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this post was submitted on 13 Aug 2024
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However, who replaces the aging workforce? Who pays for social security? Back in the 60s, it was a ratio of 6 workers per 1 retired. Now, it's 3:1. Soon, it'll be 2:1. That's bad. Very bad.
A smaller working population and a large inactive population create huge labour shortages which must be filled by migrant labour which creates additional problems.
One solution is enabling people to work for longer but this is challenging. Do we push the retirement age to 75? What about the declining health and abilities of ther population.
People are having children much later than normal. Births under the age of 20 have dropped 90% in the last 10 years. We are aging faster than we are replacing.
I was hoping productivity or efficiency would make up for it but looks like max we have gotten is about double efficiency. 1960 TEP is 66 on the scale and today 2022 and 2021 is 164-168. Meaning we are 100% more effective. So 2 workers are more like 4 workers in the 1960s. But it isn't the same as 6 to 1 ratio sadly
https://www.epi.org/productivity-pay-gap/ https://www.mercatus.org/research/data-visualizations/how-many-workers-support-one-social-security-retiree