Thousands of demonstrators, most of them unionists, filled Paris' streets on Wednesday (January 29) in protest of the French government's planned pensions overhaul, claiming the movement has fallen to President Emmanuel Macron's deaf ears.

Thousands march in Paris against pension reform as support for movement stays strong

French officials prepared to restart talks with unions Tuesday over a <a href="https://www.wionews.com/world/anti-pension-reforms-protests-police-fire-tear-gas-at-protesters-in-france-271732">pension overhaul</a> that has sparked the country's longest transport strikes in decades, which labour leaders say could force millions of people to retire later than they thought.

Public support appears to be shifting in the government's favour, with just 44 per cent backing the strike in an Ifop poll released Sunday, down seven points from the previous survey on December 19-20.

The reform would eliminate 42 separate pension schemes that offer early retirement and other advantages, mainly to public-sector workers, in favour of a single system.

It would also create a "pivot age" of 64 to benefit from a full pension, penalising those who stop working at the official retirement age of 62 -- one of the lowest in Europe.

The government insists the measure is necessary for ensuring sufficient financing for the deficit-plagued system.&nbsp;

Yet officials have seized on an offer by France's largest union, the moderate CFDT, to hold separate talks on how to finance the plan later, in order to end the impasse over the pivot age.

"That's a very good idea," Finance Minister Bruno Le Maire said Monday. "Never has a compromise seemed so close."

Also read:&nbsp;<a href="https://www.wionews.com/world/anti-pension-reforms-protests-police-fire-tear-gas-at-protesters-in-france-271732">Anti-pension reforms protests: Police fire tear gas at protesters in France</a>

But the hard-line CGT and Force Ouvriere unions have vowed to derail the plan, urging a new day of mass walkouts against the reform on Thursday, which could see schools shut and public transport even more impacted than usual.

Train operator SNCF says it has lost more than 600 million euros ($670 million) in ticket sales since the strike began on December 5, and Paris commutes have been headaches for millions who rely on the RATP's metro, bus and suburban rail lines.

Watch: Mass demonstration break out at Paris protest against pension reform

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'We have to hold out'

The CGT has stepped up its protest with a four-day <a href="https://www.wionews.com/world/france-continues-to-be-on-the-boil-over-proposed-pension-reforms-270795">blockade of refineries and fuel depots</a> starting Tuesday, raising the prospect of petrol shortages.

Nurses, physiotherapists and lawyers, among dozens of professions with their own advantageous pension regimes, have also voted for strike actions this week.

But the number of striking rail and metro workers tapered off over the holidays, and the lost pay could make it hard to keep up the protest.

"It's going to be hard but we have to hold out at least until Friday," Mounir, an RATP employee, said Monday as drivers voted to prolong the strike.

Unions say they are relying on reserve funds and donations to limit the financial hit for strikers, in what has been France's longest continuous train strike since the national rail service was created in the 1930s.

President Emmanuel Macron made the <a href="https://www.wionews.com/world/survivors-tell-of-frances-dirty-war-in-cameroon-independence-270740">pensions overhaul</a> a key plank in his 2017 election campaign, saying a single points-based system would be fairer to&nbsp;women and low-earners in particular.

The government has already made a series of concessions to police and military personnel as well as SNCF workers, allowing them to continue retiring early or keep their separate benefits for several years yet.

But most salaried workers born in 1975 or later would be impacted by the new system, in which people would earn points based on their lifetime earnings, which would be converted into pension payouts upon retirement.

Currently, most pensions are calculated from a worker's 25 best years of earnings -- public workers, however, get payouts based on their last six months of pay, a more favourable base.

An Elabe poll released Monday found that most French (54 percent) support the points-based plan, though two-thirds oppose the pivot age of 64.

French officials prepared to restart talks with unions Tuesday over a pension overhaul that has sparked the country's longest transport strikes in decades, which labour leaders say could force millions of people to retire later than they thought.

