[HN Gopher] France comes to a standstill as workers protest plan...
       ___________________________________________________________________
        
       France comes to a standstill as workers protest plan to increase
       retirement age
        
       Author : thesuitonym
       Score  : 106 points
       Date   : 2023-03-07 15:41 UTC (7 hours ago)
        
 (HTM) web link (www.cbc.ca)
 (TXT) w3m dump (www.cbc.ca)
        
       | jmclnx wrote:
       | I have to say, the people in France really know how to live!
       | 
       | Here in the US, people do not give a sh**. Already benefits have
       | been reduced to the point were you cannot live on Social Security
       | unless you pitch a tent next to a dumpster outside of a
       | restaurant.
       | 
       | Not only that, every year the retirement age is increased. For
       | people born after 1960 full retirement is 67. The GOP in congress
       | is trying to raise it to 70.
       | 
       | Do US people care, no they do not. If this happened in France I
       | think the full government would be dragged out and "guillotined".
       | 
       | I admire the French for standing up for their rights.
       | 
       | https://www.ssa.gov/benefits/retirement/planner/agereduction...
        
         | bm3719 wrote:
         | Social security recipients got a +8.7% increase this year. It
         | was +5.9% in 2022.
         | 
         | Pretty sure employee wages aren't tracking anywhere near that.
        
           | jmclnx wrote:
           | 8% of nothing is still nothing. No one gets enough Social
           | Security to live on without other sources of income.
        
         | WkndTriathlete wrote:
         | > Here in the US, people do not give a sh*. Already benefits
         | have been reduced to the point were you cannot live on Social
         | Security unless you pitch a tent next to a dumpster outside of
         | a restaurant.
         | 
         | This is a problem with Congress not managing the Social
         | Security system properly over the last 85 years.
         | 
         | > Not only that, every year the retirement age is increased.
         | For people born after 1960 full retirement is 67. The GOP in
         | congress is trying to raise it to 70.
         | 
         | See the life expectancy and demographic tables published here
         | by none other than the SSA:
         | https://www.ssa.gov/history/lifeexpect.html
         | 
         | That's because the combination of benefits times life
         | expectancy times demographics is either going to result in a
         | 25% reduction in benefits that the SSA can pay out or result in
         | a high tax burden on workers (read: major economic drag and
         | recessions) or some kind of half-assed compromise in between.
         | 
         | Had Congress continuously and properly managed the retirement
         | ages, contributions, and SS trust funds properly over the last
         | 85 years we would not be having this conversation. But they
         | haven't, and now there will be pain for almost everyone because
         | of it.
        
       | guilhas wrote:
       | It is strange how a lot of countries claim they will have trouble
       | to pay pensions but at same time are campaigning for UBI
        
         | advisedwang wrote:
         | There's a lot of UBI proponents who really just intend it to be
         | a way to strip away current benefits with something that in
         | aggregate provides less. Not all UBIs are the same.
         | 
         | There's a similar situation with the UK's universal credit. On
         | the face of it it was replacing a patchwork of benefits with a
         | single unified benefit, which should be better and more
         | efficient. However the _implementation_ was designed to
         | actually reduce benefits paid out (e.g. they replaced up front
         | payments with payment in arrears, made it difficult to sign on
         | to, kick people off for small issues, etc etc).
         | 
         | Changes labelled with the same name can be radically different
         | in actual results, you really have to look into any given
         | proposal.
        
       | crmd wrote:
       | A wealth tax (instead of income tax) is the best way to reverse
       | the capital hoarding which is destroying modern society. Go after
       | their assets.
        
         | kwere wrote:
         | that and eliminating the creation of money out of thin air to
         | generate the famous healty 2% inflation, the money injected
         | into the financial system tend to go to the connected and
         | financial worthy aka already rich, creating bubbles and
         | cheating society. A 2% wealth tax would be more equitable
        
         | wskinner wrote:
         | Impressive to pack so many assumptions in such a short comment.
         | 
         | - wealth tax is the best way
         | 
         | - capital hoarding is a thing
         | 
         | - capital hoarding is destroying modern society
        
           | forgetfreeman wrote:
           | Not only are these not assumptions, they're trivially proven
           | with even the briefest of research on the subject. Capital
           | hoarding: go look at GDP graphed against wages over the last
           | 60 years. Wages don't go up, so all that extra productivity
           | is going in -someone's- pocket. Capital hoarding is
           | destroying modern society: global news media is largely
           | controlled by 7 organizations, the international housing
           | market has been invaded by investment funds, healthcare
           | outcomes in the US continue to lag behind most industrialized
           | nations worldwide despite record profits, the list goes on.
           | It has never been harder to get a leg up (at least in the US)
           | at any point in the last 50 years, and the percentage of US
           | households that are living paycheck to paycheck keeps
           | increasing year over year. Not sure what you're stanning over
           | there but that is definitely an impressive set of blinders
           | you've got on.
        
             | legitster wrote:
             | Capital hoarding only refers to wealth being held back from
             | the market. Investments wouldn't count because you are
             | lending your money to others and that generates economic
             | growth. I think you are conflating terms with some other
             | inequality concepts.
             | 
             | You're clearly trying to shorthand a lot of disparate
             | political topics into one point (a good share of hospitals
             | and insurance companies in the US are non-profit - it
             | clearly doesn't affect medical prices), but I don't think
             | it's as clear cut an issue as you are making it.
        
               | forgetfreeman wrote:
               | I mean if you want to pretend the issue is murky despite
               | one being able to toss (at random) a loose collection of
               | off-the-cuff examples so be it, but I don't think your
               | confusion is rooted in much beyond cognitive dissonance.
               | Put even more simply: the haves are taking too much from
               | folks that actually work, hampering their social and
               | economic mobility.
        
           | [deleted]
        
         | cperciva wrote:
         | Would a wealth tax also apply to the NPV of pensions?
        
           | WJW wrote:
           | Depends on how you arrange it. In the Netherlands we have a
           | wealth tax, but pensions are not affected by it. Pensions are
           | counted as "deferred income", so you can pay into them with
           | "pre-tax" money but when the pension is paid out the income
           | tax is applied. This makes it so that it is beneficial for
           | workers to save into their pensions, since the effective
           | income tax of pensioners is usually lower than for people
           | still working.
        
         | Thlom wrote:
         | We have a tiny wealth tax in Norway, so now the richest are
         | moving to Switzerland.
        
           | orangepurple wrote:
           | Switzerland also has a tiny wealth tax for all residents
        
             | Jensson wrote:
             | Switzerland has a tiny wealth tax instead of a capital
             | gains tax, Switzerland's is 0.3% and Norway's wealth tax is
             | above 1% and also has capital gains tax, totally different.
             | The total tax per wealth is much much lower. Also you can
             | opt for a lump sum tax, and then you don't tax your wealth
             | or income at all, you just pay tax based on your expenses.
             | Switzerland's tax is very lax.
        
           | paganel wrote:
           | If there's true political will one can do it, especially if
           | you're a country as big as France.
           | 
           | Let's say Arnault, the wealthiest French guy, decides to
           | decamp for Switzerland were the French to introduce a wealth
           | tax, then one of the most obvious solutions would be to
           | nationalize his assets with pennies on the dollar, introduce
           | an "emergency societal clause" in the mix to make it more
           | "legal", and I can assure you that the rest of French
           | billionaires will be happy to pay an effective tax rate of
           | 50% (let's say) as long as the State will still allow them to
           | keep a nominal hold on things.
           | 
           | And before anyone comes in and says "nationalization is a
           | thing that only dictators do", the modern history of France
           | is full of examples to the contrary. As recently as 1981
           | Mitterrand won the presidency by promising just that, i.e.
           | nationalizations.
        
             | fvdessen wrote:
             | Then people don't invest in France as much for fear of
             | having their wealth nationalised and invest in neighbouring
             | countries instead. Then the middle class leaves to the
             | better jobs in the neighbouring countries.
        
               | danaris wrote:
               | Are you under the impression that most wealth in a
               | country _comes from_ rich people? Because observation
               | over the past few decades strongly suggests it 's the
               | reverse. Rich people drain money out of the economy;
               | working people create value, and thus wealth.
               | 
               | Or what do you think is going to happen? The billionaires
               | will pull out, but they'll make sure to retain ownership
               | of all the businesses they ran--and fire everyone, thus
               | ensuring that those are just losing them money? How is
               | that going to be better for them than paying the tax?
               | 
               | And how long before France just nationalizes the
               | businesses and puts people back to work without the
               | billionaires getting a cent?
        
               | fvdessen wrote:
               | Investors are usually not billionaires but either regular
               | people putting money in the stock market for their
               | savings or retirement money, companies looking to expand
               | their assets, state looking to manage some of their
               | funds, etc.
        
             | gordian-mind wrote:
             | > As recently as 1981 Mitterrand won the presidency by
             | promising just that, i.e. nationalizations.
             | 
             | And what a colossal failure that was. After two years of
             | this policy, he was forced into a severe austerity turn.
             | France's economy was never the same afterwards.
             | 
             | After all you're right, if there's true political will,
             | anyone can shoot themselves in the foot.
        
               | paganel wrote:
               | 40 years later I don't see the neoliberal policies as
               | having done the trick for France, hence the current
               | conundrum.
        
           | tpmx wrote:
           | The wealth tax in Norway:
           | 
           | $160k - $1.9M: 1% per year
           | 
           | $1.9M and above: 1.4% per year
        
         | scotuswroteus wrote:
         | The best way to reverse the capital hoarding is to deeply
         | understand the way the policy making system works, not to
         | debate the merits of different policies. Folks who believe in a
         | wealth tax also don't believe in putting their noses to the
         | grindstone for decades to engage in the high octane chess game
         | of bureaucratic power politics. So it'll never happen.
        
           | forgetfreeman wrote:
           | Many do. Invariably they run into issues trying to finance
           | their campaign when competing with candidates who are funded
           | and offered media coverage by oligarchs. So having thrown our
           | hands in the air and given up should we just make serfdom a
           | thing again officially, or should we just go on pretending?
        
         | fvdessen wrote:
         | France already has a wealth tax and it is famous for being
         | completely ineffective. Very wealthy people just move away with
         | their wealth to richer countries.
        
           | orwin wrote:
           | And it's suppression changed nothing, so getting it back
           | should be nice.
        
       | PeterStuer wrote:
       | No-one hires 58+yo people. This is just about pushing more people
       | into poverty.
        
       | dahfizz wrote:
       | The idea of relying on the government for your retirement is
       | insane to me, for exactly this reason. You're willing to bet your
       | life that the government is always going to do right by you?
       | 
       | Save your own money. If Social Security exists by the time I
       | retire, great. I'm planning as if it won't.
        
         | ur-whale wrote:
         | > You're willing to bet your life that the government is always
         | going to do right by you?
         | 
         | Hear, hear, especially given the historical priors : (hint:
         | across a generation-sized time spans, governments _never_ keep
         | their promises. Why should they, they usually are in power for
         | decades at most).
         | 
         | And yes, relying on governments to handle your retirement money
         | is _completely_ insane, but the vast majority of folks in e.g.
         | the EU have drunk that kool-aid even though it was guaranteed
         | to fail since day one.
         | 
         | Retirement plans the way they work in Western Europe were
         | _always_ an absolute con, very much like a ponzi scheme (new
         | players pay for the earlier players).
         | 
         | When the young, working population was vastly larger than the
         | old retiree population (because the retirement age was designed
         | so that most people died before reaching it), the government
         | milked their working young for all they were worth.
         | 
         | Now that the age pyramid has inverted (large retiree
         | population, few working youngs), there simply isn't enough
         | income generated by the young to pay for the old and retirement
         | income is paid using debt.
         | 
         | What a freak show.
        
           | croes wrote:
           | >Retirement plans the way they work in Western Europe were
           | always an absolute con, very much like a ponzi scheme (new
           | players pay for the earlier players)
           | 
           | That's pretty much how families worked before retirement
           | plans, the kids payed for the parents.
           | 
           | This just got transferred to the whole society. And it worked
           | as long the rise of productivity led to a rise of wages.
        
             | dahfizz wrote:
             | > And it worked as long the rise of productivity led to a
             | rise of wages.
             | 
             | It worked as long as people had more than 2 kids. There was
             | always a larger young population supporting the smaller old
             | population.
        
           | creato wrote:
           | It's the same scheme that has existed for all of humanity:
           | the tribe's young people work to provide for the children and
           | elders. No one was retiring by hoarding a pile of gold. The
           | tribe is just bigger now.
        
         | at_a_remove wrote:
         | If it doesn't, well, American society has already bred the
         | perfect group of shock-wave troops: a bunch of dead-eyed, lives
         | paused, waiting for an apocalypse that never came Gen Xrs who
         | will dub their explosive-laden waistcoat's "retirement vests."
         | They're tech-savvy, they've waited for killer bees, land
         | invasions, acid rain, nuclear war, and watched the low-risk sex
         | of their elders transform into a high-stakes gamble at a
         | lingering death. They remember 9/11 _and_ Ruby Ridge. They won
         | 't factor into any threat profile because everyone forgets they
         | even exist. They waited dutifully for the Boomers to retire
         | only for 2008 to put a big hold on that, and the Millennials
         | just climbed over them on the ladder. If that quote about
         | "Every normal man must be tempted, at times, to spit on his
         | hands, hoist the black flag, and begin slitting throats" rang
         | true for a group, that's the one I'd pick. Probably the last
         | bunch you'd want to ditch Social Security on.
        
         | adra wrote:
         | Most people (in the world) live entirely without saving and are
         | making do in whatever way possible. For democracies that have
         | stable governments sans USA, there is absolutely the assumption
         | that the gov will pitch into avoid people starving in the
         | streets.
        
