$5 Trillion Price Tag for Public Pensions~ When is enough enough?

[darkknightkryta]

HappySqurriel said:

darkknightkryta said:

I disagree, there aren't enough jobs and the more people we get out of jobs with retirement the more jobs there are for the young.  Though the greater problem is the blue collar work has been shrunk down.  Too many people getting degrees, masters, PH.d's, not enough jobs for them, no other jobs for them to fall back on (Since, they're all over seas).  So what do people do?  Like I'd agree about the retirement age, but when it come down to it, there just aren't any jobs and any little bit to free up jobs will help.

Look at it another way ...

For every person who is dependent on the system products and services have to cost more to cover the cost of supporting these people, and this makes these goods and services far less cost effective compared to international competitors. At the following dependency level, goods and services have to cost the following:

0% dependency: 100%
10% dependency: 111%
20% dependency: 125%
30% dependency: 142%
40% dependency: 166%
50% dependency: 200%
60% dependency: 250%
70% dependency: 333%
80% dependency: 500%
90% dependency: 1000%

We live in a society with an employment to population ratio of 58% and a government that accounts for (roughly) 40% of the work force, which combined puts our dependency at (roughly) 66%; if the employment to population ratio increased to 65%, and the government was reduced to 30% of the workforce, dependency would fall to (roughly) 45%. The net effect of this kind of a change would be the cost or producing goods and services within our economy falling by (roughly) 40%; and goods and services would be far more cost effective to produce within the economy (increasing national and international demand), and people would be able to afford more goods because they were spending less on the goods they were buying (increasing national and international demand), and it would be easy to justify hiring more employees at most companies.

 

Costs of goods always go up due to national inflation and market conditions, there is no situation where the costs of goods will go down.  Plus corporate greed which cause the majority of jobs to be shipped to India and China will always keep jobs low in most countries.