French officials prepared to restart talks with unions Tuesday over a pension overhaul that has sparked the country's longest transport strikes in decades, which labour leaders say could force millions of people to retire later than they thought. Public support appears to be shifting in the government's favour, with just 44 per cent backing the strike in an Ifop poll released Sunday, down seven points from the previous survey on December 19-20. The reform would eliminate 42 separate pension schemes that offer early retirement and other advantages, mainly to public-sector workers, in favour of a single system. It would also create a "pivot age" of 64 to benefit from a full pension, penalising those who stop working at the official retirement age of 62 -- one of the lowest in Europe. The government insists the measure is necessary for ensuring sufficient financing for the deficit-plagued system. Yet officials have seized on an offer by France's largest union, the moderate CFDT, to hold separate talks on how to finance the plan later, in order to end the impasse over the pivot age. "That's a very good idea," Finance Minister Bruno Le Maire said Monday. "Never has a compromise seemed so close." Also read: Anti-pension reforms protests: Police fire tear gas at protesters in France But the hard-line CGT and Force Ouvriere unions have vowed to derail the plan, urging a new day of mass walkouts against the reform on Thursday, which could see schools shut and public transport even more impacted than usual. Train operator SNCF says it has lost more than 600 million euros ($670 million) in ticket sales since the strike began on December 5, and Paris commutes have been headaches for millions who rely on the RATP's metro, bus and suburban rail lines. Watch: Mass demonstration break out at Paris protest against pension reform 'We have to hold out' The CGT has stepped up its protest with a four-day blockade of refineries and fuel depots starting Tuesday, raising the prospect of petrol shortages. Nurses, physiotherapists and lawyers, among dozens of professions with their own advantageous pension regimes, have also voted for strike actions this week. But the number of striking rail and metro workers tapered off over the holidays, and the lost pay could make it hard to keep up the protest. "It's going to be hard but we have to hold out at least until Friday," Mounir, an RATP employee, said Monday as drivers voted to prolong the strike. Unions say they are relying on reserve funds and donations to limit the financial hit for strikers, in what has been France's longest continuous train strike since the national rail service was created in the 1930s. President Emmanuel Macron made the pensions overhaul a key plank in his 2017 election campaign, saying a single points-based system would be fairer to women and low-earners in particular. The government has already made a series of concessions to police and military personnel as well as SNCF workers, allowing them to continue retiring early or keep their separate benefits for several years yet. But most salaried workers born in 1975 or later would be impacted by the new system, in which people would earn points based on their lifetime earnings, which would be converted into pension payouts upon retirement. Currently, most pensions are calculated from a worker's 25 best years of earnings -- public workers, however, get payouts based on their last six months of pay, a more favourable base. An Elabe poll released Monday found that most French (54 percent) support the points-based plan, though two-thirds oppose the pivot age of 64.

France: Government seeks to end unrest by resuming pension talks

<a href="https://www.wionews.com/world/strike-makes-for-not-so-merry-christmas-travel-in-france-269597">Protests continue to soar</a> in France as demonstrators today got into a scuffle with the police. The events unfolded at the Gare de Lyon station in Paris.&nbsp;

People have been protesting against the plans by French President Emmanuel Macron to change the country's pension system.&nbsp;

According to a French TV station ''BFM'', the riot police got into an altercation with around 30 protesters at one of the busiest stations in Paris.

Watch:&nbsp;France Protests -&nbsp;Protest against pension reforms

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/france-protests-protest-against-pension-reforms-266756/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Protesters ticked off flares and fireworks, which releases smoke that heaved the whole station.

Due to the <a href="https://www.wionews.com/world/frances-macron-to-give-up-presidential-pension-in-reform-gesture-269578">ongoing protests</a>, many stations in Paris have been affected. These include Gare du Nord, which takes care of the Eurostar services to London and Brussels, as well as the Gare de l'Est.

"I understand (the strike) but I am not OK with it as I think all French people are being held hostage and it is difficult for us to understand what the goal is," a commuter told Reuters at the Gare de L'Est station.

France has witnessed two weeks of nationwide industrial action against Macron's pension reform. If the reform is set into motion, &nbsp;special pensions for many public sector staff would be scrapped. This would effectively make people work until 64 to draw a full pension.

French PM Emmanuel Macron recently announced that he would forego a presidential pension payout after stepping down.&nbsp;

France's oil sector workers are also expected to vote in favour of shutting down oil refineries as <a href="https://www.wionews.com/world/hundreds-of-thousands-protest-in-france-over-pension-reform-plans-268811">part of the protest</a>.

(With inputs from agencies)

Protests continue to soar in France as demonstrators today got into a scuffle with the police. The events unfolded at the Gare de Lyon station in Paris. People have been protesting against the plans by French President Emmanuel Macron to change the country's pension system.

