Web links for 10th July 2009
David Lipsey on the British North America Committee report on public sector pensions that claims the cost of public sector pensions is 85 per cent of GDP: "It is a statistical howler that would make an “O” level student blush to compare this with the figure for GDP for a single year. To make matters worse, we can safely expect GDP to increase over the years to come (if it does not neither will pensions, reducing the actual liability). So the proportion of present GDP represented by the liabilities is even less relevant. What matters if anything is the proportion of future GDP that they represent.