Sunday, May 26, 2013

A thought for you younger people.

So there is high unemployment. And we are going to reform Social Security by increasing retirement age. Doesn't that mean that we are going to keep unemployment for young people higher? We know that when young people delay their first job (unless they are investing in education), their earnings are decreased for the rest of their lives. Yet our schools are not equipped to train young people to work successfully in the knowledge economy. The baby boom babies are reaching retirement age. The revolution in birth control methods dropped birth rate, and thus the rate of new entrants into the labor market following the baby boom. Immigration is down, and there is a strong movement to reduce immigration of workers who may compete with our unemployed workers and youths. Guess what this means for the long term ability of the working population to support our increasingly long lived population of old people and their increasingly expensive medical needs.

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