3 ms·

This only works if you have a reasonable population growth rate. And this isn't happening anymore. So we are boosting population numbers through immigrants that

This only works if you have a reasonable population growth rate. And this isn't happening anymore. So we are boosting population numbers through immigrants that will never afford the kind of housing and retirement the previous generation had. And we are boosting the stocks through printing more money, that also drives real estate prices insane. That's a recipe for a social conflict. Once the majority can't afford a house and a pension comparable to yours, they won't just stand aside and let you enjoy it. They will label you an oppressor and will come and take it. And the laws won't help you if the majority finds them unfair.

oblio 6y ago
Why do you need population growth rate? You can just have each individual self fund their retirement, no Ponzi shenanigans.
- john_moscow 6y ago
  Because otherwise if you graduate at 25, work until 65, and expect to die at 85, your retirement contribution during work years needs to be half of your retirement check. If you are aiming for the same income level, 1/3 of your income needs to go towards retirement. In reality, people cannot put aside that much, so the % is much lower, relying on higher returns (private) and population growth (public).
  - oblio 6y ago
    Returns on investment? Even public pension plans can have them.
    - jopsen 6y ago
      Actually, the point was to not have the public pension save up money. Instead, we're betting that future generations will pay through taxes. Note. Public pensions are tiny, so you'll still want a private pension that is invested in stocks. But both is fantastic, because you have diversified your pension into stocks (private pension) and humans (public pension).
  - jopsen 6y ago
    Public pension is only part of the puzzle.. the pensions is tiny, you can maybe live off it, well barely. But it means that your private pension doesn't have to be as big. More importantly: the point is that your private pension depends on the stock market. You public pension depends on future generations. So overall part of my pension is going to be private: the underlying assets it's invested into is private companies through stocks. Another part of my pension will be public: the underlying asset is humans that can be taxed.

oblio 6y ago

Why do you need population growth rate? You can just have each individual self fund their retirement, no Ponzi shenanigans.

john_moscow 6y ago
Because otherwise if you graduate at 25, work until 65, and expect to die at 85, your retirement contribution during work years needs to be half of your retirement check. If you are aiming for the same income level, 1/3 of your income needs to go towards retirement. In reality, people cannot put aside that much, so the % is much lower, relying on higher returns (private) and population growth (public).
- oblio 6y ago
  Returns on investment? Even public pension plans can have them.
  - jopsen 6y ago
    Actually, the point was to not have the public pension save up money. Instead, we're betting that future generations will pay through taxes. Note. Public pensions are tiny, so you'll still want a private pension that is invested in stocks. But both is fantastic, because you have diversified your pension into stocks (private pension) and humans (public pension).
- jopsen 6y ago
  Public pension is only part of the puzzle.. the pensions is tiny, you can maybe live off it, well barely. But it means that your private pension doesn't have to be as big. More importantly: the point is that your private pension depends on the stock market. You public pension depends on future generations. So overall part of my pension is going to be private: the underlying assets it's invested into is private companies through stocks. Another part of my pension will be public: the underlying asset is humans that can be taxed.