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You are missing the most important one: - increase productivity more than how much the workforce/receivers grow. And if AI/robots eventually deliver, we're so
by littlestymaar 1y ago
You are missing the most important one:
- increase productivity more than how much the workforce/receivers grow.
And if AI/robots eventually deliver, we're soon going to need a discussion about lowering the retirement age to 55 or even 50 if we don't want 30% unemployment anyway.
- tossandthrow 1y agoThat would be raising taxes. - indifferent to how much automation you have, people still need to pay for it, for money they don't earn.
- littlestymaar 1y agoWhen people refer to “raise taxes” they usually talk about raising the rates, but you don't need to raise rates, if the GDP increase then the amount collected through taxes increases even if you don't change the rate. And as such, it feels like labelling that “raise taxes” is disingenuous.
- tossandthrow 1y agoExactly, another way to increase taxes is also by increasing gdp. Indeed the normal Understanding is not only about increasing rates - look at Switzerland eg.
- littlestymaar 1y agoI'd you really wanted to fit this square peg into your artificial triangle hole, I'd argue that in practice this is closer to “lowering benefits” than to “raise taxes” since the purchasing power of the retired would decline compare to the population average. But again, there's no basis to chose just your three items in particular.
- tossandthrow 1y agoThis is not fitting anything into anywhere. This is how economists think about.
- littlestymaar 1y agoEconomists working on pensions think about productivity a lot, and they don't bundle that in your “raise taxes” category.
- StackRanker3000 1y agoAutomation and increased productivity can also lower the cost of necessities such as food and health care, meaning retired people could theoretically get by with less.
- tossandthrow 1y agoNo. A part of necessities are access to assets. In the model you propose, inequality in itself will make those more expensive.
- lostlogin 1y agoThe money made and saved isn’t going to go to governments and the population though. As it stands, a couple of billionaires will become richer.
- littlestymaar 1y agoThat's a political decision though, and they try to hide it behind this kind of false trilemma.
- carlosjobim 1y agoProductivity has already increased several times over while the working age population has decreased. Working the young population into extermination is the current paradigm and is giving the current results, which is all according to plan.