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There no massive capital flow like in the US because nobody's putting their entire life savings and pensions on the markets.
by Bayart 5y ago
There no massive capital flow like in the US because nobody's putting their entire life savings and pensions on the markets.
- wutbrodo 5y agoInteresting, where do retirement savings go? I don't know much about the European context beyond the S = I identity from my intro macro courses back in the day.
- jbverschoor 5y agoReal estate, guns, oil. And we’ll they actually cannot pay what they promised, so they keep upping the pension age etc.
- Bayart 5y agoPersonal savings usually go into real estate and conservative savings instruments (savings account with minuscule interests payments, life insurance). Public pensions are just part of the regular money flow of the State. Taxes come in from the employed, budget goes out to the retired.