         | icelancer wrote:
         | > Save your own money. If Social Security exists by the time I
         | retire, great. I'm planning as if it won't.
         | 
         | I would guess that most people my age (between 35-45) got told
         | some variant of this in their business and economics classes in
         | university. At least, I hope they did.
         | 
         | Looking at Social Security budgets for about 20-30 minutes and
         | what politicians have proposed to do to fix it is enough to
         | make most reasonably-minded people understand that expecting
         | anything more than token amounts of money from the program is
         | idiotic.
        
         | weakfish wrote:
         | Most don't want to by choice! Many Americans specifically can't
         | afford to save, so what option do they have?
        
         | frenchman99 wrote:
         | That's if you have enough salary to save enough for retirement.
         | Which is not the case for a lot of people unfortunately. Hence
         | a government lead system where wealthy people are required to
         | pay more to help less wealthy have a somewhat acceptable
         | retirement.
        
           | icelancer wrote:
           | > Hence a government lead system where wealthy people are
           | required to pay more to help less wealthy have a somewhat
           | acceptable retirement.
           | 
           | Nothing stopped about this. Our demographics have changed for
           | the worse in this regard, is all. From the latest report from
           | the SSA's Board of Trustees:
           | 
           | "Social Security and Medicare both face long-term financing
           | shortfalls under currently scheduled benefits and financing.
           | Costs of both programs will grow faster than gross domestic
           | product (GDP) through the mid-2030s primarily due to the
           | rapid aging of the U.S. population. Medicare costs will
           | continue to grow faster than GDP through the late 2070s due
           | to projected increases in the volume and intensity of
           | services provided."
           | 
           | Furthermore:
           | 
           | "For the sixth consecutive year, the Trustees are issuing a
           | determination of projected excess general revenue Medicare
           | funding, as is required by law whenever annual tax and
           | premium revenues of the combined Medicare funds will be below
           | 55 percent of projected combined annual outlays within the
           | next 7 fiscal years. Under the law, two such consecutive
           | determinations of projected excess general revenue constitute
           | a "Medicare funding warning." Under current law and the
           | Trustees' projections, such determinations and warnings will
           | recur every year through the 75-year projection period."
           | 
           | It's a good read beyond the summary, too:
           | 
           | https://www.ssa.gov/oact/TRSUM/tr22summary.pdf
        
           | dahfizz wrote:
           | The pension money doesn't come from nowhere. The people who
           | are living paycheck to paycheck are paying 20% VAT and ~20%
           | income tax. Maybe they would have less financial trouble if
           | they could keep some of their own money.
           | 
           | I'm all for a safety net. Scaling the system way down so that
           | it only serves the people who need it would reduce the tax
           | burden and solvency issues.
        
         | croes wrote:
         | No, you're betting that their always will be a government and
         | other people who pay taxes and social security fees.
         | 
         | If you save for yourself it's likely that you lose.
        
         | JamesBarney wrote:
         | There are very few if any institutions that sophisticated
         | investors trust to pay back money more than the U.S.
         | government.
         | 
         | Banks go bankrupt, gold changes value, cash gets stolen. Seems
         | like the U.S. government is the best option.
        
           | ur-whale wrote:
           | https://www.officialdata.org/us/inflation/1800?amount=1
           | 
           | I'd love to have to repay my debts with those conditions.
        
           | dahfizz wrote:
           | US T-bills, sure. Not so for Social Security.
           | 
           | I would trust my retirement to the US Treasury. No sane human
           | would trust their retirement to the US Congress.
        
           | maxilevi wrote:
           | Only because the debt is denominated in USD, so the
           | government can always print it to pay it back. It's not like
           | it's the most fiscally responsible government around
        
         | lotsofpulp wrote:
         | The government issuing the money can reduce the purchasing
         | power of "your" money anytime it wants, and most governments do
         | every year.
        
           | cypress66 wrote:
           | Your savings wouldn't be all USD or bonds. It would include
           | stocks, commodities, investments in other countries, maybe
           | precious metals and crypto.
        
         | yamtaddle wrote:
         | Mandatory pension schemes remove the option to defect and spend
         | money that "should" go toward retirement to instead compete in
         | zero-sum games for benefit today for yourself and your kids
         | (say, housing in good school districts, tuition, et c.). That
         | part's pretty nice.
        
         | pkaye wrote:
         | Its crazy that we give 6.2% of our paycheck (and another 6.2%
         | from our employer) and we can't expect much in return.
        
           | dahfizz wrote:
           | Yeah. Even if I do get to collect SS, I'd have been better
           | off investing that 6.2% the whole time.
        
             | tristor wrote:
             | With just a 3% APR on a savings account, if you took the
             | 12.4% that everyone currently pays into social security and
             | deposited in that account for 40 years (25 to 65) of your
             | working life, at the current median annual income, you'd
             | have $715k in cash saved.
             | 
             | If you had invested that into a Roth 401k and invested it
             | in the market at an annualized average return of 7.3%
             | instead, it'd be $2.25M in retirement savings.
             | 
             | Social Security is a Ponzi Scheme because it's taking money
             | as an "investment" from people working today, to pay out
             | returns to previous "investors" who are now retired, while
             | the government has raided it and filled it with IOUs to
             | support spending unrelated to the pension.
        
           | 988747 wrote:
           | [dead]
        
         | skywal_l wrote:
         | What makes you think that if people are stupid enough to elect
         | corrupt government officials they will be smart enough to
         | invest their money wisely?
         | 
         | If you trust the financial markets more than the government
         | that you elect, I have a bridge to sell you.
         | 
         | Sure some smart people will be able to extract profit from the
         | market but most won't. I'd rather live in a country where the
         | people I chose can organize to ensure that nobody needs for
         | anything rather than in a country where I gamed the system and
         | now have to protect my loot against hordes of have-nots.
         | 
         | And if I can't do that, the joke is on me.
        
           | dahfizz wrote:
           | > Sure some smart people will be able to extract profit from
           | the market but most won't.
           | 
           | Source? Put your money in an index fund. The S&P 500 from
           | 1958 to 2008 went up 90x. The worst case scenario - All your
           | savings are in stocks and you retire during the second worst
           | financial crisis ever. And your returns are 90x. Not 90%,
           | 9000%.
           | 
           | The idea that "most won't extract profit" is nonsense. In the
           | long term, its free money for everyone.
           | 
           | https://www.officialdata.org/us/stocks/s-p-500/1958?amount=1.
           | ..
        
         | loudmax wrote:
         | I'm relying on a functional democratic government still
         | existing when I retire. It doesn't seem like a high bar, though
         | admittedly less of a certainty than we would have imagined a
         | decade ago.
        
         | morpheos137 wrote:
         | Governments create money and sustain its value. If you are
         | relying on saved money for retirement then you are relying on
         | government.
        
         | dgudkov wrote:
         | If you don't trust your government, what makes you think that
         | your money will keep its value over time regardless of
         | government actions? A reckless government can destruct not only
         | the retirement system, but the monetary system as well. A few
         | populist decisions about inflation and your savings go to the
         | waste bin _forever_.
        
       | supernova87a wrote:
       | One big challenge I see with the whole business about pension
       | reform (and government spending in fact) as a public debate is
       | that two sides are talking on totally different planes. In
       | France, and someday very soon, here in the US. And the public in
       | a certain sense, will problematically have to end up voting a
       | simple yes/no on extremely complex topics which are incentivized
       | to push buttons on single issues. cf. Brexit.
       | 
       | On the one side (hopefully meaningful to this crowd) is a group
       | that when confronted with the sheer numbers involved and
       | tradeoffs that would make any dent in the coming demographic-
       | driven bankruptcy (shorthand name for it), have to keep things
       | running and try to come up with the actually mathematically
       | workable or "implement this decision" plans with the resources
       | they have. Not aspirations.
       | 
       | Take a look at this for example:
       | 
       | https://www.nytimes.com/interactive/2023/03/06/upshot/balanc...
       | 
       | See those numbers/scenarios, there is no getting around the
       | severity of the situation.
       | 
       | Then on the other plane, there are people (politicians, and
       | people in general in the country) who deal in "symbols" and
       | qualitative statements about what they think who is entitled to,
       | what was promised, etc. "Eat the rich!" etc.
       | 
       | And lately it seems, rarely the twain shall meet. Or at least,
       | it's quite rare to find leaders who are equally incentivized or
       | capable of handling both sides of this adeptly. Also, the people
       | who don't understand the numbers generally tend to shout and
       | insist they're right. On the other hand, numbers people don't
       | usually shout (and underplay the severity of coming problems; the
       | type that analyzes is usually civil about it). Also, and this is
       | an evolving thought -- I don't think democracies are very well
       | suited to allocating the pain of a country's long-term downturn
       | very well, or having people understand when your country's
       | resources are actually decreasing.
       | 
       | One thing is for sure -- there is a massive unpleasant reckoning
       | coming in terms of what benefits and tax rates people believed
       | they would experience. There is no magic getting out of this
       | hole, it will be one of / combination of:
       | 
       | -- taxes will rise (for whom?)
       | 
       | -- benefits will decrease (for whom?)
       | 
       | -- retirement age will increase
       | 
       | -- borrowing will increase (from whom?)
       | 
       | And undoubtedly it will largely fall on the next generations. Or
       | just in time for my retirement.
        
         | Convolutional wrote:
         | The US has spent $100 billion in the Ukraine over the past
         | year, with more on the way, it is sending billions a year to
         | Israel and Egypt, is involved in Iran, China, Venezuela etc. It
         | just stopped spending a ton in Afghanistan. All the money spent
         | there seemed to have no positive effect.
         | 
         | The US seems to have money to throw all over the world for this
         | kind of bloodthirsty waste, if it cuts it can cut there. People
         | getting back money they put into Social Security should be the
         | last thing to go.
         | 
         | The US spends hundreds of billions on these wars of choice,
         | that can be cut very easy.
        
           | TheGigaChad wrote:
           | [dead]
        
         | croes wrote:
         | >There is no magic getting out of this hole.
         | 
         | There is magic, the rise of productivity. It just didn't reach
         | the ordinary people.
        
         | silisili wrote:
         | Maybe I'm too pessimistic, but sometimes I feel that bloc got
         | all the goodies at everyone else's expense. This isn't a
         | typical 'boomers' or anything argument against the people, but
         | perhaps the demographic itself and the way politics played out.
         | 
         | Pensions are unheard of now, and companies are still struggling
         | to keep up with them, likely meaning lowered wages for the next
         | group(and no pensions). Tough luck.
         | 
         | I fully expect to pay social security my entire life to
         | subsidize those getting it now, and to be dead before I'm ever
         | able to collect a dime.
         | 
         | Honestly, even having paid into it my whole life, I wish they'd
         | just kill it off. It's an unsustainable pyramid scheme,
         | especially as birth rates flattened. Even if I do live long
         | enough to collect, I don't want that burden on the next
         | generations.
         | 
         | The age is going to keep being raised. A quarter of Americans
         | don't even live to 'full retirement age.' And when it's raised
         | so high it's profitable, the USG is just going to raid it like
         | a slush fund.
        
         | ErikVandeWater wrote:
         | Is there a fundamental reason that cuts would have to be to
         | benefits? Why not cut xx% of the government budget anywhere but
         | pensions?
        
         | dangus wrote:
         | Do you have some kind of similar study that doesn't come out of
         | the Republican Party? Maybe something a little more non-
         | partisan?
         | 
         | An example of the flaws of this argument/article is how Social
         | Security is self-funded, and not in any financial jeopardy on
         | its own. [1] Some of the other entitlement programs on the list
         | also work that way.
         | 
         | Regardless, my understanding is that a government's budget
         | never has to be balanced. It doesn't operate like a family
         | household. Oftentimes, national debt is used for pursuits that
         | return on their investment, just like how startup companies
         | operate at a deficit on purpose to prioritize growth that will
         | make the company more valuable in the long term. Inflation also
         | lessens the value of the national debt over time.
         | 
         | I quite like one of those options: taxes on the wealthy and
         | ultra-wealthy have a lot of room to rise. Jack them up,
         | billionaires shouldn't exist, and people like Jeff Bezos
         | shouldn't have a single-digit tax rate.
         | 
         | The other part would be looking at government inefficiencies
         | and flawed policies that aren't on your list, the kind that
         | result in wasted spending that's hard to demonstrate tangibly.
         | For example, should we not talk about how suburban development
         | and the interstate highway system is a monetary drain on wealth
         | for the majority of the country?
         | 
         | It's really obvious to me how building more sewer, road, and
         | utilities per person and forcing everyone to own one car per
         | capita or more is a dumb waste of money on a national level.
         | Our government on every level plays a heavy hand in subsidizing
         | that development pattern.
         | 
         | It would be really easy to afford my tax rate increasing to a
         | much higher level if I wasn't forced to own more than one car
         | just to get myself to work. It would also be easier for me to
         | afford housing if a bunch of single family home owners weren't
         | preventing dense housing from being built, and then all that
         | extra money I saved could go toward something more economically
         | productive than a parking lot.
         | 
         | The average American spends somewhere between $5,000 to $10,000
         | per vehicle annually. Imagine a USA where everyone could go
         | down to one car per family and how the rest of that money could
         | be used.
         | 
         | But no, instead let's add _one more lane_ and make our retirees
         | work until they 're 85 rather than fixing our structural
         | problems that make America a very expensive and energy-wasteful
         | place to live.
         | 
         | Because, when you think about it, national wealth is basically
         | access to energy, and America is squandering their own wealth
         | by dumping it into their GMC Yukon Denali Ultimate that gets
         | 14MPG.
         | 
         | I don't understand why there's a temptation to jump to the
         | conclusion that the answer is to make people retire later in
         | life or cut safety net programs, which are often investments
         | with ROI (e.g., hungry kids learn poorly, hungry kids result in
         | reduced workforce education and productivity).
         | 
         | Are 70 year old employees particularly productive for the
         | economy in the first place? It seems like there are smarter
         | ways to save wealth or earn more wealth for the nation.
         | 
         | [1] https://www.aarp.org/retirement/social-
         | security/info-2020/10...
        
