Earlier quoted context omitted.
It's exactly a (forced as a political matter) economic isolation situation. North Korea is another politically isolated economy. I don't think they're doing very well either. Trade helps poorer nations more than it helps richer nations, but it helps both.
There are billions of people living under worse regimes than Cuba, yet only it and a handful of other nations have been on the receiving end of US sanctions. This was devastating to its economy (prior to the revolution it was of course Cuba's biggest trading partner). There is no justification for the embargo. It was Cold War aggression, pure and simple, now sustained for the last decades purely because of electoral…
French workers protest plan to increase retirement age
801–810 of 835 posts
Re: French workers protest plan to increase retirement age
#802Earlier quoted context omitted.
Sure, but the fact that your savings or pension plan contributions "should have" been enough for a certain amount of care can't guarantee that it will be enough for all or even half of it when the time comes; it's perfectly plausible (and with certain worker/retiree ratios even inevitable) that the market clearing prices will have to be higher than what would be enough for most people. And the key factor is that if e…
>then twice as much retirement savings should simply lead to a twice higher market clearing price for that work due to "these accounting mechanizations". You assume: * The labor market isn't flexible, that higher pay won't attract new workers * There isn't a wage at which workers would be satisfied meeting their basic needs. And this makes your conclusion that the labor would simply absorb additional funding too rigi…
Why yes, looking from a whole market macroeconomic perspective, we should assume that the labor market won't magically generate an arbitrary number of new workers just because the pay is higher - the total number of potential workers is set by demographics and cannot rapidly adjust due to market pressure. The pay rate does affect the labor participation rate, but there isn't that much room for maneuver there, the changes in proportion of workers-to-retirees are much larger than what you can fill with non-working potential workers.
Well, one way that does get new workers is massive immigration of working-age people (which is the strategy used, perhaps unintentionally, by some countries), but if their birth rate and life expectancy is similar, that only postpones the issue until those immigrants themselves reach non-working age.
Re: French workers protest plan to increase retirement age
#803Earlier quoted context omitted.
>> I believe if you set a limit on an individuals net worth, the economy will lose one of its major drivers and job creators This is a really intresting intuition. My off the cuff resposne would be something like this: So what? This does not mean anything without understanding what is the social impact of the jobs that were created - I have a bit of doubt that all 80000+ jobs at Facebook is really a net benefit for a…
I hear what you are saying but who in the US from the private sector is close to seizing power? Elon Musk is the richest man in the world and a political pariah. There is a big difference between 80k jobs created by the government and 80k jobs created by the free market. Those 80,000 jobs may not have a social impact as far as moving the world in the a desired direction but what jobs do? Does a plumber? A teacher? Wh…
So let's start with the obvious - I was not trying to propose "big government" as a solution here, sorry if this was not clear enough - I completly agree that using government as a substitution for private ownership mostly does not work.
My main point was "power accumulation" in hands of few or even one. Elon Musk is good example here - his accumulated wealth give him real power to decide what life of thouseds of people will look like (for better or worse). You may claim that this is not politcal power, but it still is power nontheless. And thus lifes of thousends wages on his mental state which at any moment can go full Caligula. I know this will sound idealistic .. but I do not like to live in a society where we leave so much power in hands of one individual. This also applies to politicians.
I know trying to solve this problem will probably throttle economic development but as lord Farquaad said "it's a Sacrifice I am Willing to Make" :).
>>Those 80,000 jobs may not have a social impact as far as moving the world in the a desired direction but what jobs do? >>Does a plumber? A teacher? What if they are not teaching what the party in charge wants taught?
This sounds a bit nihilistic - extrapolating this line of though leads quite easyly to conclusion that nothing matters (and as Camus has written we are then only left with one important question to answer).
>> Are we going to put someone in charge of determining if a job has meaning and eradicate the job if they don't?
Aren't we already doing it with capitalism and statism? :) Or did I missed ChatGPT-XXX taking over the world already (I swear I was trying to pay attention :))? But in all seriousness - I only propose limiting power of individualsm institutions and corporatios, not giving it to government.
>> What happens when a different political party wins election and starts eliminating positions that the prior party thought had meaning?
And what do you think happes when new CEO takes over company? Because I have seen far worse cleanings done through corporations that were taken over by competition than the biggest governments cleanigs of institutions done by new party taking over government (I happen to have some inside access to local govermants organizational data and know some people that worked for big companies that were raided).
>> Hitler was able to do what he did because the government had so much power.
Still the underling problem is power accumulation - governmant from my point of view was only means to obtaining it. I believe that we are living in times when new doors opened for power accumulation that will grant some individuals almost comparable power. And I would gladly sacrifice parts of economic development potential to do that.
Re: French workers protest plan to increase retirement age
#804Earlier quoted context omitted.
Bullshit jobs are not specific to state capitalist ("socialist") economies - they are a constant of all capitalist systems, as common in big corporations in the USA as they are in China or they were in the USSR. They do tend to take different shapes, but they are a natural effect of corruption, which tends to affect all large organizations.