Protests continue to soar in France as demonstrators today got into a scuffle with the police. The events unfolded at the Gare de Lyon station in Paris. People have been protesting against the plans by French President Emmanuel Macron to change the country's pension system. According to a French TV station ''BFM'', the riot police got into an altercation with around 30 protesters at one of the busiest stations in Paris. Watch: France Protests - Protest against pension reforms Protesters ticked off flares and fireworks, which releases smoke that heaved the whole station. Due to the ongoing protests, many stations in Paris have been affected. These include Gare du Nord, which takes care of the Eurostar services to London and Brussels, as well as the Gare de l'Est. "I understand (the strike) but I am not OK with it as I think all French people are being held hostage and it is difficult for us to understand what the goal is," a commuter told Reuters at the Gare de L'Est station. France has witnessed two weeks of nationwide industrial action against Macron's pension reform. If the reform is set into motion, special pensions for many public sector staff would be scrapped. This would effectively make people work until 64 to draw a full pension. French PM Emmanuel Macron recently announced that he would forego a presidential pension payout after stepping down. France's oil sector workers are also expected to vote in favour of shutting down oil refineries as part of the protest. (With inputs from agencies)

France: Protests against pension reform continue, scuffle breaks out at Gare de Lyon station

Protests in France against government's new pension plans

With a nationwide movement of rolling strikes and protests having started to tail off as it enters a second week, unions were hoping for a new jolt to regain momentum by bringing hundreds of thousands of <a href="https://www.wionews.com/world/thousands-of-paris-police-deployed-over-yellow-vest-clash-fears-250913">demonstrators</a> back out onto the street.

Former investment banker Macron has said he wants to streamline the Byzantine <a href="https://www.wionews.com/world/frances-prime-minister-defies-unions-with-pension-overhaul-267718">state pension system</a> with its tangle of special privileges, and use incentives to prod people to work until 64, instead of the average retirement age now of 62.

Eight of Paris' 14 metro lines were closed and the rest had a limited service, apart from two lines that run automated trains. Suburban commuter trains were heavily disrupted. Roads were thick with pedestrians and the streets crammed with bicycles and electric scooters as people tried to get to work.

The unions and Macron are each hoping to push the other to back down before Christmas, with the prospect that continuing strikes over the holiday would alienate an increasingly frustrated public.

"It wasn't me that started the pension reform, but I feel like I've been taken hostage. It's frustration turning to annoyance," said Johan Boyet, caught in the morning commute on Paris's central Boulevard Haussmann.

The state railway operator, SNCF, urged travellers not to show up at stations hoping to travel, with 80 percent of<a href="https://www.wionews.com/world/french-trains-disrupted-by-wildcat-strike-257097"> trains out of action</a> in the region around Paris. At some stations in the past two weeks, police and security guards had to stop commuters trying to fight their way onto overcrowded trains.

"Passengers are tired, our employees who aren't striking are tired," the head of SNCF in the Paris region, Alain Krakovitch told BFM TV. "My responsibility is to spread the word to avoid putting passengers in an unsafe situation."

Morning traffic queues in the Paris area totalled 300 km, though congestion subsided to normal by the end of the morning rush, with many workers having set off early or stayed home.

Numbers turning out for protests have waned since the start of the standoff but unions forecast a big turnout on Tuesday, with all the major unions taking part in the same demonstration for the first time.

Opponents of the pension reform have been buoyed by the departure of the government's pension reform tsar, Jean-Paul <a href="https://www.wionews.com/world/day-5-of-public-transport-chaos-as-french-strike-bites-267076">Delevoye</a>. He stepped down on Monday after it emerged he had failed to publicly declare more than a dozen posts he held in addition to his main job.

The unions are seeking to make a major show of force on Tuesday, because as Christmas approaches, the risk increases that the strikes could backfire. Strikes have already disrupted Christmas shopping.

A survey by pollster Ifop published on Monday in the Figaro newspaper showed that 55% of people believed it was unacceptable for the strikes to continue over the holiday.

With a nationwide movement of rolling strikes and protests having started to tail off as it enters a second week, unions were hoping for a new jolt to regain momentum by bringing hundreds of thousands of demonstrators back out onto the street.

