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Your premise of > If it was purely pensioners seeking higher returns wouldn't those be getting circulated back into the economy, driving costs down? is incorr
by lotsofpulp 2y ago
Your 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