"Make it so people can't afford to retire. Try to improve worker efficiency."
The only way those are compatible would be with significant absolute economic growth, wouldn't it? I'd say a lot of theoretical retirees would be seeking to postpone annuity purchase right now (and probably for several years into the future) but what do they do instead? Stay in work? Without growth there aren't any extra jobs, so youth unemployment goes up. Improving efficiency surely contributes to the problem if fewer workers are needed to get a constrained amount of work done. Or is this tied in with the QE/inflation idea: create the need for more work by stimulation?
I must say I'm glad I'm not ready for retirement age yet - I don't think I could afford it if I was.
no subject
Date: 2012-10-16 08:42 am (UTC)The only way those are compatible would be with significant absolute economic growth, wouldn't it? I'd say a lot of theoretical retirees would be seeking to postpone annuity purchase right now (and probably for several years into the future) but what do they do instead? Stay in work? Without growth there aren't any extra jobs, so youth unemployment goes up. Improving efficiency surely contributes to the problem if fewer workers are needed to get a constrained amount of work done. Or is this tied in with the QE/inflation idea: create the need for more work by stimulation?
I must say I'm glad I'm not ready for retirement age yet - I don't think I could afford it if I was.