U.S has increased the elimination of pensions, this has caused the U.S. to move closer to a capitalist economy where companies no longer rely on pensions to attract workers and also don’t have a safety net where companies and workers are taxed to raise money for their pensions, as is the case in most European countries. That change has led to increased inequality, because low- and middle-class workers cannot afford pensions, whereas the wealthy can.
http://www.usatoday.com/story/money/2016/04/23/pensions-economy-workers/83292892/
First of all, it is not fair to say elder people are less productive. And for workers to reach their peak performance at age 43, the best way is to try to gain some sort of human capital around 20 years old. It is not necessarily the elder people taking jobs away from younger workers who could be more productive.
ReplyDeleteAlso, pension is an open-ended benefit system in nature. It is interesting that the US government forced GM to go bankruptcy to escape their pension liabilities when GM was bailed out.
First of all, it is not fair to say elder people are less productive. And for workers to reach their peak performance at age 43, the best way is to try to gain some sort of human capital around 20 years old. It is not necessarily the elder people taking jobs away from younger workers who could be more productive.
ReplyDeleteAlso, pension is an open-ended benefit system in nature. It is interesting that the US government forced GM to go bankruptcy to escape their pension liabilities when GM was bailed out.