With a nationwide movement of rolling strikes and protests having started to tail off as it enters a second week, unions were hoping for a new jolt to regain momentum by bringing hundreds of thousands of demonstrators back out onto the street. Former investment banker Macron has said he wants to streamline the Byzantine state pension system with its tangle of special privileges, and use incentives to prod people to work until 64, instead of the average retirement age now of 62. Eight of Paris' 14 metro lines were closed and the rest had a limited service, apart from two lines that run automated trains. Suburban commuter trains were heavily disrupted. Roads were thick with pedestrians and the streets crammed with bicycles and electric scooters as people tried to get to work. The unions and Macron are each hoping to push the other to back down before Christmas, with the prospect that continuing strikes over the holiday would alienate an increasingly frustrated public. "It wasn't me that started the pension reform, but I feel like I've been taken hostage. It's frustration turning to annoyance," said Johan Boyet, caught in the morning commute on Paris's central Boulevard Haussmann. The state railway operator, SNCF, urged travellers not to show up at stations hoping to travel, with 80 percent of trains out of action in the region around Paris. At some stations in the past two weeks, police and security guards had to stop commuters trying to fight their way onto overcrowded trains. "Passengers are tired, our employees who aren't striking are tired," the head of SNCF in the Paris region, Alain Krakovitch told BFM TV. "My responsibility is to spread the word to avoid putting passengers in an unsafe situation." Morning traffic queues in the Paris area totalled 300 km, though congestion subsided to normal by the end of the morning rush, with many workers having set off early or stayed home. Numbers turning out for protests have waned since the start of the standoff but unions forecast a big turnout on Tuesday, with all the major unions taking part in the same demonstration for the first time. Opponents of the pension reform have been buoyed by the departure of the government's pension reform tsar, Jean-Paul Delevoye. He stepped down on Monday after it emerged he had failed to publicly declare more than a dozen posts he held in addition to his main job. The unions are seeking to make a major show of force on Tuesday, because as Christmas approaches, the risk increases that the strikes could backfire. Strikes have already disrupted Christmas shopping. A survey by pollster Ifop published on Monday in the Figaro newspaper showed that 55% of people believed it was unacceptable for the strikes to continue over the holiday.

Strikes, protests as French unions seek momentum to halt pension reform

Unions protest in Paris against Macron's pension reform

Congress MPs on Monday submitted an adjournment motion notice in Lok Sabha over 'pension of disabled Army personnel'. 
 
An adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance.

The disability pension till now was not taxed by the government but recently, the government decided to tax it leading to opposition from the veterans community. 
 
On July 2, the Army headquarters clarified that though it is concerned for all personnel who are invalidated out of service in combat conditions or otherwise, and need additional support but "discourages those who seek financial gains through their disabilities."

Over the years broad-banding and compensation awarded for disability with income tax exemption has led to a rise in personnel seeking disability, even for lifestyle diseases. The trend is worrisome that too when the security challenges to the nation are on the rise," the Army headquarters stated. 
 
The sources said the Army has immense respect for the officers and jawans who suffer disability in line of action and they deserve much more than they are getting in terms of financial gains. 
 
The Army has also stated that higher compensation awarded for disability with tax exemption has over the years led to a rise in personnel seeking disability even for lifestyle diseases. At a time when the Army is trying to fight the trend of an increasing number of its personnel seeking disability pensions, it had emerged that more than 2,000 officers including more than 85 Brigadiers and Major Generals have sought disability pension for diseases including diabetes and high blood pressure in the last two years. 
 
In 2018, 52 officers above the rank of Brigadier and 977 officers of the rank of Colonel and below have sought disability pensions, sources said.&nbsp;

Congress MPs on Monday submitted an adjournment motion notice in Lok Sabha over 'pension of disabled Army personnel'. An adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance.

