Link: EconLog, Siegel for the Long Run, Arnold Kling: Library of Economics and Liberty.
In 50 years the United States will be more aged than all of Florida is today, but we will be, existing in a younger world. So, what I see is exactly the same pattern. We will be selling assets into the world market. They will be buying, they will be absorbing, they will be saving, and they will be producing the goods that we will be importing to satisfy our retirement needs. And, I think that is the only way that we could have an ever-increasing retirement period with the shrinkage of workers and the extension of life expectancy.
I had written this on implications of ageing in developed world on globalization:
Declining and ageing population in the developed world contrasts sharply with increasing and younger population in the developing world. There is a great synergy here. Developing world needs capital to fund education and developed world needs to save for the imminent retirement of their "boomers".
The twin objectives can be easily achieved if developing world allows private financing of education in return for share of their future earnings. Milton Friedman in the Capitalism and Freedom has also suggested that students should "sell" shares in their future earnings in return for finance for their education.
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