The price you’re paying for the government’s decision to abandon the economy – £100bn wiped off the value of pension funds

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As the FT notes:

Turbulent markets have played havoc with the finances of the UK’s corporate pension schemes. One key official measure has shown that the shortfall in underfunded schemes increased by roughly 50 per cent in July. Another has shown that asset values have fallen by more than £100bn since then.

The Pension Protection Fund’s 7800 Index, which measures the aggregate assets and liabilities of the schemes whose benefits it insures, said that by the end of July the shortfall of schemes in deficit had risen from £77.6bn to £116.7bn.

This is the price people are paying for the government's decision to walk away from the economy. This government - and other governments - could decide to tackle the recession head on.

They could use the low interest rates they're enjoying to invest in the things we need: hospitals, schools, vital repairs, coastal defences, sustainable energy, new communications infrastructure on which to build an economy, insulated homes and so, so much more. All would create jobs, here, now. Those jobs would result in tax paid, benefits saved and a massive boost to the private sector. We'd turn the corner. The investment would pay for itself now and in the long term. We could enjoy a double whammy from cheap funding for short and long term gain.

But no. The government has walked away from the economy, its responsibility and the people of this country. It says it won't interfere.

And the price we pay is £100 billion wiped off pension funds.

So you don't get the gain. But you suffer the pain.

Remember that when it's election time. Please.