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> They are, into your Blackrocks and KKRs and other funds to help drive further returns Gotcha, so point is that people just aren't really spending their retir
by tech_ken 2y ago
> They are, into your Blackrocks and KKRs and other funds to help drive further returns
Gotcha, so point is that people just aren't really spending their retirement savings? And simultaneously the population of money-hoarders is growing as more people enter retirement age?
- lotsofpulp 2y agoYour premise of > If it was purely pensioners seeking higher returns wouldn't those be getting circulated back into the economy, driving costs down? is incorrect in my opinion. Pensioners increase demand for labor, and without a commensure increase in supply of labor (or automation), the prices increase. They are going to spend their money on expensive healthcare, and maybe vacations. And without sufficient automation or labor, society has to take productivity from other sectors and redirect it to healthcare or other things old people buy.
- tech_ken 2y agoI guess my thinking was that this had always been the case somewhat, that there was a natural age split between producers and consumers to some extent. Most retired people have at least 1:1 replaced themselves in the workforce, so on a long-time scale I would expect their increased labor demand to be matched by the increased labor supply of subsequent generations
- alephnerd 2y ago> aren't really spending their retirement savings No. They absolutely are! America has a very healthy consumption ratio as a percentage of GDP. > the population of money-hoarders is growing as more people enter retirement age This is the issue. No one wants to retire on $1500/mo in 2055. If you want to retire on $6000/mo in 2055 this means you will need very outsized returns. And there will be more retired people demanding $6000/mo in 2055 than there are retired people today demanding $1500/mo.