           | supernova87a wrote:
           | > " _Do you have some kind of similar study that doesn 't
           | come out of the Republican Party? Maybe something a little
           | more non-partisan_?"
           | 
           | Not sure what your point is. I'm not sharing the
           | article/infographic and animated budget scenarios as "this is
           | what needs to happen" from some party's perspective. The
           | point is a graphical display of the size of different buckets
           | (which I take as fact) and the sliders that you can play
           | with. The cases being presented are just examples. You can
           | mentally slide the bars / cut line and see how much is
           | required.
           | 
           | > _" I also find it funny how the infographic doesn't show a
           | scenario where only defense cuts are made, because it would
           | show us how cutting defense spending is a really simple path
           | toward a balanced budget without changing anything else_.
           | 
           | I don't know if you have looked at it, but the defense bar is
           | as big as each of the Medicaid, other mandatory, and "all
           | other" spending bars each. You would have to cut the entire
           | defense budget and still not solve the problem, and only make
           | a fractional share of what is achieved if you implemented
           | cuts to those other programs.
           | 
           | > " _Another example of the flaws of this argument /article
           | is how Social Security is self-funded, and not in any
           | financial jeopardy on its own. [1] Some of the other
           | entitlement programs on the list also work that way_."
           | 
           | Maybe you have to redefine your definition of self-funded.
           | Sure it is self-funded, as long as taxes increase a lot,
           | given the demographic wave coming. If taxes don't increase,
           | or one of these other options, it will run out of funds. If
           | we don't agree on that, we have a problem. This is the entire
           | debate about the problem we face.
           | 
           | > " _Regardless, my understanding is that a government 's
           | budget never has to be balanced. It doesn't operate like a
           | family household_...."
           | 
           | Well, correct, but the question is how deep do we go into the
           | hole. If you read the story, and the charts, you can see the
           | projections of debt going to 200% GDP. At that point we will
           | be paying enough interest on our debt to have funded several
           | large programs themselves.
           | 
           | > " _You 're saying our only options are for taxes to rise,
           | benefits decreasing, increasing retirement age, or
           | snowballing debt. But why are those our only options_?"
           | 
           | And the other options are?
           | 
           | > " _The other part would be looking at government
           | inefficiencies and flawed policies that aren 't on your list.
           | For example, should we not talk about how suburban
           | development and the interstate highway system is a monetary
           | drain on wealth for the majority of the country_?"
           | 
           | Sure, talk about it, but can you change the bulk of the US to
           | capture whatever benefit you can from that change, within 50
           | years to save the programs needing the money?
           | 
           | > " _I know I 've spent a lot of time on this one issue as a
           | specific example, but it's really just one of many ways in
           | which being smart and efficient about the use of the vast
           | wealth generated by the US would go a long way_...."
           | 
           | The talking is all good, but the bottom line is will your
           | proposals come up with the money in time?
        
             | vkou wrote:
             | > Sure, talk about it, but can you change the bulk of the
             | US to capture whatever benefit you can from that change,
             | within 50 years to save the programs needing the money?
             | 
             | We can start changing it today, and save ourselves the pain
             | of having to deal with it when _we_ retire.
             | 
             | It would also improve the quality of our day-to-day life on
             | many dimensions, long before we do.
             | 
             | What the grandparent poster is alluding to is that our
             | culture is sick with a myopic, penny-wise-pound-foolish
             | mentality, where people are personally spending tens of
             | thousands of dollars for a service that could be provided
             | collectively for thousands of dollars. While also
             | complaining about outrageous taxes.
        
               | supernova87a wrote:
               | I agree with this very much of course.
        
         | icelancer wrote:
         | These pensions were bankrupt the minute they were implemented -
         | the capital appreciation rates were completely insane to start,
         | and have only looked worse as time rolls on (which, I have to
         | stress, is extremely tough to imagine). Delusion around pension
         | portfolios eclipses all but the most insane crypto scams.
         | 
         | Quite a bit of my university work in the early 2000s revolved
         | around studying and modeling pension-type retirement plans,
         | primarily in the United States (Chicago and Philadelphia mostly
         | come to mind), but a little in foreign countries. While EU
         | pensions tend to be in worse positions, it's a distinction
         | without a difference: Pension reform is basically impossible.
         | Catastrophic bankruptcy and refusal to pay benefits is coming
         | to a theatre near you, because the political will to even begin
         | meager cuts (and so-called "drastic" cuts are indeed merely
         | meager) does not exist.
         | 
         | Politicians who propose meaningful cuts to pensions are
         | guaranteed a single term in office while the candidates waiting
         | in line promise to keep the Ponzi scheme going.
        
           | ecshafer wrote:
           | Philadelphia's pension "scheme" is crazy and borderline
           | criminal how its implemented. Pay days on retirement date
           | based on salary in the past several years, absolutely rampant
           | overtime fraud, cronyism abound everywhere. There are plenty
           | of stories of people retiring milking tens of thousands of
           | dollars from fraudulent overtime, getting a one time payment
           | on retirement in the hundreds of thousands, and then getting
           | a pension higher than their real salary.
           | 
           | I support pensions, but this has to be done at the federal
           | level, and funded heavily through taxes and pro-natalist
           | policies to keep demographics correct. Cities, states,
           | counties and companies are not able to adequately fund
           | defined benefit pensions.
        
             | 76384638 wrote:
             | A federal system sounds like a horrible idea and a really
             | dangerous single point of failure. The consequences of such
             | a system collapsing would be apocalyptic, and forcing
             | everyone into a single system without competition all but
             | guarantees corruption and mismanagement. Social security is
             | bad enough, please don't expand it.
        
             | supernova87a wrote:
             | I have heard these schemes and problems being perpetuated
             | by agencies like the police, where they have terminal
             | salary-based retirement benefit plans. (or in the style of,
             | "your last 3 highest paying years") The officers conspire
             | to get the retiring man as many hours as possible in his
             | last years, overtime etc. It's a bad oversight / policy by
             | the government that allows this to happen. And hard to
             | change politically.
        
         | nebula8804 wrote:
         | Pardon my language but where the f** is all this money going?
         | Is it even humanly possible for a group of regular joes to
         | audit where all the money is going? I think thats the first
         | thing that HAS to happen, a clear transparent audit down to the
         | penny. As a coder, this kind of complexity just drives me up
         | the wall.
         | 
         | Also on a side note, I love how sneaky that NY Times article
         | leaves out the option to cut _defense_. After all we can NEVER
         | reduce our military industrial complex, only cut everything
         | else to the bone.
        
           | creato wrote:
           | The top 3 chunks of spending are social security, Medicare,
           | and Medicaid. The majority of that spending is payments to
           | individuals or on behalf of individuals for medical bills.
           | You can probably find the exact fraction of overhead for each
           | program somewhere.
        
             | rootusrootus wrote:
             | > The top 3 chunks of spending
             | 
             | After national defense, you mean.
             | 
             | https://www.usaspending.gov/explorer/budget_function
        
               | creato wrote:
               | According to the link in the parent I replied to, social
               | security and Medicare are larger, by more than 0.7%
        
           | supernova87a wrote:
           | If you assume that most government programs have on the order
           | of a very few % misspending or outright fraud (which is the
           | case, aside from fiascos like the pandemic stimulus payments)
           | then you just have to assume that the real decisions to be
           | made are the "should we have this program at all" or "do
           | rates need to increase / benefits need to decrease". The
           | auditing and details will get worked out by an existing
           | government apparatus designed to ensure this. You cannot let
           | yourself get lost from the bigger picture believing that what
           | is missing is the audit. The big questions are what need to
           | be solved.
        
             | 76384638 wrote:
             | There is no reason to believe government programs are ran
             | efficiently or without large amounts of fraud and
             | corruption. There has to be a reason it costs governments
             | (including government contracts) several times as much to
             | do things compared to the private sector and non-profits.
        
               | JamesBarney wrote:
               | This isn't building houses, designing drugs, or
               | developing software. It's collecting and distributing
               | money, which the government is fine at.
        
               | supernova87a wrote:
               | I didn't say efficiently. I said fraud, which is a
               | different thing.
               | 
               | If you want to attack efficiency, you have a lot of work
               | to deeply change how the government, and in fact many
               | aspects of our public / government works. How they use
               | contractors, the kinds of contracts they're allowed to
               | enter into, the reviews and permitting and public
               | commenting they need to engage in, unions, labor rates,
               | etc. That would be as big a challenge as the above
               | debate.
        
               | 76384638 wrote:
               | Maybe I should not have said efficiently, as it really
               | understates it. It's like if someone gets hired to work
               | full time and then only works 20 minutes per week. Is
               | that person committing fraud or just inefficient? What if
               | the person gives part of their salary to their boss to
               | look the other way? What if the person is a company,
               | their boss is a politician, and the money is given to
               | campaign organisation?
        
           | icelancer wrote:
           | > Pardon my language but where the f* is all this money
           | going? Is it even humanly possible for a group of regular
           | joes to audit where all the money is going?
           | 
           | Not really, but for as bearish as I am on the government in
           | general, the Congressional Budget Office (CBO) is a bright
           | spot, and they do very good work at forecasting, auditing,
           | and evaluating tax cuts, tax increases, budget cuts, and so
           | forth. The average person can have faith that the CBO does
           | mostly good work because politicians on both sides of the
           | aisle really dislike the department when they tell the truth
           | about their plans.
        
           | HDThoreaun wrote:
           | The graphic lets you include defense cuts. It doesn't
           | originally because republicans have pledged to block any cuts
           | in defense spending.
        
           | noelsusman wrote:
           | https://www.usaspending.gov/explorer
        
       | julienchastang wrote:
       | As a side note, I like to listen to RFI or France Culture in the
       | morning in my time zone since there are a couple of good science
       | shows at that time (Autour de la question, La Science CQFD).
       | Lately, though those radio stations have just been playing music
       | as those shows are canceled during nationwide strikes in France.
       | :-(
        
       | cudgy wrote:
       | Top 10% wealthy of population in France holds almost 50% of net
       | wealth of the country, which is around $16 trillion. That gives
       | $8 trillion that could be taxed at higher rates, which is a far
       | greater pool to extract from than just billionaires discussed
       | throughout this thread.
        
         | sva_ wrote:
         | There will still be work to be done and I'm not sure if just
         | throwing money at it will make that work go away, if you don't
         | have the people?
        
       | lordnacho wrote:
       | The way retirement is done was broken from the start. If you have
       | a fixed age, you will get issues when the population pyramid
       | changes and fewer people are around to support the retired.
       | 
       | What the system ought to be is:
       | 
       | 1) Everyone who can't work gets a pension/state support/whatever
       | you want to call it. If you get run over by a car at 25, you are
       | on this list until you die and the state supports you. It's
       | expensive, but there aren't that many people who end up in this
       | state. Maybe a few percent, eg 3%.
       | 
       | 2) We set a pensioner ratio. For instance if it's 20%, the 3% of
       | people in cat 1 above get a pension, and the 17% oldest people
       | who aren't in cat 1 get a pension.
       | 
       | This would naturally change the age at which people get to
       | retire, moving it up and down depending on birth rates.
       | 
       | What we have is not workable. There aren't enough young people
       | for the number of boomers who are retiring, and not only that,
       | the older people turn out more and have more votes, enabling them
       | to force worse conditions on everyone else.
        
         | [deleted]
        
         | forgetfreeman wrote:
         | Really? Try injecting the majority of hoarded wealth into the
         | equation and re-run the numbers, and then tell us there aren't
         | enough workers to support the system.
        
           | HDThoreaun wrote:
           | How does the state seize the hoarded wealth when it can just
           | move to a tax haven?
        
             | bradlys wrote:
             | The state has this thing called the military. If it wants
             | to - it'll get you back and take your money by force.
             | 
             | I figured people would understand that this is an option
             | when people like Jack Ma go missing for a few months.
        
               | HDThoreaun wrote:
               | They do this and literally every billionaire will
               | immediately leave. Seems a bit short sighted.
        
               | bradlys wrote:
               | That's the fun part - your military makes it so they _can
               | 't_ leave.
        
               | HDThoreaun wrote:
               | Europe has open borders. How is that going to work?
        
               | bradlys wrote:
               | Europe doesn't have open borders... Even if they "left"
               | their home country somehow - extradition treaties are a
               | thing.
        
             | forgetfreeman wrote:
             | Capital flight is a potential risk, true. There are any
             | number of potential remedies on a niceness continuum
             | ranging from using the legal system to freeze assets on the
             | nice end to guillotines on the not-so-nice end. You're
             | encouraged to consult any number of history texts for past
             | examples of wealth transfer from the elite classes.
        
         | vikingerik wrote:
         | _1) Everyone who can 't work gets a pension/state
         | support/whatever you want to call it._
         | 
         | Of course, this creates a giant perverse incentive to get
         | yourself classified as "can't work". Ask the US Social Security
         | disability system how that goes.
        
           | lordnacho wrote:
           | It's an incentive, but not a perverse one. It's actually a
           | straightforward incentive: you get a meal ticket for life. A
           | perverse incentive is like the Hanoi rat bounty: it creates
           | more rats instead of fewer.
           | 
           | There's no way around it though. Either you make a judgement
           | about who gets a pension, or you just let people who've
           | gotten paralyzed in an accident try to fend for themselves.
        
