Reply to post: Retirement of boomers in economy

Basic income after automation? That’s not how capitalism works

Casapaz

Retirement of boomers in economy

All of the retirees defiantly puts a huge strain on the economy. Not because they have stopped working, but because many will spend a lot less money because they don't need to, and their income is limited and fixed, plus they might have to help their children which quite possibly still live in their basement

Many of the retirees leave companies and no younger person will replace them. The job has already been automated or contracted out, or the trainee that may replace them makes much less than them. Of course there will be a "talent shortage" when we can't find someone with 20 yrs experience anymore and companies will bemoan that they can't find qualified canidates pushing to allow them to hire foreign talent rather than training people.

Contrary to what most of the press has been spouting, we won't need millions of more workers to take care of the consumption habits of the retirees. Most of them aren't needing to buy houses, cars, pay for education, etc. Of course health care is where retirees are going to spend more, but until there is a massive wage inflation among nurses and caregivers, I don't think that is a problem.

The reason japan is feeling the pinch is because they have the same problems with the job market and not enough higher paying jobs which leaves less taxes for the government.

What Japan needs to do is implement a UBI so that employers can't threaten peoples survival with 80hr workweeks or no job and no money.

What has actually happened is that China has finally taken most of the manufacturing jobs, and if they haven't then automation probably has. Governments are afraid of increasing the debt. The whole cycle has started breaking down because the people that actually want to buy what is being produced don't have a job to pay for it.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2019