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Inflation + growth is what makes a pensions system possible in the first place. Devaluing debt and growing capital allows for a period of no productivity at old
by Tarq0n 3y ago
Inflation + growth is what makes a pensions system possible in the first place. Devaluing debt and growing capital allows for a period of no productivity at old age, otherwise it would be unaffordable.
- tcfhgj 3y agoIt = wealth distributed extremely unevenly and lots of unnecessary luxuries
- harimau777 3y agoHow do you define a necessary versus unnecessary luxury? Aren't all luxuries by definition unnecessary?
- tcfhgj 3y agoYes
- harimau777 3y agoSo what are you advocating? That everyone live in a non-descript gray apartment block, eat unflavored nutrient paste, wear identical undyed clothing, etc.?
- tcfhgj 3y agoPrioritizing what really matters
- Apes 3y agoThat's not true - Inflation + growth is what makes a pension fund designed for generating votes possible. Any system that intentionally pays out significantly more than people pay in is going to have sustainability problems. It's so bad with the California pension systems that they're facing immenant collapse, despite being in an economy with the highest growth rate in human history.
- harimau777 3y agoThe alternative doesn't seem workable either since it would require people to have enough surplus income to pay in enough for retirement. However, a huge segment of our population barely makes enough to live on.
- Apes 3y agoTrying to wallpaper over complex and deep rooted systemic issues by just declaring the outcomes we want to be law is the toxic zeitgeist that will probably both be our downfall, as well as what our era is best known for in the future. Creating an unsustainable pension system solves nothing. The only real solution is to root out the causes of unsustainable cost of living and address them. But doing that is far more difficult than just giving out "free" money, and gets almost no recognition from voters.
- theossuary 3y agoWhat era are you talking about? The 30s?
- Apes 3y agoYeah, roughly the 1920s through the next 20 years.