         | lm28469 wrote:
         | idk man, I've been sold capitalism as this great wealth
         | generating machine, the trickle down economy, the invisible
         | hand of the free market, yadda yadda yadda
         | 
         | This isn't a maths equation, it's a societal choice, that's why
         | Macron doesn't get it, he's a bead counter for Maastricht, what
         | he does is making sure the spreadsheet is balanced
        
           | lordnacho wrote:
           | Got nothing to do with capitalism. If you're going to let
           | some people retire, some other people are going to have to
           | pay to support them. That's regardless of whether we're
           | hunter-gatherers, feudal, or post-industrial.
           | 
           | What I don't understand is how people can't see through the
           | framing. Do old people deserve to retire? Sure. Who is going
           | to take care of them? Younger people. How do they not get a
           | raw deal out of this?
        
       | MikeTheRocker wrote:
       | I have no comment on the issue at hand, but I've got to give it
       | to the French for their always impressive level of civil
       | engagement. It feels like Americans are far less willing to take
       | to the streets to support/oppose political causes than they were
       | in times past, and I think that's a shame.
        
         | klyrs wrote:
         | When Americans take to the streets in some states, it's legal
         | to drive through them.
        
           | [deleted]
        
           | cudgy wrote:
           | In which states? Under what conditions? What is allowed if a
           | mob threatens or begins to pull you and your family out of
           | your car and beat you to death?
        
             | advisedwang wrote:
             | This is a reference to Florida's Combating Public Disorder
             | Act (2021 HB1). Amongst other things it creates a defense
             | to civil damages for personal injury, wrongful death, or
             | property damage if the injured person was "acting in
             | furtherance of a riot" (a crime created in the same act).
             | This was widely reported at the time as being a response to
             | cases of people driving through or shooting rioters, which
             | was seen by the right wing as justified self defense
             | against criminals.
             | 
             | FWIW it looks like there's a injunction against the law
             | being implemented while courts decide on whether it
             | infringes right to protest [1]. From what I understand
             | though, that means any civil suits trying to use that
             | defense would be on hold.
             | 
             | [1] https://wusfnews.wusf.usf.edu/courts-
             | law/2023-01-25/floridas...
        
         | lm28469 wrote:
         | Looks like an unregulated militia of unarmed citizens does the
         | job
        
       | yoyohello13 wrote:
       | It's nice to see a populace willing to defend itself from the
       | ruling class. If only we had this kind of organizational
       | capability in the US.
        
         | MagicMoonlight wrote:
         | I love it when the ruling class campaigns to make the serfs pay
         | more tax so that they can retire in nicer castles
        
         | orwin wrote:
         | Thanks. Some of us were so well organized with cool songs and
         | stuff, I'm jealous so we're writing one for next week (probably
         | based on Vian, Lluis Llash or Ogeret).
        
       | grecy wrote:
       | And when Australia moves the retirement age to 67... nothing
       | happens. They're already talking about moving it to 69, to pay
       | for stuff like US nuclear submarines and even paying the French
       | $830,000,000 to NOT buy their nuclear submarines!
       | 
       | We can all learn A LOT from how the French hold their elected
       | representatives accountable, and don't let them get away with BS.
        
         | Zealotux wrote:
         | In France, most people have to work until 67 if they want to
         | get the full retirement benefit; that's a vastly overlooked
         | fact of the current debate.
        
           | Foobar8568 wrote:
           | Yet most people can't remain employed after a certain age.
           | 
           | edit:can't
        
       | moremetadata wrote:
       | This is another example of how the state gets its numbers wrong,
       | promising something it can not deliver without bankrupting the
       | country.
       | 
       | France is not alone, other country's have raised the pension age,
       | but other countries use their food legislation to keep the
       | population docile, high house prices to keep people from
       | protesting for fear of losing a roof over their head, and other
       | tactics people are getting wise to and slowly rejecting when they
       | wake up to the subtle forms of manipulation that goes on.
        
         | yodsanklai wrote:
         | > This is another example of how the state gets its numbers
         | wrong, promising something it can not deliver without
         | bankrupting the country.
         | 
         | France pension system isn't close to bankruptcy. It needs
         | _some_ adjustment but pushing retirement age isn 't the only
         | option. Also one thing to understand is that there are two
         | criteria to get a full pension
         | 
         | 1. work 43 years (this used to be 36.5 but has been increased
         | 10 years ago), so we're not feeling this yet
         | 
         | 2. be at least 62
         | 
         | The reform wants to push 62 to 64 in 2. The problem is that
         | educated people will already retire after 64 because of the
         | first constraint. So this reform targets explicitly those who
         | started to work younger, and who are also those with lower life
         | expectancy and with the hardest job. This is unfair. At the
         | same time, France (as in French citizen) has never been as rich
         | in history as it is now. There should be better wealth
         | redistribution here. It's very apparent when you look at the
         | numbers.
         | 
         | Another issue is employment. In practice, a lot of people
         | struggle to find a job when they are 55+. These reforms will
         | increase poverty in the country.
         | 
         | Last point. France isn't like the US were people are incentized
         | to build equity for their retirement. The rule of the game here
         | is that current employees pay for retirees and in exchange
         | expect their pension to be taken care of when they are older.
         | The rules are changing midway and people are upset about it.
        
           | ChemSpider wrote:
           | Many countries in the EU have 67 as retirement age - so 64
           | does not feel a big issue to me. (France and Malta are the
           | only one with 62)
           | 
           | https://en.wikipedia.org/wiki/Retirement_in_Europe
        
             | yodsanklai wrote:
             | France isn't 62, it is (according to your link)
             | 
             | > 62 to 67: Depends on the duration of contribution
             | (minimum 43 years)
             | 
             | For instance, for me it will be 67. Besides, these numbers
             | don't mean anything without context.
        
               | Jyaif wrote:
               | Only just realised it will be 67 for me as well. In a way
               | that's great news: I won't feel bad taking a sabbatical.
               | 
               | Unless the limit is raised of course.
        
           | jandrewrogers wrote:
           | > France isn't like the US were people are incentized to
           | build equity for their retirement.
           | 
           | This is true but puzzling for one reason: the US pension
           | system (Social Security) pays retirees the same amount of
           | money as the French one. US pensions are not ungenerous
           | compared to Europe. Americans are incentivized by the
           | government to build equity _in addition_ to their government
           | pension, so that they are not wholly dependent on the
           | government pension -- this has been a consistent part of the
           | messaging.
           | 
           | I think this takes some pressure off the US pension system,
           | since it creates a joint responsibility between the
           | individual and the government, rather than putting it all on
           | the government to unilaterally solve this problem to
           | everyone's satisfaction. I do understand that it is easier to
           | build equity in the US than Europe, so that probably is a
           | factor in how the population views it.
        
             | yodsanklai wrote:
             | Yes, an American friend of mine just started to claim its
             | SS pension and it seemed reasonable compared to what we
             | would get, but that's just one data point. And the US is a
             | much richer country with higher wages, so that plays a
             | role.
             | 
             | I think, for most French, the retirement model was that we
             | should own a house/apt by the time we retire, and then our
             | pension would be enough to cover our expenses. It seems
             | we're transitioning to a system more akin to the US and
             | it's causing some friction as we're not prepared.
             | 
             | Another interesting point to me is that the retirement age
             | is causing protests, but we were essentially screwed when
             | they increased the number of worked years from 36 to 43 -
             | which arguably was a necessary reform. Someone who started
             | to work at 23 (college graduate - HN demographics) won't
             | retire before 66. At that point, my concern isn't so much
             | about working until 66, but having a job at that age.
             | Working in tech, I don't see many people over 50 around me.
        
           | ur-whale wrote:
           | > France pension system isn't close to bankruptcy.
           | 
           | Citation required.
           | 
           | Last I looked, France's national debt as a percent of its GDP
           | wasn't exactly in happy territory.
           | 
           | On the other hand, if you believe that France will continue
           | to be able to borrow for eternity to feed its increasingly
           | large retiree population, then yes you are correct: when a
           | banker is always ready to lend you money however large your
           | existing debt, you can never physically go bankrupt.
        
             | yodsanklai wrote:
             | I can't find citation in English
             | 
             | https://www.retraite.com/dossier-retraite/le-deficit-du-
             | syst...
             | 
             | Roughly 20 billion euro per year, which isn't big.
             | 
             | For comparison, public debt is 3000 billion. Bernard
             | Arnault net worth is 120 billion (6 times more than 10
             | years ago), Total profit in 2022 is 40 billions.
             | 
             | There must be ways to have better wealth redistribution.
        
               | bsaul wrote:
               | The reason bernard arnault is rich is partly because of
               | tax cuts, but mostly because the luxury industry sells
               | well internationally.
               | 
               | The reason french people in general are poor is because
               | france, as a country, is collapsing, because french
               | people have been voting for the wrong people for the last
               | 50 years.
               | 
               | People that managed to sell their skills to other
               | countries are less affected.
        
           | bsaul wrote:
           | "france has never been as rich in history". Which number are
           | you talking about ?
           | 
           | It seems like a pretty hard fact to demonstrate. If you look
           | at the production of france-based international companies,
           | then you're also including the production performed by
           | citizen of other countries. If you look at total revenue per
           | inhabitant, then you need to adjust for inflation, and the
           | fact that some citizen gain revenues from production
           | performed in other countries (via shares, or simply working
           | in a multinational company)
           | 
           | What's clear however, is that france as never been ranked
           | _lower_ in every international ranking (education and
           | economy) as today.
        
             | Twisell wrote:
             | That's the point right wing neoliberal policies applied in
             | France over the last two decades have degraded life
             | conditions of the commons people and only maximized record
             | profit of french shareholders (this is what OP was
             | referring to "never as rich in history")
             | 
             | So yeah maybe it's time to stop trying to fix the french
             | model by applying the same recipes that increased
             | inequalities in the US in the first place...
        
               | bsaul wrote:
               | We are so far away from anything remotely looking like
               | liberalism.. france has the worst of both worlds : a
               | behemot of a public sectors, costing a fortune, but
               | undergoing enough random budget cuts to make it also very
               | bad at fullfilling its mission.
               | 
               | It's a disaster, but it's very very far from anything
               | remotely looking like a liberal economy..
        
           | dh2022 wrote:
           | But the rules have to change because the demographics
           | changed. The number of old people is increasing, the size of
           | the workforce is not increasing.
        
             | ChemSpider wrote:
             | That.Is.It. Simple math.
             | 
             | France will (have to) move to 64 and later to 67. If not
             | this year, then in a few years.
             | 
             | Any many EU countries might even have to move to 70,
             | Germany for sure.
             | 
             | People live longer (great), so they also have to work
             | longer.
        
               | Twisell wrote:
               | Do you frankly believe that french civilisation is dumb
               | or masochist enough to have produced like ten thousands
               | of hours of passionates TV debates (to pick only one
               | metric) if the underlying math was simple?
        
               | dh2022 wrote:
               | Because while the math is simple, the politics are _very_
               | complicated. Which fills these hours of passionate TV
               | debates.
        
               | conradfr wrote:
               | It's already 67 for a full pension if you have not
               | contributed enough "quarters".
        
               | aaomidi wrote:
               | So you're telling me with all the technological increases
               | we've had, France can't afford to feed its people for the
               | few extra years of life expectancy they have?
               | 
               | That seems absurd, and it seems like if that is truly the
               | case, then a lot of other things should change before
               | this.
               | 
               | France does have a history of not accepting crap from the
               | ruling class with bloody results for the ruling class.
               | Less the ruling class forget that.
        
           | conradfr wrote:
           | One more point is that the employment rate for 55+yo in
           | France is quite bad (56% in 2021 for 55-64yo).
           | 
           | So for a lot of people pushing the retirement age means
           | surviving two more years with their savings and the small
           | welfare benefit (as regular unemployment benefit is capped at
           | two years).
           | 
           | This is not addressed at all by this reform.
           | 
           | Also the government was caught lying about some aspects of
           | this reform (and still do).
           | 
           | edit: not sure why downvoted for adding facts
        
         | omegaworks wrote:
         | >promising something it can not deliver without bankrupting the
         | country.
         | 
         | If the government can not get something basic like covering
         | subsistence-level costs for its population over 62 working
         | without bankrupting the country, the government is broken, the
         | economic system is broken and shutting it down is an
         | appropriate response.
         | 
         | Technology and efficiency has caused labor productivity to
         | increase [1] and that increase has not been captured in wages.
         | It has been instead captured by private capital as profit.
         | 
         | 1. https://www.lemonde.fr/blog/piketty/2017/01/09/of-
         | productivi...
        
           | LeftHandPath wrote:
           | Fascinating article. Loved this quote in particular:
           | 
           | > The truth is that this trade surplus is not really a
           | choice: it is the outcome of decentralised decisions made by
           | millions of economic actors and in the absence of an adequate
           | mechanism for correction. To put it simply: there is no pilot
           | in the plane, or at least the pilots available are not very
           | accurate.
        
           | dh2022 wrote:
           | The reason for discrepancy between productivity growth and
           | wages stagnant is because the productivity initiatives were
           | created by a few people that benefited handsomely, not by the
           | masses employed in call centers / coffee shops / warehouses.
           | I think one probable reason for this change was technology -
           | technology made spreading knowledge and controlling processes
           | among thousands of entities a lot cheaper. Who are these few
           | people? Most likely you will find them in corporate centers.
           | These people constantly fine tune processes, haggle with
           | suppliers, diversify their suppliers, create new machines,
           | lobby for legislation to make off-shoring easier, etc... I
           | had the opportunity to work 4 years in Amazon as Financial
           | Analyst. None of the cost savings initiatives came from call
           | centers / distribution centers. Even more to the point, as
           | part of ACES program, bright motivated individuals in call
           | centers / distribution centers would be picked up and brought
           | to HQ so their initiatives can be applied to the entire
           | company. When I worked as Financial Analyst with Starbucks
           | there was only one cost saving initiative that came from a
           | store manager - that store manager figured out how to use
           | less milk for the lattes. All the other cost saving
           | initiatives came from HQ.
        
