New Book: Commonwealth by Negri/Hardt
Commonwealth is the latest collaboration between Michael Hardt, a Duke University professor who specializes in Italian literature, and Toni Negri, an original member of the radical Autonomia group in Italy. Negri is the more colorful of the two, having at one time been accused of being the intellectual leader of the Red Brigades terrorists who in 1978 kidnapped and murdered former Italian Prime Minister Aldo Moro. Negri fled to France and lived in exile before returning to Italy in 1997 to serve out the remainder of a reduced prison sentence on a lesser charge.)Commonwealth concludes the trilogy that started with Empire (2000) and continued with Multitude: War and Democracy in the Age of Empire (2004), both also from Harvard University Press. Read more
The pension reforms of the years 2000 until 2007 were supposed to attenuate the foreseeable effects of demographic change on the pension system. This is why the retirement age was raised, the pension level was lowered and a so-called sustainability factor (“Nachhaltigkeitsfaktor”) was introduced into the pension formula. This approach meant a fundamental change of objectives – from safeguarding living standards in retirement to the stability of contribution rates. The lower future pension level is to be complemented by the subsidised formation of a private capital stock (“Riester pension”) without employer participation. The analysis of the macroeconomic consequences of this reform shows that the chosen policy of enhanced funding both dampens growth and leads to insufficient income in old age. Thus the current strategy is not suitable for alleviating the demographic burden.