From the ACC site:
...we now collect enough money during each levy year to cover the full lifetime costs of every claim that occurs in that year.
Some people who are injured need ACC’s help for 30 years or more, so significant reserves must be built up to fund these future costs. This money is invested and earns interest that helps pay the cost of claims.
This fully funded model is fairer for levy payers. Future generations of levy payers won’t be paying for injuries that happened years before as the cost of those claims will already have been collected.
So they're actually hedging against a *fall* in the accident rate. I still don't quite see it, because future levy payers are exposed to market risk, as well as to the risk of treatment proving more expensive than forecast.
A cynic would think it allowed ACC to be neatly packaged for privatisation.
other Govt agencies that invest their funds for future use - ACC being one that immediately jumps to mind.
I've never understood that. I can't see that the future will have an inbalance of accident beneficiaries over contributors, unless life is suddenly going to get more dangerous. Surely the simple fact that ACC averages 4 million small risks means that their income and outgoings are always going to be in step?
What's a DCM and when did Worth get one?
I think a lot of the problem with the Nikkei reflects the fundamentals of the Japanese economy. They are very good at making anything that can be put in a crate. Unfortunately, so are lots of other countries, these days.
With a few exceptions though (like Playstations), Japan hasn't delivered much growth in the knowledge economy. So their companies haven't grown, and hence their stock market has languished.
OTOH, if you believe that the capitalist system is doomed, then you wouldn't expect stock markets to go up any time soon and hence would want to get out of shares.
It's an odd belief for the National Party to hold, though?
I found it.
With a graph which doesn't show that at all.
Things appear worse than we thought:
- according to the Dom Post GDP per capita will "shrink by the equivalent of $10,500 per person per year until 2014".
Since the current figure for this is $42,089, then GDP will reach zero in 2013 and be down to negative $10k by 2014.
We'll be poorer than Burundi, the Congo and Zimbabwe. English will be the first finance minister in history to achieve negative GDP. He'll be able to go to economic destruction conferences with Gideon Gono. People will marvel at this country where each person destroys $200 in wealth every week.
I'm kinda assuming that the economist said something else. Like DPF's witterings above, it just goes to show they should teach them to use a calculator at Auckland Grammar, or wherever they try and learn Tories to add up.
capitalism is theft..
Doesn't first year law get harder at some point soon? Somebody needs their time occupying...