The following figures are all from a Treasury Report, Affording Our Future 2013:
Of course, most of the people reading this blog won't be around in 2060. But our children will be.
Treasury suggests as responses:
• Government taxes more as a percentage of GDP than it does currently.How come they didn't suggest growing GDP at a faster rate?
• Government restricts spending growth in some areas, relative to historical growth rates. Spending in a particular area may still grow as a percentage of GDP, but not as much as it could grow.
• Government reacts to demographic change. Because one of the major drivers behind future financial pressures is population ageing, services are redefined to compensate for the fact that people are living longer, healthier lives.
Anyway, the message is,
"No matter what policy changes we decide on, it is important that we decide on them early. Fiscal pressures are already starting to build, and the sooner we can address them the easier it will be. The next step in managing fiscal pressures is deciding what choices we will make to achieve a prudent level of government debt by the end of this decade and maintaining it beyond that date."Just what Greece failed to do.
And my impression is NZ isn't making any hard decisions either.