Congress MPs on Monday submitted an adjournment motion notice in Lok Sabha over 'pension of disabled Army personnel'. An adjournment motion is an extraordinary procedure which, if admitted, leads to setting aside the normal business of the House for discussing a definite matter of urgent public importance. The disability pension till now was not taxed by the government but recently, the government decided to tax it leading to opposition from the veterans community. On July 2, the Army headquarters clarified that though it is concerned for all personnel who are invalidated out of service in combat conditions or otherwise, and need additional support but "discourages those who seek financial gains through their disabilities." Over the years broad-banding and compensation awarded for disability with income tax exemption has led to a rise in personnel seeking disability, even for lifestyle diseases. The trend is worrisome that too when the security challenges to the nation are on the rise," the Army headquarters stated. The sources said the Army has immense respect for the officers and jawans who suffer disability in line of action and they deserve much more than they are getting in terms of financial gains. The Army has also stated that higher compensation awarded for disability with tax exemption has over the years led to a rise in personnel seeking disability even for lifestyle diseases. At a time when the Army is trying to fight the trend of an increasing number of its personnel seeking disability pensions, it had emerged that more than 2,000 officers including more than 85 Brigadiers and Major Generals have sought disability pension for diseases including diabetes and high blood pressure in the last two years. In 2018, 52 officers above the rank of Brigadier and 977 officers of the rank of Colonel and below have sought disability pensions, sources said.

Congress submits adjournment motion notice in Lok Sabha over 'pension of disabled Army personnel'

France should link pension rises for the poorest retirees with inflation again, the head of President Emmanuel Macron`s ruling party said on Sunday, as politicians seek a response to a wave of protests over high living costs.&nbsp;

"Yellow vest" demonstrators kept up the pressure for the 17th weekend in a row, even as turnout across France fell to its lowest since the movement erupted last November as a backlash against fuel tax hikes.

An extra 10 billion euros ($11 billion) in support for low-income workers and a U-turn on the fuel tax have yet to convince many to end their protests.&nbsp;

Macron is seeking to stem discontent via a national policy debate, with a marathon of town hall-style consultations with local representatives due to wrap up next week before the president returns his conclusions in April.

Lawmakers from his own La Republique en Marche party (LREM, or Republic on the Move) - an upstart force behind Macron`s electoral victory in 2017 that has a majority in the lower house of parliament - are also presenting policy proposals.&nbsp;

One of these would tweak the way pensions are calculated for the poorest, LREM party chief Stanislas Guerini told Le Parisien newspaper on Sunday.&nbsp;

For 2019, the government had limited pensions rises to 0.3 per cent - a modest hike after French consumer prices rose 1.8 per cent on average in 2018 and are expected to remain above 1 per cent this year.&nbsp;

Guerini did not flesh out the cost entailed in potentially linking some pensions to inflation.&nbsp;

Among other measures, LREM will also propose making rentals of cleaner car models available to low-income households for under 50 euros ($56) a month, Guerini said.&nbsp;

The now-scrapped fuel tax hike, heralded by Macron as part of a bid to fight climate change, had especially incensed people in rural areas who depend on their cars to get to work.&nbsp;

Guerini said LREM would also suggest mechanisms to allow people to put forward law proposals.&nbsp;

"As soon as a topic mobilises a certain number of people, let`s say a million, a draft law could be pulled together by an assembly of citizens chosen through lots," Guerini said in the interview. 
&nbsp;

France should link pension rises for the poorest retirees with inflation again, the head of President Emmanuel Macron`s ruling party said on Sunday, as politicians seek a response to a wave of protests over high living costs.

France should link pension rises for the poorest retirees with inflation again, the head of President Emmanuel Macron`s ruling party said on Sunday, as politicians seek a response to a wave of protests over high living costs. "Yellow vest" demonstrators kept up the pressure for the 17th weekend in a row, even as turnout across France fell to its lowest since the movement erupted last November as a backlash against fuel tax hikes. An extra 10 billion euros ($11 billion) in support for low-income workers and a U-turn on the fuel tax have yet to convince many to end their protests. Macron is seeking to stem discontent via a national policy debate, with a marathon of town hall-style consultations with local representatives due to wrap up next week before the president returns his conclusions in April. Lawmakers from his own La Republique en Marche party (LREM, or Republic on the Move) - an upstart force behind Macron`s electoral victory in 2017 that has a majority in the lower house of parliament - are also presenting policy proposals. One of these would tweak the way pensions are calculated for the poorest, LREM party chief Stanislas Guerini told Le Parisien newspaper on Sunday. For 2019, the government had limited pensions rises to 0.3 per cent - a modest hike after French consumer prices rose 1.8 per cent on average in 2018 and are expected to remain above 1 per cent this year. Guerini did not flesh out the cost entailed in potentially linking some pensions to inflation. Among other measures, LREM will also propose making rentals of cleaner car models available to low-income households for under 50 euros ($56) a month, Guerini said. The now-scrapped fuel tax hike, heralded by Macron as part of a bid to fight climate change, had especially incensed people in rural areas who depend on their cars to get to work. Guerini said LREM would also suggest mechanisms to allow people to put forward law proposals. "As soon as a topic mobilises a certain number of people, let`s say a million, a draft law could be pulled together by an assembly of citizens chosen through lots," Guerini said in the interview.

