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You need human beings to actually produce stuff and grow the economy, which drives most public and private retirement accounts (we're not just talking about soc
by spamizbad 6y ago
You need human beings to actually produce stuff and grow the economy, which drives most public and private retirement accounts (we're not just talking about social security here).
- ikeboy 6y agoSure, but why do you need an increasing number of them?
- hiram112 6y ago> but why do you need an increasing number of them? Because most public and private retirement accounts assumed that the growth would occur, thus it was okay to promise themselves a pension and health package that was very, very generous based on lots of younger people paying X%. They literally are pyramid schemas which require a larger group of workers to support. In other words, they calculated something like 'When I'm 63, there will be 4 workers available for each retiree, and each worker can afford to pay $15K a year in taxes to support that $60K / year pension.' Well, it turns out there are only 3 workers for each retiree. So either the workers need to be taxed $20K each to support this pensioner, or the pensioner has to take a 25% cut.
- ikeboy 6y agoI'll refer you to my post arguing against this exact claim: https://www.reddit.com/r/badeconomics/comments/dr74i0/life_is_not_a_ponzi_scheme/ https://www.reddit.com/r/badeconomics/comments/dr74i0/life_i...