HappySqurriel said:
There is more than just pensions, but essentially that is correct ... So, with the excessive amount of dependency in our economy, for GM to pay their employees enough that they take home $10 to $20 per hour it costs them $70 per hour. If you start having people retire younger (as you suggested) it would push the cost of an employee to $100 to $200 per hour even if the employee only takes home $10 to $20 per hour. |
But then unemployment rate shoots way up. Suppose for GM, they need 10 people to make a car, 5 people ritire, that's 5 more jobs that openned up. If you have people working until they die those 5 jobs will never open up and that's 5 more people unemployed. 5 less people unemployed what do they do? Welfare? Starve and die? Like you're right about private pensions (For instance Air Canada had to pay more pensions than the money they were making yearly and causing big losses), but that same problem also affects unemployment. Which comes back to the government having to step in and pay pensions, but they don't have the money for it which is why they want retirement age raised, but all this does is delay the inevitable and causes more unemployment (Especially with companies downsizing left, right and centre because they screwed themselves over with their greed). Which comes back to the money not existing for people who are born every day and that money needing to be printed so they can pay for retirement. Governments don't want to print more money cause it causes the dollar to devalue and inflation to hit. Which comes back to my statement of governments should be allowed to print a certain amount of money yearly without penalty to redistribute into pensions and jobs. Or close all tax loopholes and make a far larger tax bracket on rich people who even if half their money was taxed yearly they'd still make a hell of a lot more than everybody, pay 50k a year in their country clubs, and still save.