> Bullshit jobs are not specific to state capitalist Yes, but unlike in socialist governments, companies with a lot of bullshit jobs will die due to being inefficient. Thats the point of capitalism. Nobody has to work to support other able bodied humans rent seeking off their labor and capital. But in the US this is not true, as we don't have true capitalism in the US, we have a socialist mix and the govt can sometim…
This is the "no true capitalist" fallacy. The reality of capitalism is that big companies get to impose whatever they want on any smaller entity they want. They may either do so directly (e.g. when operating in a weak country, like Chiquita's Banana Republics) or by co-opting government (either in cahoots with an authoritarian government like the USSR or China, or a democratic government like the USA or Europe). And big corporations will always have local fiefdoms with bullshit jobs, since corruption rears its ugly head in any large org - be it Oracle or the US Federal government.
> Thats the point of capitalism. Nobody has to work to support other able bodied humans rent seeking off their labor and capital.
Before claiming such hilarious idealism, maybe take a look at the capitalist US South and the way it was built by 150 years or more of slave labor.
Re: French workers protest plan to increase retirement age
#805Earlier quoted context omitted.
The Western standard of living has only been possible through currency/sage suppression of the non-Western world. Why do you think relocating everything to the West would be feasible or solve anything? I don’t understand why this isn’t common sense. > some cheap Chinese goods and Indian call centers Then again, if you have such a naive view of globalisation, you probably need to read more.
> Why do you think relocating everything to the West would be feasible or solve anything? > a naive view of globalisation I am talking about jobs in Western societies which were relocated elsewhere. And I admit that my views might be naive. But it is on you to convince Western middle class that shipping their jobs overseas, without an equally good job or social safety net lined up, is actually better for them. If you…
I’m just talking about reality - where Western governments, companies, and manufacturers decided that profit trumps employment. At the same time, without cheaper goods, given wage stagnation, consumers couldn’t have afforded local goods anyways.
It’s quite complicated really, and I don’t see a solution in capitalism.
Re: French workers protest plan to increase retirement age
#806Earlier quoted context omitted.
When options are thin, hope commands a premium. See: lottery tickets. Would you give up planning for retirement just because all of the options were unreliable? I wouldn't, I'd pick the least bad and try anyway.
Except the linked article argues that in hunter gatherer societies, kids were a net drain even when their parents were approaching retirement, and in agricultural societies there were "retirement" options in the form of land ownership and financial instruments.
Re: French workers protest plan to increase retirement age
#807Earlier quoted context omitted.
There are billions of people living under worse regimes than Cuba, yet only it and a handful of other nations have been on the receiving end of US sanctions. This was devastating to its economy (prior to the revolution it was of course Cuba's biggest trading partner). There is no justification for the embargo. It was Cold War aggression, pure and simple, now sustained for the last decades purely because of electoral…
I completely agree politically, assuming Cuba is no longer willing to host missiles or other non-defensive military apparatus from an adversarial nation.
Re: French workers protest plan to increase retirement age
#808Earlier quoted context omitted.
Hmm, sounds like forbidding pensions would fix that (make older people rely on their kids). Cheap labor is no more, especially in the age of highly specialized jobs requiring education (manual labor is greatly automated now, especially in agriculture, compared to 100 years ago). How else would we incentivise it? Money payouts on birth don't work -- only poor people would make good use of it, middle class would see th…
> Hmm, sounds like forbidding pensions would fix that (make older people rely on their kids). Then instead of having kids people will work on saving money for the old age.
Re: French workers protest plan to increase retirement age
#809Earlier quoted context omitted.
The origin of the modern pension system in Prussia was not actually designed to let people retire; the age was initially pegged to 70, the life expectancy of Prussians in 1881. American Social Security had an age of 65, but at the time of its passing life expectancy for American men was 58.
And if I remember correctly, the primary motive for the Prussian pension system when it was introduced was to reduce youth unemployment by getting the elderly out of the way. I think still today that is a deciding factor, as some economies have high unemployment and there retirement can be cheaper and better than caring for unemployed people at all ages. And other economies have high employment and would even benefit…
Re: French workers protest plan to increase retirement age
#810Earlier quoted context omitted.
To assume I'm one of those types just from that tiny comment... Jeez it's math. Why do I have to pay way more into my retirement than I am going to get back? I don't mind my taxes going towards others' retirement, but why does the beating have to be so brutal and severe? Why can't I pay $200k in and then opt out of SS and start putting that SS tax into my IRA?
If you're talking about US social security, your premiums are capped and your payout is directly linked to your contribution. Not sure how you could ever put $1M in of your own money over an entire career. Do the math but ignore inflation (because the cap and payment is indexed to inflation) If you work 30 years at $150,000 per year, you've put in 6.2% per year ($9,300) or a total of $280,000 (your employer put in an…
You're using 95 when the average lifespan in the US is 77 ($522k given back to you in SS payments).
At least with an IRA/401(k) next of kin can get the money if I die at, say, age 66.