36 karma · joined July 18, 2008
Well, it looks completely different if we take out the money from this situation.
Consider this: we have big unemployment, a lot of part-time workers, a lot of people not working because of disabilities, there are also millions of college and university students who are obviously not working full time. But the economy keeps going, it has no shortage of workforce, number of workplaces is limited and less than total number of people.
Then you propose to increase retirement age.
The number of workers will increase, but the number of workplaces is the same. Wages are decreasing, tax revenue is decreasing and we again have no money to pay welfare, pensions etc. So we don't need more workforce.
Redundant workers rely on disability pensions, unemployment payments, food stamps etc. All these welfare programs have obvious deficiencies, but we need to feed the people anyway. If these people were working it would be much better. But there is simple way to increase number of working people without extra resources.
We just need to limit working hours. And it is possible, because it was possible to introduce 40 hour work week. Now cut it to 35, and you get 12% increase of number of working people and unemployment completely disappears.
The reference frame http://motls.blogspot.com/ (not only physics, but also climate change)
Collective blog on mathematics and mathematical physics: n-Category cafe http://golem.ph.utexas.edu/category/