         | [deleted]
        
         | nitwit005 wrote:
         | No one can predict this stuff decades out. You'd need to
         | somehow predict technological changes, major wars, and other
         | events that require basically being a prophet.
         | 
         | Even when people do vow not to cut these programs, they are
         | planning on making a change, it's just what they plan to change
         | is the tax rate or amount of debt issued.
        
         | TrainedMonkey wrote:
         | AFAIK, pension age raise is driven almost entirely by
         | demographic collapse of the developed countries. Specifically
         | there are more people are retiring than entering the workforce.
         | After that happens pension funds start bleeding money and
         | something has to give. Pension age raise is a giant hammer, but
         | the alternatives include raising taxes, making healthcare
         | drastically cheaper, or Machiavellian tactics like banning
         | abortions/contraception 20 years prior...
         | 
         | France already has high taxes and amazing work-life balance. I
         | don't know much about state of medical industry to comment.
         | However, if its not completely terrible, then raising the
         | retirement age seems like the only knob that could be turned.
        
         | [deleted]
        
       | nemo44x wrote:
       | > "We haven't been heard or listened to...."
       | 
       | Maybe they have been heard and listened too and the
       | democratically elected government of the people disagrees. Just
       | because you don't get your way doesn't mean you haven't been
       | listened to.
       | 
       | > "We are using the only means we have left: it's the hard strike
       | ... we are not going to give up."
       | 
       | This is the part where the petulant child that doesn't get what
       | it wants threatens to hold its breath until it turns blue. This
       | is anti-democratic and nothing but coercive, naked extortion.
       | Like literally extortion.
        
         | Timshel wrote:
         | With comments like this you are closer to the petulant child
         | than the people, some with low paying jobs, who decided that
         | the issue is critical enough that they prefer a loss of income
         | in the short term ...
        
         | anigbrowl wrote:
         | Without commenting on the French government specifically (which
         | I haven't followed closely):
         | 
         | Consider the fact that politicians can be elected and then
         | _break the promises they made during the campaign_. The
         | electoralist response to this is  'well you can vote them out
         | next time,.' But that ignores the cost of the damage that can
         | occur during the interval, plus it's not clear how the populace
         | is supposed to hold other politicians to account - to the point
         | that there is a general _expectation_ of politicians being
         | dishonest and mendacious.
         | 
         | Really, in what other job are you only subject to review every
         | few years and if people don't like what you're doing in the
         | meantime you can reply with complete BS, often overtly?
         | 
         | Democratic elections are a good thing, but they are not the be-
         | all and end-all of politics. Strikes and boycotts are
         | absolutely a legitimate form of political expression, in which
         | labor or consumer market participants coordinate their economic
         | activity to obtain political leverage. If you won't tolerate
         | anything other than elections, North Korea has those.
        
         | mcsniff wrote:
         | "In the final analysis, a riot is the language of the unheard."
         | - MLK
         | 
         | Protesting is the mechanism they have at their disposal.
        
       | legitster wrote:
       | My grandfather a few years back passed a rather profound point in
       | his life - he had been retired so long that he officially spent
       | less of his life not working than working (despite entering the
       | workforce at 15).
       | 
       | And it's not lost on me I am essentially doing double work: it's
       | not enough for me to generate enough economic value for myself,
       | society kind of depends on me to generate enough surplus value to
       | cover an entire life's worth of labor (Or more! After all I
       | started much later than my grandfather).
       | 
       | In a way, when Keynes predicted that everyone in the future would
       | work a 20 hour workweek, he was right! He just didn't appreciate
       | how much we would use those productivity gains to backfill that
       | vacation time later in life.
        
       | BadCookie wrote:
       | These stats are for the U.S., but one thing that usually get
       | ignored in these retirement discussions is just how massively
       | life expectancy depends on income level and sex:
       | http://www.equality-of-opportunity.org/health/
       | 
       | Raising the retirement pension age screws over the poor,
       | especially poor men. Perhaps retirement age should be tied to
       | income/wealth somehow ... and maybe even sex (as controversial as
       | I imagine that would be).
        
         | notch898a wrote:
         | I figured the one upside of retirement was it was a baseline
         | for the poor. If it screws them over too I think it should just
         | be eliminated all together and return the tax to the worker to
         | save/invest on their own.
        
           | AussieWog93 wrote:
           | That's basically the system we started rolling out in
           | Australia in the 90s (see mandatory super).
           | 
           | Unfortunately it doesn't work for everyone, though, and a
           | traditional pension is still needed as a backup.
        
             | notch898a wrote:
             | It seems like unfortunately many governments have proven
             | incapable of responsibly handling the money. In the case
             | the government is entirely incapable of handling the money
             | I'd at least see the worker get that tax waved to have
             | something for whatever meager existence is left with the
             | money.
        
               | AussieWog93 wrote:
               | Honestly, our system works really well for 90% of people.
               | Look into it.
        
       | Overtonwindow wrote:
       | My wife and I only just started putting money away for
       | retirement. It took us until 40 to get to a financial position
       | where we could. At this rate, we can retire eventually, but it
       | will always be tight. Likely looking at 70 at the earliest..
       | That's if no one has a major health crisis.
        
       | karaterobot wrote:
       | Honest question: what should the French government do instead?
       | Some people in this thread have said that the government doesn't
       | need to increase the retirement age by 2 years. If that's so, why
       | are they proposing to? Have they done the math incorrectly, are
       | they being needlessly cruel, or ...?
        
       | lm28469 wrote:
       | That's what you get when 60%+ of the wealth generated in the last
       | two years went to the top 1% and you ask the bottom 80% to work
       | two years longer to cover for an imaginary deficit
       | 
       | fyi taxing the 40 richest people in France 2% more would cover
       | the same amount of money as having the entire active population
       | work 2 more years.
       | 
       | edit: since it's not clear, I'm talking about pension related
       | debt (the main argument of the french government for raising the
       | retirement age), obviously not the national debt/deficit
       | 
       | edit2: ah and 25% of the poorest workers are already dead by 62
       | https://www.liberation.fr/resizer/J5W0vs_DrAdsjx5xHUxhhC_otn...
       | 
       | and 30% of people above 60 are unemployed because nobody hire
       | seniors https://lemagdusenior.ouest-france.fr/article-78-combien-
       | fra...
        
         | earlyam wrote:
         | I don't doubt you, but do you have a source? I don't know
         | anything about the economics of France and I'm kind of
         | interested now.
        
           | lm28469 wrote:
           | https://www.oxfam.org/en/press-releases/richest-1-bag-
           | nearly...
           | 
           | https://www.tf1info.fr/economie/reforme-des-
           | retraites-2023-y...
           | 
           | https://www.cor-retraites.fr/node/595
           | 
           | https://linsoumission.fr/2023/01/16/retraites-
           | milliardaires-...
        
             | HideousKojima wrote:
             | The total net worth of all of French billionaires is ~half
             | a trillion dollars, so it could only cover the 30 billion
             | per year pension deficit for about 15 to 20 years if you
             | seized _100%_ of their wealth (and somehow didn 't cause
             | disastrous economic side effects in the process). Not
             | seeing anything in your first two links to support your
             | claim, not going to bother with the other two links. I just
             | really wish the "eat the rich" UBI crowd wasn't so
             | innumerate.
        
               | lm28469 wrote:
               | > 30 billion per year pension deficit
               | 
               | > I just really wish the "eat the rich" UBI crowd wasn't
               | so innumerate.
               | 
               | It was +3.2b in 2022, + 0.9m in 2021, with a slight
               | deficit predicted in the short term and equilibrium from
               | 2030s (average scenario)
               | 
               | tl;dr : it's not a big deal, and certainly not the real
               | reason of the change in retirement age
        
             | earlyam wrote:
             | Thanks
        
         | compiler-guy wrote:
         | France's deficit is not imaginary. Yes, taxing the right people
         | the right amounts (and successfully getting them to pay) would
         | solve the problem, but the hole that needs to be plugged is
         | 100% real.
        
           | lm28469 wrote:
           | > France's deficit is not imaginary
           | 
           | The deficit due to the pension system*, even the governmental
           | agency in charge of it said so
        
             | throwaway5959 wrote:
             | So there is a hole?
        
               | lm28469 wrote:
               | According to Macron, yes. According to the people in
               | charge of determining if there is one, no
        
         | boole1854 wrote:
         | > fyi taxing the 40 richest people in France 2% more would
         | cover the same amount of money as having the entire active
         | population work 2 more years.
         | 
         | My back-of-the-envelope calculations:
         | 
         | Sum of wealth of top 40 richest people in France: 556 billion
         | [1]
         | 
         | Annual income of top 40 richest people in France, assuming 10%
         | growth of wealth: 56 billion
         | 
         | 2% additional tax on that income: _1 billion_
         | 
         | Size of active working population of France: 40.8 million [2]
         | 
         | Size of about-to-retire population: 1 million (guess based on
         | [3])
         | 
         | Annual pension cost per retiree: 18000 [4]
         | 
         | Direct pension savings by delaying retirement by 1 year: _18
         | billion_
         | 
         | [1]
         | https://en.wikipedia.org/wiki/List_of_French_billionaires_by...
         | 
         | [2] https://fred.stlouisfed.org/series/LFWA64TTFRQ647N
         | 
         | [3] https://www.statista.com/statistics/464032/distribution-
         | popu...
         | 
         | [4]
         | https://www.connexionfrance.com/article/Practical/Everyday-L...
        
           | incrudible wrote:
           | I think the idea is to tax the wealth, not the income on it,
           | which at 10% would be well above the yields of pretty much
           | any asset.
        
           | sam_lowry_ wrote:
           | This is what? Personal wealth? But wealth in France is rarely
           | personal. It is rather distributed over controlling shares of
           | private businesses and foundations, board seats and god knows
           | what.
           | 
           | The richest family of France counts at least 700 members and
           | most of these people run businesses from retail to mobile
           | apps to media.
           | 
           | The French are no stupid. The state can not easily extort
           | money from the likes of Mulliez, but it should try harder,
           | not seek easy money from the working class.
        
           | lm28469 wrote:
           | Feel free to contact oxfam:
           | https://www.oxfamfrance.org/rapports/nouveau-rapport-la-
           | loi-...
        
             | HideousKojima wrote:
             | Where in your link does it say taxing the ultra wealthy
             | would be enough to cover the pension shortfall? I'll give
             | you a hint: nowhere.
        
               | lm28469 wrote:
               | > Oxfam France a calcule que seulement 2% de la fortune
               | des milliardaires francais suffirait a financer le
               | deficit attendu des retraites.
        
               | danaris wrote:
               | I suspect the disconnect, then, is that the statement you
               | quote appears to be referring to a tax on wealth, not
               | income.
               | 
               | Moving the 2% to that puts it in the right order of
               | magnitude; at that point, the discrepancy is likely to be
               | in the guess of the retiring population size.
        
               | dahfizz wrote:
               | You claimed:
               | 
               | > taxing the 40 richest people in France 2% more...
               | 
               | That quote is about a 2% wealth tax.
        
           | marcusverus wrote:
           | > Annual income of top 40 richest people in France, assuming
           | 10% growth of wealth: 56 billion
           | 
           | Unrealized capital gains aren't "income". Are the words
           | "wealth tax" scary or something?
        
         | HideousKojima wrote:
         | No, this is what happens when you make almost the entire
         | population dependent on the state for retirement, it makes
         | changes and cuts difficult and limits the options the country
         | has to adapt to changing economic, demographic, and other
         | circumstances. Kind of like how at the start of COVID in the US
         | there were arguments like "We can't close down schools because
         | poor kids won't be able to get their free school lunches."
         | 
         | Edit: I looked it up and the net worth of all of France's
         | billionaires is ~half a trillion dollars, so even if you seized
         | it all it would basically cover the French government's budget
         | deficits for a grand total of two years, assuming they were
         | actually able to seize it all and it didn't have disastrous
         | economic side effects. That's France's total deficit, not sure
         | how much of that is directly attributable to the pension
         | system.
        
           | lm28469 wrote:
           | I'm talking about pension related debt, not the entire
           | national debt
           | 
           | > Kind of like how at the start of COVID in the US there were
           | arguments like "We can't close down schools because poor kids
           | won't be able to get their free school lunches."
           | 
           | You should ask yourself why kids can't get their basic needs
           | such as nutrition covered then...
        
             | HideousKojima wrote:
             | The pension deficit is 30 billion a year, so seizure of
             | _all_ French billionaires ' wealth would still only cover
             | the shortfall for 15 to 20 years.
        
               | orwin wrote:
               | 30 billion a year? Second time I read this, where does it
               | come from? I thought the system was beneficiary in 2021
               | and 2022? +900M in 2021 and +3B in 2022?
               | 
               | I'd love to find where your information come from, mine
               | is from the Cors (public entity) and from Agirco (private
               | entity). Do you have this information from Facebook?
               | 
               | Edit: full disclosure, I just walked 3 hours, danced in
               | front of the police while holding a sign, so I might have
               | my sources wrong, but I tried to only get them from ddg
               | front page. Didn't see the 30B figure anywhere, I know
               | it's a lie, and I just want to embarrass parent poster
               | for it.
        
               | lm28469 wrote:
               | No deficit for now:
               | https://www.dna.fr/social/2022/09/13/le-regime-de-
               | retraite-b...
               | 
               | Slight deficit expected in short term
               | 
               | Equilibrium at medium term
        
           | throwaway5959 wrote:
           | Don't worry, those free school lunches won't last for much
           | longer at the rate things are going.
        
