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> the entire US economy is functionally built to transfer wealth from young to old. Until the old die, which they inevitably do, and then the transfer complete

> the entire US economy is functionally built to transfer wealth from young to old. Until the old die, which they inevitably do, and then the transfer completes the cycle back to the young. >largest, wealthiest population of non-working adults (retirees) What does that have to do with affordability? Most of the current income of these "retirees" is based on the work they did earlier in life (Soc. Security[0], 401k/IRA withdrawals). Further, you seem to be conflating "non-working" with being non-paid. Many of these retirees are providing unpaid daycare to grandchildren, unpaid assisted living service to other elder family members, or volunteer positions in the community. [0]Yes, I understand that today's Soc. Security is funded mostly by today's wage earners, but not all of it. On an inflation adjusted basis, a good chunk of Soc. Sec. benefit is just the taxpayer's own FICA taxes that have been earning interest over time coming back to them, as well as the income taxes they pay on those very same Soc. Security benefits.

pc86 3y ago
I'm not sure I'd say a 90 year old dying and transferring their wealth to their child a few years before that child retires "back to the young." The largest collectors of inheritance are those above the age of 50.
folli 3y ago
> Until the old die, which they inevitably do, and then the transfer completes the cycle back to the young. It will transfer to the middle aged who will become the old soon. It won't cycle back to the young.
- readthenotes1 3y ago
  Fentanyl doesn't affect the old affluent equitably. My great granddad died at 90, my grandad is 93. Lord knows how old I'll be when I inherit...
- vidanay 3y ago
  > It will transfer to the middle aged who will become the old soon. It will transfer into the health care system and wealthy share holders.
  - coffeedan 3y ago
    ^^^ This! All but the wealthiest of retirees who make it into their 80’s and 90’s will spend any money they have on healthcare, until they are broke and then go on Medicaid.
  - lxm 3y ago
    As well as other participants https://news.ycombinator.com/item?id=38098779 https://news.ycombinator.com/item?id=38098779
- lazide 3y ago
  The middle aged (parents) are the ones who are helping their kids. And pay the majority of the taxes that fund almost everything. The ‘living with your parents’ meme may be tough - but not nearly as tough as having homeless parents!
- jcranmer 3y ago
  When my grandparents died and my parents' generation inherited the wealth, half of them were already retired. So there's a pretty decent chance that the old dying are leaving the wealth to the old as well.
- lxm 3y ago
  How can you be so confident with that prediction? There are some families where relationships with grandkids are much more positive than with direct descendants. Families where middle aged don’t need any help, but grandkids could always appreciate a boost to the college fund. Families where the bridges have been burned badly and the money is going to the charity just because. Families where grandpa is on the reverse mortgage busy traveling the world, etc.
legitster 3y ago
401k/IRA income comes from the market, just as property value does. So in a roundabout way, you are benefitting from the economy as a whole and the earnings of others. (Not to say that it's bad, but Baby Boomers are going to reap much more from this than previous generations). > Many of these retirees are providing unpaid daycare to grandchildren, unpaid assisted living service to other elder family members, or volunteer positions in the community. Agreed! But at a much lower rate on average than 40hrs/week!
bxparks 3y ago
> Until the old die, which they inevitably do, and then the transfer completes the cycle back to the young. No, most of the boomer wealth will be transferred to private equity (who now own the majority of long-term care facilities), the hospital executives, the health insurance executives, big pharma executives, and a good number of doctors on the gravy train. The next generation will get very little of that wealth. > On an inflation adjusted basis, a good chunk of Soc. Sec. benefit is just the taxpayer's own FICA taxes that have been earning interest over time coming back to them, When Social Security was created, the first recipient started receiving checks in 1940, 5 years after the program was created (https://socialsecurityreport.org/a-fascinating-look-at-social-securitys-very-first-beneficiary/ https://socialsecurityreport.org/a-fascinating-look-at-socia...). It may be politically expedient to spread the untruth that it is an investment fund, where the old gets back what they put in after investments. But in reality, Social Security seems to be just another tax system, taxing the young and working, to pay for the old and unhealthy. Because baby boomers form the largest demographic group in the country, they will continue to extract everything from the younger generations as they grow older, then they will give all that money away to billionaires of private equity funds who own the majority of long-term care facilities in the country.

pc86 3y ago

I'm not sure I'd say a 90 year old dying and transferring their wealth to their child a few years before that child retires "back to the young." The largest collectors of inheritance are those above the age of 50.

folli 3y ago

> Until the old die, which they inevitably do, and then the transfer completes the cycle back to the young. It will transfer to the middle aged who will become the old soon. It won't cycle back to the young.

readthenotes1 3y ago
Fentanyl doesn't affect the old affluent equitably. My great granddad died at 90, my grandad is 93. Lord knows how old I'll be when I inherit...
vidanay 3y ago
> It will transfer to the middle aged who will become the old soon. It will transfer into the health care system and wealthy share holders.
- coffeedan 3y ago
  ^^^ This! All but the wealthiest of retirees who make it into their 80’s and 90’s will spend any money they have on healthcare, until they are broke and then go on Medicaid.
- lxm 3y ago
  As well as other participants https://news.ycombinator.com/item?id=38098779 https://news.ycombinator.com/item?id=38098779
lazide 3y ago
The middle aged (parents) are the ones who are helping their kids. And pay the majority of the taxes that fund almost everything. The ‘living with your parents’ meme may be tough - but not nearly as tough as having homeless parents!
jcranmer 3y ago
When my grandparents died and my parents' generation inherited the wealth, half of them were already retired. So there's a pretty decent chance that the old dying are leaving the wealth to the old as well.
lxm 3y ago
How can you be so confident with that prediction? There are some families where relationships with grandkids are much more positive than with direct descendants. Families where middle aged don’t need any help, but grandkids could always appreciate a boost to the college fund. Families where the bridges have been burned badly and the money is going to the charity just because. Families where grandpa is on the reverse mortgage busy traveling the world, etc.

legitster 3y ago

401k/IRA income comes from the market, just as property value does. So in a roundabout way, you are benefitting from the economy as a whole and the earnings of others. (Not to say that it's bad, but Baby Boomers are going to reap much more from this than previous generations). > Many of these retirees are providing unpaid daycare to grandchildren, unpaid assisted living service to other elder family members, or volunteer positions in the community. Agreed! But at a much lower rate on average than 40hrs/week!

bxparks 3y ago

> Until the old die, which they inevitably do, and then the transfer completes the cycle back to the young. No, most of the boomer wealth will be transferred to private equity (who now own the majority of long-term care facilities), the hospital executives, the health insurance executives, big pharma executives, and a good number of doctors on the gravy train. The next generation will get very little of that wealth. > On an inflation adjusted basis, a good chunk of Soc. Sec. benefit is just the taxpayer's own FICA taxes that have been earning interest over time coming back to them, When Social Security was created, the first recipient started receiving checks in 1940, 5 years after the program was created (https://socialsecurityreport.org/a-fascinating-look-at-social-securitys-very-first-beneficiary/ https://socialsecurityreport.org/a-fascinating-look-at-socia...). It may be politically expedient to spread the untruth that it is an investment fund, where the old gets back what they put in after investments. But in reality, Social Security seems to be just another tax system, taxing the young and working, to pay for the old and unhealthy. Because baby boomers form the largest demographic group in the country, they will continue to extract everything from the younger generations as they grow older, then they will give all that money away to billionaires of private equity funds who own the majority of long-term care facilities in the country.