LyrArc Article Gist
Is the UK government committed to keeping the triple lock on pensions that help pensioners, retirees, keep up with the cost of living. Liz Truss the UK prime minister waffles on this issue by first saying yes, then no, then yes. The US just announced social security payments to retirees will increase by 8.6% in 2023. The triple lock is a way of saying that pensions will be increased each year by the maximum of inflation or average earnings, and more than 2.5%. With inflation at over 10% UK pensions would be increased similar to the US, slightly higher by 10%. This is critical to meet needs of older Britons or Americans, and similar policies are being followed in France, Germany and other EU countries. Housing costs are rising very rapidly. This leaves less for food and heating. This means some older Britons or Americans are missing meals. In Britain a TUC report shows one of seven Britons missing meals because of income not keeping up with the cost of living crisis, which is now number one on people's minds.  ...

LyrArc Article Gist
The new budget in France is designed around two goals. The first is to take aggressive action to bring the deficit down to 3% by 2013, not a gradual program but one intended to send a strong message to capital markets that France under a Socialist government is dead serious when it comes to the deficit and debt reduction. Every 0.1% increase in France's borrowing rate would mean $260 million going into interest payments on the debt, according to Pierre Muscovici, the finance minister. France's borrowing rate is close to Germany's 1%, and the French are determined to keep it this way. The other goal was stated by Mr. Muscovici: "I don't want a policy of austerity, hitting salaries, weakening the state and turning it into a pauper." The idea being that hitting the common man would mean decline in consumer spending and lower growth and tax revenues that would create the kind of negative spiral facing Spain of declining growth and rising unemployment, worsening deficits, and higher debt payments. The way Muscovici raised the $39 billion- beyond the $9 billion in higher taxes and savings already implemented for 2012- is through $13 billion in new taxes on corporations, and additional $10 billion from new income taxes, including a higher tax rate of 45% on incomes over $193,000. Additional $13 billion will come from a freeze in public spending, so that some ministries take cuts adjusted for inflation keeping the overall budget the same. Spending cuts could come later to balance the budget as growth picks up to 2% in 2014, is the government reasoning, softening the impact. The new budget is well received by German public opinion as showing the resolve of Germany's key partner in the EU. Part of the reason the French are able to get business and people with higher incomes to contribute is that France is unique in that there is a greater consensus than in other countries on the steps needed and a sense that austerity measures targeting the middle class would be counterproductive. The aggressive action with considerations for equity and fairness also gives France the chance for a faster turnaround and avoid the problems plaguing Spain and Italy, which French public opinion and business appears to have grasped and the government's experienced ministers for the economy have successfully presented. ...