Retirement and Employment

[Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>]

PKT members,


If saving creates unemployment, then saving for retirement
is problematic for full employment. Before anyone jumps down my throat
please let me clarify.

It is important distinguish between two types of retirement:
Involuntary retirement and voluntary retirement.

An expectation of involuntary retirement leads to saving for retirement
and a decrease in employment.

An expectation of voluntary retirement leads to investment in retirement,
and an increase in employment.

Therefore if full employment is desired the retirements laws which are
responsible for generating the negative expectation of involuntary
employment should be eliminated.


A possible corollary:
A rising life expectancy together with strict retirement laws
may have caused the unemployment crisis of the 1930's.

Note:
The average life expectancy in most developed countries is now well
above 65 yrs. (In Canada it is about 78 yrs). I think at the beginning
of the 20th century it was between 45 and 50.

Comments?

Harry