same as GDP—they have made Australia the world’s fourth-largest market for pension savings.

http://www.economist.com/node/18719616?story_id=18719616&fsrc=fb/wl/ar/superdupersupers

Edited May 30, 2011 by \

[one...two...tree 2,762]

We can't we do something like that?

[Vi-Jay 218]

We can't we do something like that?

Partial Privatization of Social Security. Google it.

You creepy DFH.

Edited May 30, 2011 by Vi-Jay

[Ban Hammer 13,491]

We can't we do something like that?

you can. move to australia and be booyah's neighbor.

[wshc 46]

If employers were required to contribute a sum equal to 9% of an employee's wages into a retirement account for the employee, I am sure (some) Americans would decry it as socialist.

Yet, Australia has that in place and a publication that can be expected to know a lot about capitalism calls it capitalist.

Your thoughts?

Yes Americans would call that socialism. No it is not socialism. This is called Social Security in this country, so what is the news about it? It might be in a different form, but that is basically what it is.

Realistic Capitalists realize that there are dues to pay to be part of a collective society such as the US. Intelligent Capitalist wants to try and improve the return on these mandatory dues using various methods, such as privatization. These ideas are often met with resistance and the ideas are used as a political football with the intent of propagating more class warfare.