Macron's party favours pensions boost for poorest amid protests

The Maharashtra government Saturday gave administrative approval to a pension scheme for senior journalists in the state, which has been a long-pending demand of the media fraternity.

Last year, the government had made a budgetary provision of Rs 15 crore towards implementation of such a scheme in view of rising demands from various quarters.

As per a Government Order (GO) issued Saturday, the "Acharya Balshastri Jambhekar Sanman Yojana" will be implemented by the board of trustees of the 'Shankarrao Chavan Suvarna Mahotsavi Patrakar Kalyan Nidhi'.

The pension amount is not yet finalised.

Under the scheme, working journalists, photographers, editors of newspapers and other news broadcast media as well as freelancers who have attained 60 years of age and above and have completed 30 years in profession, will be eligible.

The senior journalists have to be accredited for minimum ten years, and journalism should be their only source of income.

Except the Employee Provident Fund (EPF), the applicant should not be getting any pension from any other source, the GO said.

Interestingly, one of the eligibility criteria makes it mandatory that the applicant should not be a Income Tax payee.

The pension will be given only during the beneficiary's lifetime and not to his/her kin after death, it said.

To avail of the scheme, senior journalists nearing their retirement will have to submit requisite documents to district information office. The documents will be scrutinised by a committee of Directorate of Information and Public Relations.

It will be committee's discretion to decide about granting pension to non-accredited journalists who fulfill the eligibility conditions.

The Maharashtra government Saturday gave administrative approval to a pension scheme for senior journalists in the state, which has been a long-pending demand of the media fraternity.

The Maharashtra government Saturday gave administrative approval to a pension scheme for senior journalists in the state, which has been a long-pending demand of the media fraternity. Last year, the government had made a budgetary provision of Rs 15 crore towards implementation of such a scheme in view of rising demands from various quarters. As per a Government Order (GO) issued Saturday, the "Acharya Balshastri Jambhekar Sanman Yojana" will be implemented by the board of trustees of the 'Shankarrao Chavan Suvarna Mahotsavi Patrakar Kalyan Nidhi'. The pension amount is not yet finalised. Under the scheme, working journalists, photographers, editors of newspapers and other news broadcast media as well as freelancers who have attained 60 years of age and above and have completed 30 years in profession, will be eligible. The senior journalists have to be accredited for minimum ten years, and journalism should be their only source of income. Except the Employee Provident Fund (EPF), the applicant should not be getting any pension from any other source, the GO said. Interestingly, one of the eligibility criteria makes it mandatory that the applicant should not be a Income Tax payee. The pension will be given only during the beneficiary's lifetime and not to his/her kin after death, it said. To avail of the scheme, senior journalists nearing their retirement will have to submit requisite documents to district information office. The documents will be scrutinised by a committee of Directorate of Information and Public Relations. It will be committee's discretion to decide about granting pension to non-accredited journalists who fulfill the eligibility conditions.

Maharashta approves pension scheme for senior journalists

Recently, 60 economists, including Abhijit Banerjee, Debraj Ray and Jean Dreze, wrote to Arun Jaitley, asking him to increase government spending on old age pensions and maternity entitlements.

&nbsp;

These economists have fallen prey to the fallacy of &ldquo;good intentions&rdquo;. The great economist Milton Friedman rightly said that it is a mistake to judge policies and programmes by their intentions rather than their results. The move advocated by these economists is intended to help pregnant women, newborn children and elderly people. It will end up hurting all three groups, and more.

&nbsp;

This is very counter-intuitive. After all, giving senior citizens or pregnant women more money should make them better off. But there is a concept in economics, called the Law of Unintended Consequences. Government meddles in the economy with the intention of solving a problem, but ends up making the problem worse or creating another problem.

&nbsp;

The US and European countries have large amounts of government spending on the kind of welfare schemes that our economists are requesting from Arun Jaitley. Let us see whether these schemes helped people in America and Europe or hurt them.

