The Political Economy of Pension Provision

HOP 2. The Political Economy of Pension Provision

Alan Peacock, Norman Barry

These papers were first presented at a Conference on Pensions arranged by The David Hume Institute which took place in Edinburgh in June 1985 but have been modified in the light of the government's White Paper which appeared in December 1985.

Professor Peacock's paper argues that the debate has concentrated too narrowly on the provision of pensions rather than on the provision for retirement and that the government's own arguments point towards the complete abolition of the State Earnings Related Pension Scheme (SERPS) coupled with the raising of the basic pension.

Professor Barry's paper argues that the 'consensus' over SERPS is a convenient myth perpetuated by the interest groups seeking to maximise the utility of their members by an ever growing public sector. The fact that the British system of government helps to create such groups results in a legacy of problems, such as the burden of pensions, which are virtually insoluble; any major changes in policy impose significant costs on those affected by such changes.

What to do about the over-valued dollar

HOP 1. What to do about the over-valued dollar

Ronald McKinnon

In 1985 the US dollar was over-valued by as much as 30 to 40 percent when measured against European currencies and about 20 percent against the Japanese yen. This imposed undue competitive pressure and great distress across a broad spectrum of American farming, mining and manufacturing activities and pressure to restrict imports is rapidly increasing. Professor McKinnon explores what can be done about it.