"Aren't you ignoring the fact that people who save in order to provide themselves with a self funded retirement are not a cost on the taxpayer via claiming old age pension?"
That's not correct. As the system currently stands, it is more cost-effective on taxpayers to pay all Australians over age 65 a full pension than it is to fund the overly-generous Super tax benefits. Additionally, you say self-funded retirees are no cost on the taxpayer when it is well known that the overwhelming majority still receive a part-pension. Fully self-funded retirees are in the minority.
The current system amounts to litttle more than a legislated transfer of wealth to those in least need of financial assistance. Its poor policy and bad economics resulting from the immoral use of political power by our financial elite. But, of course, the Age of Entitlement is finished, right? Only for those who lack political power.
To help the economy, you must begin to reverse the growing wealth inequality. The more unequal, the less money finds itself into the pockets of those most likely to spend it. Also, people worried about where their next dollar is coming from or the availability of healthcare and social support are unlikely to spend.