&nbsp;

&nbsp;Social Security

&nbsp;

In the US, people are forced to pay towards a government programme called Social Security. They pay a part of their salaries during their working years and receive a pension from the government when they retire. Similar schemes are found throughout Europe. This sounds very appealing, until one realises that these are just giant Ponzi schemes.

&nbsp;

Governments tax the current working population to pay pensions for the current ageing population. As long as there are fewer old people claiming pensions and lots of young people paying taxes, the scheme works wonderfully. When there are more old people claiming pensions and fewer and fewer young people paying taxes to fund those, the Ponzi scheme collapses. By 2090, the US government will be facing a $32 trillion shortfall in Social Security funding, which is almost twice the size of the US economy and little less than 10 times the tax revenue collected today.&nbsp;

&nbsp;

India might have a large (and growing) youth population now, but these youths will grow old. The birth rate will keep falling, as it has been for a long time. If the government starts paying pensions for everyone in India, we would face a similar economic disaster in the future, where too many old people will be claiming pensions, with too few young people paying taxes to fund them. Just look at what is happening in Europe.

&nbsp;

The Ponzi welfare state is the reason why Greece, Spain, Italy and other European governments are in such debt crises because they have predominantly aging populations and cannot extort sufficient taxes to fund their populist measures. To sustain their Ponzi schemes, European governments have had to provide financial incentives for people to have more children. This brings us to the next point.

&nbsp;

Maternity Benefits

&nbsp;

In the introduction to the letter, economist Jean Dreze wrote that the government should provide maternity benefits to all pregnant women, so they can have nutritious food and focus on raising children.&nbsp;

&nbsp;

Dreze wrote:

&ldquo;A fair amount of recent research in economics brings out the lifelong value of adequate care in early childhood. That, in turn, depends a great deal on mothers&#39; access to health, nutrition, rest, resources and power. This is the main reason why the National Food Security Act 2013 provides for maternity entitlements of Rs.6,000 per child for all pregnant women, except those already covered in the formal sector.&rdquo;

&nbsp;

Such assistance is also provided in the US. What were its effects?&nbsp;

It broke up the family structure. In 1960, 73% of children in the US lived in two-parent families, and only 5% were born out of wedlock. In 1964, the government launched a slew of welfare schemes, including assistance in obtaining food. Today, less than half of all children in the US live in intact families. African-Americans, who are mostly poor, have it worse. Nearly three-quarters of black children are raised by a single parent.

&nbsp;

The economics behind this is very simple. Because government subsidises child rearing in America, women don&rsquo;t wait to get jobs or marry someone who does, before having children. They have more children, and earlier, than they would have without government assistance.

&nbsp;

The real problem here is that women who can&rsquo;t even take care of themselves are given incentives to have children, whom they are not equipped to raise. Children raised in such troubled environments are more likely to turn to crime as they grow up.

&nbsp;

The Pradhan Mantri Matru Vandana Yojna (PMMVY), Narendra Modi&rsquo;s new maternity benefit scheme, is just another dirty populist measure. But it has a saving grace. It will give benefits only to the first child. Jean Dreze sees this as a bad thing. He believes that taxpayers should pay the expenses of any number of children a woman might choose to have, but can&rsquo;t afford to raise on her own. That would be even worse, since more children would be raised by parents who can&rsquo;t raise them properly.

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Experiences from the western world have clearly shown that while governments provided social security and maternity benefits with the best of intentions, they created far bigger problems in the process. The economists who have written to Arun Jaitley advocating similar policies would have been wise to look at the results of these policies, rather than their intentions.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

Experiences from the western world have clearly shown that while governments provided social security and maternity benefits with the best of intentions, they created far bigger problems in the process.

