I agreed 100%.
One point I'd argue though, is that we needed to start applying common sense to the way large capital budgets were being spend. That's the one good thing that might come from temporarily slashing capital spending.
Current spending is protected for one reason alone, and that is politics.
The pensioner situation always makes my blood boil. Young families are struggling to make ends meet with massive mortgages, stuck in tiny apartments whilst the grey brigade defend every 'entitlement' without a shred of solidarity with the coping classes - and not only do they get away scott free, they actually somehow managed convince the public that, unlike struggling people large mortgages and with young children, they should be untouchable in the economic downturn. A PR guru would have been proud of their campaign.
Taking away automatic medical entitlements from the over 70s was bound to be an emotive issue and it was done in a stupid way. If done right, those on good incomes (€35k+) would have been left their benefits but been charged a levy e.g. €500 p.a.
But somehow society has now been brainwashed into the notion that well off older people shouldn't make any contribution to the non-means tested generous benefits they receive.