The incompatibility of compulsory superannuation with economic realities has not emerged to date because of favorable demographics, asset price inflation, limited withdrawals, and the psychological detachment of savers from market risks. However, this fragile equilibrium depends on continuous inflows, favorable market conditions, and low inflation. As these conditions shift, the system’s vulnerabilities will likely become more apparent, necessitating significant reforms to ensure its long-term viability.
Australia's superannuation system channels massive income flows into financial markets, increasing the demand for and price of financial assets like shares and real estate. Asset holders benefit disproportionately, while workers contribute to a system that drives up the cost of living. Why aren’t super funds required to invest in productive infrastructure rather than financial speculation? For example, why doesn’t the Government create incentives for funding renewable energy projects, public transport, or affordable housing?
The government promotes compulsory superannuation by framing super as a cornerstone of economic security but its reliance on financial markets entrenches wealth domination and distracts from sustainable development by obscuring its role in entrenching, diverting capital from productive sectors and exacerbating wealth inequality?
The incompatibility of compulsory superannuation with economic realities has not emerged to date because of favorable demographics, asset price inflation, limited withdrawals, and the psychological detachment of savers from market risks. However, this fragile equilibrium depends on continuous inflows, favorable market conditions, and low inflation. As these conditions shift, the system’s vulnerabilities will likely become more apparent, necessitating significant reforms to ensure its long-term viability.
Australia's superannuation system channels massive income flows into financial markets, increasing the demand for and price of financial assets like shares and real estate. Asset holders benefit disproportionately, while workers contribute to a system that drives up the cost of living. Why aren’t super funds required to invest in productive infrastructure rather than financial speculation? For example, why doesn’t the Government create incentives for funding renewable energy projects, public transport, or affordable housing?
The government promotes compulsory superannuation by framing super as a cornerstone of economic security but its reliance on financial markets entrenches wealth domination and distracts from sustainable development by obscuring its role in entrenching, diverting capital from productive sectors and exacerbating wealth inequality?