Recently, 60 economists, including Abhijit Banerjee, Debraj Ray and Jean Dreze, wrote to Arun Jaitley, asking him to increase government spending on old age pensions and maternity entitlements. These economists have fallen prey to the fallacy of “good intentions”. The great economist Milton Friedman rightly said that it is a mistake to judge policies and programmes by their intentions rather than their results. The move advocated by these economists is intended to help pregnant women, newborn children and elderly people. It will end up hurting all three groups, and more. This is very counter-intuitive. After all, giving senior citizens or pregnant women more money should make them better off. But there is a concept in economics, called the Law of Unintended Consequences. Government meddles in the economy with the intention of solving a problem, but ends up making the problem worse or creating another problem. The US and European countries have large amounts of government spending on the kind of welfare schemes that our economists are requesting from Arun Jaitley. Let us see whether these schemes helped people in America and Europe or hurt them. Social Security In the US, people are forced to pay towards a government programme called Social Security. They pay a part of their salaries during their working years and receive a pension from the government when they retire. Similar schemes are found throughout Europe. This sounds very appealing, until one realises that these are just giant Ponzi schemes. Governments tax the current working population to pay pensions for the current ageing population. As long as there are fewer old people claiming pensions and lots of young people paying taxes, the scheme works wonderfully. When there are more old people claiming pensions and fewer and fewer young people paying taxes to fund those, the Ponzi scheme collapses. By 2090, the US government will be facing a $32 trillion shortfall in Social Security funding, which is almost twice the size of the US economy and little less than 10 times the tax revenue collected today. India might have a large (and growing) youth population now, but these youths will grow old. The birth rate will keep falling, as it has been for a long time. If the government starts paying pensions for everyone in India, we would face a similar economic disaster in the future, where too many old people will be claiming pensions, with too few young people paying taxes to fund them. Just look at what is happening in Europe. The Ponzi welfare state is the reason why Greece, Spain, Italy and other European governments are in such debt crises because they have predominantly aging populations and cannot extort sufficient taxes to fund their populist measures. To sustain their Ponzi schemes, European governments have had to provide financial incentives for people to have more children. This brings us to the next point. Maternity Benefits In the introduction to the letter, economist Jean Dreze wrote that the government should provide maternity benefits to all pregnant women, so they can have nutritious food and focus on raising children. Dreze wrote: “A fair amount of recent research in economics brings out the lifelong value of adequate care in early childhood. That, in turn, depends a great deal on mothers' access to health, nutrition, rest, resources and power. This is the main reason why the National Food Security Act 2013 provides for maternity entitlements of Rs.6,000 per child for all pregnant women, except those already covered in the formal sector.” Such assistance is also provided in the US. What were its effects? It broke up the family structure. In 1960, 73% of children in the US lived in two-parent families, and only 5% were born out of wedlock. In 1964, the government launched a slew of welfare schemes, including assistance in obtaining food. Today, less than half of all children in the US live in intact families. African-Americans, who are mostly poor, have it worse. Nearly three-quarters of black children are raised by a single parent. The economics behind this is very simple. Because government subsidises child rearing in America, women don’t wait to get jobs or marry someone who does, before having children. They have more children, and earlier, than they would have without government assistance. The real problem here is that women who can’t even take care of themselves are given incentives to have children, whom they are not equipped to raise. Children raised in such troubled environments are more likely to turn to crime as they grow up. The Pradhan Mantri Matru Vandana Yojna (PMMVY), Narendra Modi’s new maternity benefit scheme, is just another dirty populist measure. But it has a saving grace. It will give benefits only to the first child. Jean Dreze sees this as a bad thing. He believes that taxpayers should pay the expenses of any number of children a woman might choose to have, but can’t afford to raise on her own. That would be even worse, since more children would be raised by parents who can’t raise them properly. Experiences from the western world have clearly shown that while governments provided social security and maternity benefits with the best of intentions, they created far bigger problems in the process. The economists who have written to Arun Jaitley advocating similar policies would have been wise to look at the results of these policies, rather than their intentions. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

Opinion: Maternity benefits and pension, are these good for us?

The Supreme Court has issued notices to Centre and the poll panel on a plea seeking scrapping of pension and other benefits being given to MPs.

The apex court has sought reply a reply within four weeks.

An ex-MP gets 20,000 per month as pension, the BJP government has been mulling increasing the pension of ex-MPs for the past three years.

Supreme Court also issued notices to secretary general of Lok Sabha and Rajya Sabha on Parliamentarians&#39; pension after retirement.

(WION)

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Supreme Court has issued notices to Centre and the poll panel on a plea seeking scrapping pension and other benefits to MPs.

The Supreme Court has issued notices to Centre and the poll panel on a plea seeking scrapping of pension and other benefits being given to MPs. The apex court has sought reply a reply within four weeks. An ex-MP gets 20,000 per month as pension, the BJP government has been mulling increasing the pension of ex-MPs for the past three years. Supreme Court also issued notices to secretary general of Lok Sabha and Rajya Sabha on Parliamentarians' pension after retirement. (WION)

SC notice to Centre, poll panel over pension to ex-MPs

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