           | yoyohello13 wrote:
           | Yes, much better to leave them to their own devices. Then the
           | state is free to just let those inconvenient poor people die.
        
             | fvdessen wrote:
             | The guy you replied to didn't advocate to leave people to
             | their own devices but to have a retirement system that is a
             | healthy mix of different sources of revenue / investments
             | rather than 100% from the state.
        
               | HideousKojima wrote:
               | And similarly I wasn't saying to not feed poor kids, I
               | was saying that by making it dependent of physical
               | schools it limits the ability of the country to adapt and
               | make changes like remote learning, responding to a
               | pandemic (though I'm doubtful school closures
               | accomplished much if anything in that regard), etc.
               | Flexible ways to accomplish the same or similar goals are
               | preferable to enshrining one specific way of doing so in
               | law.
        
         | legitster wrote:
         | Money is only superficially the issue. Your currency is only as
         | valuable as there is a market of goods and services to spend it
         | on.
         | 
         | Even if you ate the rich and took all of their money, all
         | you've done is created inflation because the actual value of
         | the economy hasn't shifted. An economy is more about the
         | "stuff" than the money - even Marx would have agreed with as
         | much.
         | 
         | So this is only ostensibly about funding a deficit - this is
         | just as much a measure to prevent a GDP freefall from a
         | shrinking aging working population.
        
         | kwere wrote:
         | Or maybe the poorer parts of society should stop trying to be
         | overeliant on the tax levied on a minority of skilled earners
         | (so no trust fund kids) creating welfarism/populism, breaking
         | the fabric of society (as in ancient Rome),incentivizing
         | emigration/delocalization of taxbase; and try to be more
         | selfsufficient from a budget stanpoint, like having a self-
         | funded pension system, that in France case would be increasing
         | contribution, raising retirement age, linking pension output to
         | having kids (to stabilize age pyramid)
         | 
         | here France revenues brakdown:
         | https://www.oecd.org/tax/revenue-statistics-france.pdf
        
           | tgv wrote:
           | Blame and tax the poor, and force them to breed. Nice plans.
           | Perhaps you'd like to start your plan by swooping into France
           | via Belgium.
        
             | kwere wrote:
             | ironically the leverage that poor people had and have is
             | their children, once upon a time for farming landlords &
             | factory owners, today for government revenues, bcs poor
             | people & middle class pay the most taxes in % as VAT,
             | income tax, fees, contributions, etc... and dont have tax
             | planning while making the welfarism looking remotely
             | sustainable, but with modern demographic trends things are
             | changing for the worse, and with printing money and "eating
             | the rich" as the only policies on the table, we dont solve
             | anything except kicking the can down the road
             | 
             | And for the invading France via Belgium joke, it is
             | hilarious bcs one of the compelling reasons why he started
             | his aggressions in 1939 before the nation was ready was
             | because he emptied German coffers to prop up his
             | Nationalsocialistic welfare system and (he felt he) needed
             | just an imperialistic trip to refill them[0]. the rest is
             | history
             | 
             | [0]https://youtu.be/mLHG4IfYE1w?t=1108
        
           | lm28469 wrote:
           | So what the US is doing ?
           | 
           | I don't feel like they're doing much better, especially for
           | the bottom 30%
        
             | kwere wrote:
             | USA is a lot inefficient with spending money as a lot of it
             | get syphoned in one way or another from various interest
             | groups, from big pharma/healthcare/insurance, hedge funds
             | that run universities to local government that run homeless
             | shelter in opaque way (ask Cuomo sister). As OECD data, US
             | social spending as % of GDP is above OECD average at
             | 22.7%[0]
             | 
             | [0]https://data.oecd.org/socialexp/social-spending.htm
        
             | forgetfreeman wrote:
             | They aren't doing any better, and for the same reasons.
        
               | lm28469 wrote:
               | > the same reasons.
               | 
               | Which reasons ? Both systems are about as opposed as you
               | can imagine without straight up walking out of capitalism
        
               | forgetfreeman wrote:
               | Yes, keep going...
        
               | lm28469 wrote:
               | You're the one making vague arguments, I'm not going to
               | do your homework
        
           | forgetfreeman wrote:
           | "skilled earners" here being a euphemism for inherited wealth
           | oligarchs and trust fund kiddies, or are we pretending wage
           | earing individuals are included in the top 1%?
        
             | cperciva wrote:
             | _are we pretending wage earing individuals are included in
             | the top 1%?_
             | 
             | You seem to be confusing the top 1% with the top 0.01%. The
             | vast majority of top 1% income earners -- in Canada, the
             | number was recently reported as 95% by Statistics Canada --
             | are employed, with the largest numbers being in management,
             | medicine, and "business professional" (lawyers,
             | accountants, etc) professions.
        
               | forgetfreeman wrote:
               | I suppose that's fair. Quibbling about where to put the
               | decimal point doesn't invalidate the larger issue
               | however.
        
             | kwere wrote:
             | most income for the state is from income tax, trust fund
             | kids and oligarchs dont have high income tax[0] , and the
             | wealth tax can be easily lowered by tax planning
             | 
             | [0]https://www.oecd.org/tax/revenue-statistics-france.pdf
        
               | forgetfreeman wrote:
               | Seems like a fixable problem.
        
         | [deleted]
        
         | incrudible wrote:
         | Wealth was not generated, prices rose. Those are valuations,
         | they did not come out of the pockets of the workers. A wealth
         | tax would suppress those prices, not to mention capital flight.
         | It just does not work. If it did, everyone would do it.
        
           | lm28469 wrote:
           | So I pay my gas twice as much as 5 years ago, the dude
           | selling the gas gets twice as much money, but nothing changed
           | ?
           | 
           | ok
           | 
           | http://cdn.statcdn.com/Infographic/images/normal/27887.jpeg
        
             | incrudible wrote:
             | The gas supply did in fact change, as did demand. Even a
             | small shortage can drive prices up dramatically, because
             | gasoline is critically important.
        
               | lm28469 wrote:
               | Prices yes, you're looking at _profits_ though
        
               | incrudible wrote:
               | If you have a 5% profit margin and the price doubles, so
               | do your profits. Of course you _could_ lower your profit
               | margins and pass up on the opportunity of the decade.
        
       | myshpa wrote:
       | The world needs basic income, guaranteed housing, internet and
       | food.
       | 
       | We have the means to do it.
       | 
       | Upto 75% of population is employed in bullshit jobs anyway (= not
       | producing anything).
       | 
       | Only 2% of population working in agriculture already produces
       | food for 10+ billion people. Include just plant-based food in
       | basic income population (== use just 25% of agriculture land) and
       | automate distribution of vegetables, beans and grains (just look
       | at amazon with its warehouses, it's doable) and transport
       | (automatic trains), and nobody has to be hungry again.
       | 
       | We'll save the environment, stop biodiversity loss and store more
       | carbon than produced since 1750 (reforest grazing lands), solve
       | the world hunger, save the environment (no need to own so much
       | cars, burn so much fuel and time going to meaningless jobs, to
       | pay for a roof over ones head with 40 years of ones life, no need
       | for so much pesticides/herbicides, deforestation etc.) ...
       | 
       | Hm ... time to stop dreaming. Back to work.
        
         | yrdmb wrote:
         | > The world needs basic income
         | 
         | That's all we need. Basic income will allow people to get
         | housing, internet and food.
        
           | myshpa wrote:
           | Yes. But basic income means different things for different
           | people.
           | 
           | I wanted to emphasize the level of sufficiency it should
           | provide.
        
         | onlyrealcuzzo wrote:
         | > Upto 75% of population is employed in bullshit jobs anyway (=
         | not producing anything).
         | 
         | Source?
         | 
         | I love that so many people are convinced everyone but them is
         | doing nothing and somehow getting paid for it.
         | 
         | > Only 2% of population working in agriculture already produces
         | food for 10+ billion people.
         | 
         | What's your point?
         | 
         | Who's going to take care of sick people? Who's going to educate
         | our next generation? Who's going to maintain our
         | infrastructure? Who's going to police people? Who's going to
         | defend our country from war? Who's going to make sure your
         | cellphone still works? Who's going to make sure your house
         | still has electricity? Who's going to make sure the laws are
         | being followed? Who's going to make new entertainment for you?
         | 
         | We need to do more than just have beans to eat.
        
           | myshpa wrote:
           | > Source?
           | 
           | https://libcom.org/article/phenomenon-bullshit-jobs-david-
           | gr...
           | 
           | https://en.wikipedia.org/wiki/Bullshit_Jobs
           | 
           | > Who's going to take care of sick people? Who's going to
           | maintain our infrastructure? Who's going to police people?
           | Who's going to defend our country from war? Who's going to
           | make sure your cellphone still works? Who's going to make
           | sure your house still has electricity? Who's going to make
           | sure the laws are being followed? Who's going to make new
           | entertainment for you?
           | 
           | You simply seem uninformed. My english is not so good to be
           | persuasive enough, somebody please help me.
           | 
           | Basic income doesn't mean all people will stop working. Jobs
           | would still exist, and people would still choose to work, but
           | for different reasons than they do now. They could do what
           | they want, and stop anytime for any period of time, and start
           | whenever they would feel like it.
           | 
           | We have voluntary firefighters now, don't we?
           | 
           | People just wouldn't have to choose job based on its capacity
           | to provide sustenance for their family, but do what they love
           | no matter the financials.
           | 
           | Many teachers and nurse are now leaving the profession (in
           | the US), because they're unable to earn enough to sustain
           | their living expenses and have to work multiple jobs.
           | 
           | > Who's going to take care of sick people?
           | 
           | Do you think that doctors and nurses are in it for the money,
           | and nothing else than money? No, they do it because they want
           | to help people. I don't fully understand it, but it is so.
           | And they would still be awarded for choosing that vocation.
           | 
           | > Who's going to defend our country from war?
           | 
           | You're an american, are you not? Are you people really that
           | scared? With all the money on your offensive defences and
           | with bases in 3/4 of all countries of the world?
           | 
           | > Who's going to police people?
           | 
           | Don't keep people in poverty, and you wouldn't need so many
           | policemen and prisons. Do you know you're 1st in the world in
           | this area too? And do you think there would not be anyone who
           | would want to police, without being forced to earn a living?
           | 
           | > Who's going to make new entertainment for you?
           | 
           | All those youtube attention seekers are not going anywhere.
           | 
           | Basic income would start a massive creativity boom. I'm sure
           | of it.
        
           | ErikVandeWater wrote:
           | > I love that so many people are convinced everyone but them
           | is doing nothing and somehow getting paid for it.
           | 
           | That's not the point. The point is what they are producing
           | isn't contributing value to our lives, or actually creating
           | negative value. Building highways looked very productive on
           | paper in the 50's, but now we live in car dependent sprawl,
           | and we continue to pay people to maintain that sprawl when we
           | could have walkable cities that are human friendly.
        
       | AceJohnny2 wrote:
       | The french pension reform attempts have been going on for
       | _decades_. I remember in the mid-90s a huge, weeks- (months-?)
       | long public transit strike which, funnily enough, kick-started
       | Parisian 's interest in roller-blading (and led to the awesome
       | weekly Friday-night roller-blading tour [1]. If it's your thing,
       | I highly recommend it! But be prepared to have to go over some
       | cobblestone sections)
       | 
       | France's system has the working population pay for the pension on
       | the retirees, as a social security tax. With the retirement age
       | around 62-65, with the lifespan increasing, and with the Baby
       | Boomers retiring, it isn't a sustainable system.
       | 
       | Every president, be they socialist or liberal, have attempted to
       | tackle the issue, only to get country-paralyzing backlash. People
       | will nitpick the details of whatever current plan proposes, but
       | the fundamental problem remains.
       | 
       | [1] https://pari-roller.com
        
         | retinaros wrote:
         | the system IS sustained. the main white collar one even
         | generates profits. increase the salaries that will increase
         | money being sent to retirement funds and it won't be a problem
         | anymore. france income per capita has been the same for the
         | past 20 years. they are stealing our wages to make us slaves
         | and they blame us for not working enough.
         | 
         | christine lagarde pushed for blocking wage rise in the EU,
         | european commission non elected leaders are pushing for it too.
         | salaries for blue collar in france are becoming those of much
         | poorer countries and in a globalised world where most of the
         | goods are made in countries where salaries are rising as well
         | as inflation, blocking our wages is only sending us to the
         | third world .
         | 
         | it is nothing else than a betrayal at the highest level of the
         | state
        
           | vkou wrote:
           | > and in a globalised world where most of the goods are made
           | in countries where salaries are rising as well as inflation,
           | blocking our wages is only sending us to the third world .
           | 
           | Just throwing this out here, but in a globalized world, by
           | what mechanism would one expect Europeans and Americans will
           | be able to enjoy a greater standard of living than people in,
           | say, Asia?
           | 
           | Are they somehow smarter? More productive? In control of more
           | natural resources? If not, why would you expect that the
           | first-third world gap to not continue to normalize?
        
             | wizzwizz4 wrote:
             | > _In control of more natural resources?_
             | 
             | I mean... yeah. That's not really related to the thread's
             | topic, though.
             | 
             | > _why would you expect that the first-third world gap to
             | not continue to normalize?_
             | 
             | I don't think that's the criticism. "Blocking our wages"
             | probably isn't increasing the wealth of the people in Cold
             | War non-aligned countries: is the money going to them,
             | somehow? The direct effect is that employers (= the people
             | who would be paying the extra wages) don't have to spend as
             | much money paying their employees. What knock-on effects
             | would lead to _that_ improving things for people?
        
             | bboygravity wrote:
             | Because the USD is the world reserve currency.
             | 
             | That's why.
        
             | 4gotunameagain wrote:
             | well, we _do_ have a head start and stable
             | (post?)industrial societies with mechanisms already set in
             | place.
        
             | retinaros wrote:
             | its normalizing but for the worst in developed economies.
             | housing is now out of reach while decades ago a blue collar
             | salary was enough,to own a house.(in the USA you can still
             | get six digits blue collar jobs that lift you out of
             | poverty and give you access to housing. in france that is
             | merely a dream or a netflix show) today already for many
             | qualified workers (tech for instance) staying in india vs
             | coming to france is better (there are other factors like
             | healthcare or other that are at play but in pure economic
             | power it would just be better to have a good it job in
             | india vs europe) that was definitly not the case 20 even 10
             | years ago.
        
               | ubercore wrote:
               | Six figure blue collar jobs are not super common in the
               | US.
        
               | notch898a wrote:
               | Definitely one of those "it depends" situations. For
               | instance, you could be illiterate middle school drop-out
               | and pretty easily make very close if not six figures if
               | you worked near minimum wage canning work all year in
               | Alaska or something by working the season of every
               | available catch (16 hours a day lots of OT). And you'd
               | bank all your post-tax earnings as they provide the
               | housing/food normally too.
               | 
               | You may work yourself to the bone but pretty much anybody
               | in the US can make a killing.
        
         | flashfaffe2 wrote:
         | French here:
         | 
         | Though the problem is well known (at least for 40 years), No
         | french governments has considered diversifying the source of
         | the revenue funding the pension system. Actually its worse as
         | the only capitalisation existing are in a process to be
         | nationalised.
         | 
         | Moreover, this reform is purely the outcome of political game.
         | Macron electorat is mainly the 'boomers' who fully beneficiated
         | of th situation ( in fact their pension are impacted despite
         | having higher wealth than the majority of the workers).
         | 
         | I personally would consider a reform only if there an effort
         | requested for everyone.
        
           | rahen wrote:
           | As a French, I have absolutely no trust in the government to
           | manage my pension. And no desire to hand them that power
           | either.
           | 
           | But as usual they'll fight tooth and nail to keep their
           | monopoly, as they like us to depend on them as much as
           | possible.
        
             | ur-whale wrote:
             | Vote with your feet (i.e: walk away from it all), it's the
             | only option.
        
               | flashfaffe2 wrote:
               | What I personally did but very hard to convince others to
               | follow that way...
        
           | andrekandre wrote:
           | what is the cause of not having enough funds to maintain the
           | current retirement age?
        
             | retinaros wrote:
             | there are enough. there are using statistical models to
             | predict that we wont have enough in the coming decades.
             | 
             | a biased model that is financed by private pension funds
             | and led by mckinsey... I have a very simple way to make
             | enough funds to maintain current retirement age : increase
             | our salaries. france income per capita is the same for the
             | past 20 years, if you raise salaries it will raise how much
             | money goes to pension funds. problem solved
        
               | capitalsigma wrote:
               | Increasing salaries will increase the cost of goods and
               | services, meaning that more savings are required. It
               | doesn't necessarily balance.
        
               | supernova87a wrote:
               | And where does the money for raising salaries come from?
        
             | maxlamb wrote:
             | Same reason as most other countries - reversal or
             | population age pyramid because they're of baby boomers
             | generation being more populous than younger ones. Soon
             | there will be more retired baby boomers than gen X and
             | millennials working so there will be less money going in to
             | pension funds than going out.
        
         | bsaul wrote:
         | baby boomers aren't retiring, they're _dying_. The pension
         | system has already been through its worst period and managed to
         | not get too badly hurt.
         | 
         | I really don't understand this reform. However for me to
         | understand it, one would need an 8 hour video stream full of
         | spreadsheet with an actual expert working on that reform.
         | 
         | And no media is ready to do that
        
         | rat9988 wrote:
         | it isn't a sustainable system.
         | 
         | This is wrong. We have an institute that has one mission.
         | Evaluate its sustainibility, and it disagrees with you.
        
           | Alupis wrote:
           | In other news, lawyers say you need a lawyer, plumbers say
           | you need a plumber, etc.
           | 
           | Not a single pension program on earth is sustainable -
           | including the US' Social Security System. All of them are
           | political 3rd rails and kill careers of anyone seeking to do
           | meaningful reform.
           | 
           | Why did we get to a situation where the _government_ is in
           | charge of safeguarding your retirement and wellbeing? It 's
           | insane... we should compel people to have IRA's or some sort
           | of retirement account, but the money needs to be under the
           | control of the person it belongs to.
        
           | golemotron wrote:
           | We should make a list of organizations that have one mission
           | and fail in that mission. It would take much time.
        
             | Twisell wrote:
             | Well the irony is that our french government is precisely
             | relying on one cherry picked scenario of this organization
             | to justify it's reform...
             | 
             | So it's why polls quite unanimously report that 70% of the
             | population is opposed of this reform on a quite developer
             | friendly axiom : "When it ain't broken don't try fix it!"
             | 
             | Bonus fun fact 1 : Even with the cherry picked scenario of
             | our gov the system might be in slight imbalance starting
             | 2027 while it's currently balanced. To put this in
             | perspective 10 years ago the same organisation predicted a
             | great imbalance for today.
             | 
             | Bonus fun fact 2 : The 70% rejection poll is an average.
             | One of the only group that is less rejecting the reform
             | consist of already retired people. There is a growing
             | resentment against baby boomers in the xyz generation.
        
           | skywal_l wrote:
           | That is not correct. Have a look at this 20mn interview:
           | https://www.youtube.com/watch?v=ngnxmampNBM
        
         | joe_the_user wrote:
         | _The french pension reform attempts have been going on for_
         | decades _... Every president, be they socialist or liberal,
         | have attempted to tackle the issue, only to get country-
         | paralyzing backlash.... it isn 't a sustainable system._
         | 
         | Good For them?
         | 
         | They've been trying to change this forty years? So they were
         | trying to change this back when it ipso facto was sustainable,
         | since it's survived 'till now. How credible does that make the
         | current effort.
         | 
         | Certainly, America has changed a bunch of supposedly
         | "unsustainable" things into ... utter misery for the average
         | person.
        
         | omegaworks wrote:
         | France has control of its currency. The pension system does not
         | need to be paid by taxes on working people.
         | 
         | Oops I forgot about the Euro. Oh well, so much for sovereignty.
        
           | tiedieconderoga wrote:
           | If they print more money to meet their pension obligations,
           | that causes inflation which quickly erodes the value of the
           | payments.
           | 
           | So, printing money to meet pension obligations has a similar
           | effect to reducing the amount which is paid out.
           | 
           | Also, I don't think many people accept Francs as currency
           | anymore.
        
             | retinaros wrote:
             | nope it is not the same outcome. one sacrify the working
             | class and the current generation that went through multiple
             | economic crisis and a horrible housing market while the
             | other sacrifies boomers that lived through full employment
             | and the golden age of france economy. I ve made my choice.
        
             | omegaworks wrote:
             | > that causes inflation which quickly erodes the value of
             | the payment
             | 
             | Pension payments cover basic subsistence-level costs for
             | goods that can be mitigated by supply-side production and
             | productivity increases. Claiming that they cause inflation
             | is just rebranded austerity politics. Inflation is caused
             | by fraudulent debt-relief for "businesses" like we saw with
             | PPP and low interest rates that create asset price and
             | shitcoin bubbles.
        
               | argentinian wrote:
               | > Inflation is caused by fraudulent debt-relief for
               | "businesses"
               | 
               | Sure? Tell that to Argentina, Venezuela, Zimbawe and
               | Turkey.
        
               | yazantapuz wrote:
               | I don't know why someone downvoted you, as you are right.
               | But it seems that gigaton of useless little pieces of
               | paper called pesos with which that the governments has
               | flooded the economy since decades has nothing to do with
               | out inflation problems.
        
           | AceJohnny2 wrote:
           | > _France has control of its currency_
           | 
           | No it does not. It uses the Euro, which technically requires
           | it to maintain a balance.
        
           | sokoloff wrote:
           | Honest question: is that the case? I thought the Euro
           | adoption meant they couldn't print currency with the same
           | freedoms that say the US or UK could.
        
             | ccooffee wrote:
             | You are correct and Euro comes with restrictions on
             | creating currency for macroeconomic reasons. This was in
             | the limelight during the 2008-2012 Greek debt crisis, and
             | also came up around that time for other EU countries (Spain
             | and Portugal at least). Additionally, Iceland, which does
             | not use the Euro, had at one time pegged their krona to the
             | Euro which caused issues in the 2008-2012 time period
             | (though as I recall the main problem had to do with some
             | other nation taking a major Icelandic bank into
             | receivership post-2007 collapse).
        
         | justeleblanc wrote:
         | Every single pension system has the working population pay for
         | the retirees. Where do you think the money comes from? Thin
         | air? Any increase in the value of pension funds (for example)
         | is coming from the workers.
        
           | luckylion wrote:
           | Isn't the UK using pension funds?
        
             | rwmj wrote:
             | It is (so is the US). But ultimately productive value from
             | workers must be transferred to retired people. How exactly
             | that happens, whether through deferred spending power (ie
             | savings/investments) or through direct payments, it has to
             | happen.
             | 
             | Although I admit that there being other countries in the
             | world does change the calculus a bit; it would be possible
             | (albeit weird and unsustainable) for everyone in France to
             | be retired, so long as say the Philippines was young and
             | working and French retirees owned all the shares in
             | Philippine companies.
        
               | luckylion wrote:
               | The main difference is that in the pension fund model,
               | you (at least in theory) don't need the next generation
               | to pay: you save now so you get money later.
               | 
               | In the more common model, you pay for the previous
               | generation hoping that the next one will pay for you, and
               | you need intergenerational agreement on what's a fair
               | amount. You don't need that with the fund model, as you
               | (usually) agree & know beforehand how much you'll pay and
               | how much you'll get.
               | 
               | I'm fortunate to not be part of it, but I'm pretty sure
               | German employees are looking at France where rents are
               | higher and retirement age is lower and think "hey, you
               | can do that?". I guess we'll see whether you can (though,
               | fair enough, Germany is a special case, the reunification
               | cost a lot of money).
        
               | konschubert wrote:
               | I think you missed the finer point that GP made: At the
               | end of the day, somebody has to change that bedsheet.
               | 
               | Consider this extreme edge case: If everybody is retired
               | and no is is working, inflation goes to infinity and all
               | those savings and stocks become worthless.
        
               | phil21 wrote:
               | > you save now so you get money later.
               | 
               | How do you save labor for later? Current retirees need
               | young folks to do the work they cannot do, and thus those
               | young folks are paying in today.
               | 
               | When those young folks retire they will be relying on
               | even younger folks to do the work for them. If there are
               | not enough younger folks to do that work, the money saved
               | between generations will become relatively worthless.
               | 
               | Thought another way: The same amount of labor needs
               | doing. If the current generation of workers stops paying
               | in (read: working), then the entire system stops. One
               | generation saving more (or being larger) than the next
               | doesn't change much other than that saved wealth chases a
               | decreasing amount of available labor once that generation
               | retires. Quality of living will be predicated on the
               | amount of available labor - not saved capital.
               | 
               | It gets a little more wishy washy when you can plow
               | capital into long-lasting infrastructure, international
               | wage arbitrage, etc. but in the end you simply cannot run
               | retirement systems if you have less labor available while
               | keeping the same quality of life for all parties. Someone
               | is going to lose.
        
               | actually_a_dog wrote:
               | How exactly does the same amount of labor need doing when
               | there will fewer people who need _anything_ in the near
               | future? You seem to be saying more labor per person is
               | necessary to satisfy this "need."
               | 
               | That doesn't seem beneficial to workers as a whole. I
               | thought innovation was supposed to benefit everyone?
               | Where's the hole in this logic?
        
               | phil21 wrote:
               | When the current crop of retirees were in peak earning
               | periods, there were something around 6-8 workers per
               | retiree. Data on France isn't super easy to come by.
               | 
               | By 2030 this is expected to be about 2, which is better
               | than I expected. You would need massive productivity
               | gains inside the span of the past 40 years to make up 4-6
               | workers per retiree in labor.
               | 
               | The fact I have 4-6 less cousins my age to sell my labor
               | to to help take care of grandma doesn't seem to offset
               | that huge amount of labor now needed to be expended on
               | largely unproductive tasks. We went from 4-6 people
               | pitching in to help out grandma each day to just myself.
               | If you look at that in hours vs. dollars, the problem
               | starts to become quite apparent to me. I don't feel I'm
               | 500% more efficient at what I do than my elders.
               | 
               | Perhaps we've innovated so well that we can now support
               | old folks with a fraction of the labor, but I'm
               | skeptical. Fixed costs seem rather fixed, and from where
               | I'm sitting I think a whole lot of that "innovation
               | budget" has been spent already on rising expectations of
               | minimum quality of living.
        
               | marcosdumay wrote:
               | > it would be possible (albeit weird and unsustainable)
               | for everyone in France to be retired, so long as say the
               | Philippines was young and working and French retirees
               | owned all the shares in Philippine companies
               | 
               | That is basically the same situation, but you are
               | replacing local people that see the retired ones with
               | remote people that can refuse to send any money and won't
               | even see old people starving.
               | 
               | A strong military can make the situation more
               | sustainable, in a highly immoral way. But that again
               | isn't new, you can enslave people near you too.
        
               | strken wrote:
               | "From workers to retired people" implies at a casual
               | reading that the worker and the retiree are not the same
               | person, when in many systems the majority of what the
               | worker pays goes directly to their own retirement.
               | 
               | It's debatable whether paying into your own account is a
               | transfer of wealth at all, even if you're not able to
               | withdraw your money until retirement.
        
               | [deleted]
        
           | throw0101c wrote:
           | > _Every single pension system has the working population pay
           | for the retirees._
           | 
           | Nope. At least not completely. Canada switched away from a
           | pure pay-as-you-go (PAYG) system in the 1990s:
           | 
           | > _Move towards a hybrid structure to take advantage of
           | investment earnings on accumulated assets. Instead of a "pay-
           | as-you-go" structure, the CPP is expected to be 20 per cent
           | funded by 2014, such funding ratio to constantly increase
           | thereafter towards 30 per cent by 2075 (that is, the CPP
           | Reserve Fund will equal 30 per cent of the "liabilities" - or
           | accrued pension obligations)._
           | 
           | * https://en.wikipedia.org/wiki/Canada_Pension_Plan#1996_refo
           | r...
           | 
           | Asset returns are used to help fund benefits. A number of
           | pension funds in Canada have moved away from a (pure) PAYG
           | model:
           | 
           | * https://en.wikipedia.org/wiki/Pensions_in_Canada#Canada_Mod
           | e...
        
             | bjourne wrote:
             | On a macroeconomic scale it is still the workers paying for
             | the retirees. Doesn't matter how many millions you have in
             | the bank if there aren't working people you can trade your
             | money for goods and services with.
        
             | akavi wrote:
             | PAYGO vs investment earnings is purely a financial
             | construct.
             | 
             | The central issue is that physical goods and services need
             | to be produced around the time that they're consumed, and
             | at a given point in time, an economy has a fixed capacity
             | to generate these goods and services.
             | 
             | If you have a non-producing population, and a producing
             | population, then the only way for the non-producing
             | population to consume a given quantity of goods and
             | services is for the producing population to not consume
             | those goods and services. Whether you call the reduction in
             | consumption ability of the working population "taxes" or
             | "investments" doesn't change this fundamental fact, except
             | insofar as it alters certain behavioral incentives around
             | deferring consumption and legal frameworks around property
             | rights.
             | 
             | (This isn't 100% of the story, since you can "lay claim" to
             | production of working people overseas via international
             | investment, but is accurate in broad strokes.)
        
               | nimbleplum40 wrote:
               | Since you said capacity is fixed _at a given point in
               | time_, this is technically true but not really useful.
               | 
               | Populating aging happens over time, not all at once.
               | Overall production also changes over time. It's not
               | inherently true that for "non-producing" (not sure
               | exactly how you'd define that) people to consume goods
               | the "producing" people must consume less, at least not
               | relative to past levels of consumption.
        
               | jimbokun wrote:
               | > If you have a non-producing population, and a producing
               | population
               | 
               | Isn't this true of capitalism generally, and not just for
               | retirees and young workers?
               | 
               | The "non-producing population" is commonly called
               | "capital", and the "producing population" is commonly
               | called "labor".
        
           | UncleOxidant wrote:
           | And it wasn't a problem when the working age population was
           | always increasing... but when it no longer is (as is the case
           | in much of Europe) it becomes problematic.
        
             | aaplok wrote:
             | > when it no longer is (as is the case in much of Europe)
             | it becomes problematic.
             | 
             | Not necessarily. What matters here is whether production
             | matches demand. If the proportion of people in the
             | workforce declines, but their productivity increases by the
             | same amount (which isn't far from being the case in Europe)
             | you don't have a problem.
             | 
             | And even that is too simple. As the population ages, demand
             | changes. It increases im certain domains (health) so
             | productivity increase might not suffice.
             | 
             | ...but then of course the productivity of older people
             | declines too, together with their health (higher
             | unemployment, more sick leaves), so there is a lower and
             | lower ROI as you put these people in the workforce. And
             | then making people work longer accelerates the health
             | decline, and so increases the demand. Except those people
             | die younger on average, lowering the demand.
             | 
             | So it's a supply and demand issue, but not quite a supply
             | and demand of workers. It's a complicated economic problem.
             | All of this is talked about in the French debate, which is
             | a lot more subtle than the loud vociferations reported in
             | the news make it out to be.
        
           | nyokodo wrote:
           | > Every single pension system has the working population pay
           | for the retirees.
           | 
           | Which is just a socialized form of the previous social
           | security system which had children or grandchildren look
           | after their parents. Of course, the glaring difference is
           | that social security schemes have motivated many millions,
           | who otherwise might have, to not have children at all or an
           | inadequate number and so contribute very little to nothing
           | towards the future maintenance of the system while still
           | cashing the checks once they retire. Of course this system
           | does help the minority who can't have children for whatever
           | reason but it does look like we've swapped looking after that
           | cohort for a few decades for effectively no social security
           | system for anyone once this ponzi scheme collapses.
        
             | Spooky23 wrote:
             | That's a pretty crazy position. In the US, there's lots of
             | material out there on the conditions that led to the
             | creation of Social Security and subsequent legislation like
             | Medicare and Medicaid. Hopefully you are simply ignorant of
             | that history and not demonstrating a blase tolerance of
             | human suffering.
             | 
             | These systems are very sustainable, and the solution to the
             | funding issues would be best served by indexing the cutoff
             | for contributions to inflation.
             | 
             | As to birth rates, how do you expect people earning less
             | than their parents to absorb the exponentially higher
             | costs? My son was born over a decade ago. Thanks to a
             | moderate, common complication, his birth cost $85k. His
             | childcare at age 3 cost as much as our mortgage.
        
             | nemothekid wrote:
             | > _Of course, the glaring difference is that social
             | security schemes have motivated many millions, who
             | otherwise might have, to not have children at all or an
             | inadequate number_
             | 
             | This implied link between public pensions and demographic
             | collapse paints a picture that social security was destined
             | to fail because people wouldn't have children for the
             | purpose of taking care of them in old age. The millennial
             | generation, the largest American generational cohort, were
             | born almost 50 years after the founding of social security.
             | How does it make sense that public pensions motivated
             | millennials to not have children, but not their parents?
             | 
             | Across all developed countries where you have demographic
             | collapse you have societies where it becomes more and more
             | expensive to raise children. The public pension system
             | requires that the economy grows year after year and that
             | becomes hard when your population shrinks. As to why the
             | population is shrinking you have to look at why people
             | aren't having children. And when you ask that question you
             | get way more "I can't even afford to buy a house" and not
             | "the government is going to take care of me when I'm old".
        
               | 988747 wrote:
               | [dead]
        
           | aetherson wrote:
           | I think a lot of people assume that pension systems ought to
           | or actually do work as savings/investment systems, like
           | private 401(k)s do. So you pay into the system when you're
           | working age, your money is saved, then it is paid out to you
           | later.
        
             | mywittyname wrote:
             | I'm not sure about every pension system, but there are many
             | that invest in government bonds. The problem what that
             | approach is the sustainability of the system depends
             | entirely upon interest rates, which have been at all time
             | lows for the past 15 years. Some private pensions invest in
             | the broader market.
             | 
             | All investment systems suffer from this exact problem:
             | returns aren't guaranteed. Even people with 401ks might
             | experience this same issue if investment returns fall below
             | the conventional wisdom rate of ~7% (or 4% real). But even
             | if that rate holds up over the long-term, there's still to
             | risk of a "lost decade" of no-returns or losses for and
             | extended period, followed by a sudden market pop.
             | 
             | Pensions are hard.
        
               | datavirtue wrote:
               | They were working great until the looting started.
        
             | yamtaddle wrote:
             | Whose labor is giving those investments value? Who's doing
             | the labor that gives those IOUs (dollars) value even if you
             | just stick them in a savings account and don't invest them?
             | It's not retirees.
        
             | Izikiel43 wrote:
             | After seeing the pensioners in my home country living in
             | poverty because of economic crisis destroying their
             | pensions, the government using pension money as if it was
             | its own, and being actively hostile to pensioners by
             | delaying trials to pay the pension money fairly waiting for
             | them to die, I will take a 401(k) over that always, my
             | money is mine and no one else's.
        
               | olddustytrail wrote:
               | I have some bad news for you then: many of the companies
               | that provide 401(k) were on the verge of collapse in
               | 2008. The only reason people didn't lose their pensions
               | entirely was because the government bailed them out...
               | 
               | You can _always_ lose your money. Best to accept that and
               | not worry too much.
        
               | datavirtue wrote:
               | "You can always lose your money."
               | 
               | It went somewhere.
        
               | jobs_throwaway wrote:
               | How does that work? The 401(k) providers are lending out
               | the securities that their customers own?
        
               | lotsofpulp wrote:
               | No, 401k admins do not own the securities, the employees
               | do. The comment is incorrect in implying the government
               | bailed out the administrators, but the government did
               | backstop the price the securities (the stock market)
               | itself.
               | 
               | Hence why I think an SP500 investment is risk free on a
               | >3 year timeline.
        
               | [deleted]
        
               | pkaye wrote:
               | The 401(k) money is held separately from the company
               | funds.
        
               | Izikiel43 wrote:
               | > many of the companies that provide 401(k) were on the
               | verge of collapse in 2008.
               | 
               | The stock market went to shit, not the providers. The
               | 401k appeal is that it's an account you *own* and the
               | government can't touch for money, it would be the same as
               | expropriating a bank account, which to be fair, the
               | Argentinian goverment kind of did in 2001, hence why
               | since then, people there save money in usd cash or in a
               | foreign account, not in the local financial system. If
               | the US government has to expropriate or do weird stuff in
               | general with 401k accounts, we are in a situation where
               | shit hit the fan long ago.
        
               | yazantapuz wrote:
               | Argentinian? The government theft of the private funds
               | was outrageous. Although the AFJPs were far from being a
               | 401(k) system.
        
               | Izikiel43 wrote:
               | > Argentinian
               | 
               | Takes one to know one
        
               | eniotna wrote:
               | Money is never truly yours if you are not the issuer.
               | That's why we need more "hard" money (gold, bitcoin).
        
             | globalreset wrote:
             | All financial savings are an illusion. They are just claims
             | on productivity of other people in the future.
             | 
             | Boomer generation globally accumulated a lot of claims and
             | considered them their "wealth" but forgot to produce enough
             | people that are going to be willing to put an effort to
             | satisfy these claims.
             | 
             | Now is the time when boomers will want to use their savings
             | and discover their error.
        
           | ur-whale wrote:
           | > Every single pension system has the working population pay
           | for the retirees. Where do you think the money comes from?
           | 
           | Disagree.
           | 
           | Counter-examples:
           | 
           | 401k in the US
           | 
           | Second pillar in Switzerland.
           | 
           | The money comes from the people saving and investing their
           | own money for their old age.
           | 
           | Shocker, I know.
        
             | cdavid wrote:
             | it is a common misconception that how the retirement is
             | funded makes a huge difference in how much you need to
             | save. In most situations, it does not matter nearly as much
             | as people believe. Dependency ratio will determine in large
             | part how much people will need to save to get a given level
             | of retirement income.
             | 
             | For example, your 401k ability to pay for your retirement
             | will depend on productivity gains , growth, saving,
             | investments happen in the future. Those will look very
             | different if you have 4 working age people for one non
             | working person, vs 2 working age people for one non working
             | one. In the extreme case, if nobody is working anymore when
             | you retire, your 401k will likely worth almost nothing.
             | 
             | The problem in France is not _how_ it s funded, but the
             | fact that retirement incomes are way above the funding
             | level. France, with Italy, are the only two OECD countries
             | where retirees have a higher income that working people,
             | which is insane. However, since retirees vote much more
             | than other demographics, their too large income will not be
             | touched.
        
             | lazyasciiart wrote:
             | Those are not pensions. The 401k system is _explicitly_ an
             | alternative to the older pension systems. Words mean
             | things.
        
             | justeleblanc wrote:
             | You utterly missed my point. You say people invest money.
             | Aren't they expecting a return? Where does that return come
             | from? If there is no return on investment, are we really
             | talking about a pension, or just saving up for late age
             | unemployment?
        
           | lotsofpulp wrote:
           | The money is just an entry in the accounting ledger
           | allocating society's labor. The pension fund can increase to
           | trillions and quadrillions, and it will not make a difference
           | if there is not enough people willing to change bedpans for
           | as low of a price as was originally expected.
        
             | hartator wrote:
             | Yes, they can play with inflation and debt, but at the end
             | of the day, it's just a question of people resource and
             | time allocation. Money is just a proxy.
        
             | toomuchtodo wrote:
             | There will be a market clearing price for that work, and
             | these accounting mechanizations are simply sussing out what
             | that price is (in comparison to other broad societal work
             | to be done).
             | 
             | If caring for the elderly is made more valuable than say,
             | slinging JavaScript, that's where some of the labor will
             | go.
        
           | coryrc wrote:
           | China's building massive amounts of underused housing. US
           | boomers could have built long-lived buildings and
           | infrastructure (high-speed trains) which provide usefulness
           | to people later in exchange for them paying some money for
           | retirees.
           | 
           | Instead, they built ever-decaying roads and rotting ticky-
           | tacky boxes and left nothing durable for future generations.
           | Hell, they even ripped out trains in cities across the
           | country. (Seattle interurban among so many examples).
        
         | yodsanklai wrote:
         | > Every president, be they socialist or liberal, have attempted
         | to tackle the issue, only to get country-paralyzing backlash.
         | People will nitpick the details of whatever current plan
         | proposes, but the fundamental problem remains.
         | 
         | The Touraine Law in 2014 raised the number of worked years from
         | 36 to 43, which is a big deal. So it's not like nothing
         | happened. Also there are good reasons to dispute the current
         | proposal, it's not just nitpicking details, it will impact very
         | negatively some people and perhaps there are other ways to fix
         | the system.
        
       | skee8383 wrote:
       | You can beat millinials and zoomers into the ground with low
       | wages and no one bats an eye, but if you mess with the boomers
       | the retirement the entire country is shut down.
        
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