Hey Veeky Forums

Hey Veeky Forums,
I have a question about economics:
There are warnings by economists about a pensions crisis that is about to come in many developed nations, as people get older and less people are in the work force. On the other hand unemployment is on the rise due to higher productivity and automatisation. Even jobs with high qualification requirements are already affected. How does that fit together? Can someone with an understanding of economics explain that? Much appreciated.
(Firs time I'm posting on this board, so please forgive, if that's a dumb question.)

(((economists)))

You're talking about a bunch of people that might as well be reading palms or using tarot cards. They only exist to justify the policy decisions of the people in power and don't give a shit about actual science.

I'm confused about what you're actually asking.

The pension crisis is more about stock market returns. Pension funds just can't get the sort of returns they used to be able to get, so they're having to dig into the principal to pay people who are retiring (there are a lot of baby boomers due to retire within the next decade). If this continues (which seems likely), funds will gradually dry up to the point where people who have been paying into these funds for their whole careers will discover, upon retirement, that there's actually no money left to pay out their pensions.
Until/unless we see pre-2008 levels of growth again, I can't see any options other than massive bailouts of pension funds.

In regards to your confusion about unemployment rate, you should stop thinking as if there are a set number of jobs. X number of people retiring every year does not necessarily mean there are X job openings for younger people.

>How does that fit together?
Pensions come from income taxes.
Geriatrics and robots don't pay those.
Start saving up. No, not money. Buy shit that doesn't lose value over time.

Sure, actuaries sit down twiddling their thumbs and forgetting all the math they learned in college.

Yeah, but that's not the form of economics that's driving policy decisions, is it?

posting krugman is like post black science man
get outta here pseud

Economistfag here, I kind of not understand your question totally but I'll try to help.

The pension problem is not that important anymore because many nations not named Japan have taken measures to reduce the State contribution to them in the year or changing the "Old" pension style. Still, it can create some troubles depending the population growth rates, but is not the end of the world anymore.

Yes, unemployment at the long term could be higher due to what you say, or at least that's the fear since the XVII Century, but in the other hand, new markets are created thanks to the technology where people can go. It is a problem in poor countries where people have no education or skills and can't change into other areas easily.

How does it fit together? Mmm, welp, at difference of what a lot can say, Economics isn't a hard science, it can't really make predictions accurately. But my shot is that probably somewhere along this century, there will be a reduction on the time of work, with more shifts and more employees, but with stable wages, so unemployment is taken. Almost 90% of businesses and jobs will be in the services as the industry and agriculture will become too crowded and automatized. That or we go full socialist and make meme state businesses to take the unemployment. One way or another, people probably won't take high unemployment rates with inequality for too long.

>implying Krugman isn't the guy all of the politicians go to in order to justify why they should be buttfucking the average citizen

That's Friedman or Piketty bro, depending the state religion

This is a board for science and math so unless you have something for physics, chemistry or math you should take your leave and never return.

Economics is a science.

I refer you back to this image

I could refer you to a gazillion pop-scientists but what's the point? This thread is not going anywhere and there's nothing you can do about it fucboi

>Krugman
>not the eminent economist of the 21st century
Pick one and only one.

>nothing this fucboi can do about it

>7. Replying to a thread stating that you've reported or "saged" it, or another post, is also not allowed.

That image is so fucking stupid.
>by 2005 or so it will become clear that the Internet's impact on the economy has been no greater that the fax machine's.
fucking idiot
meanwhile, eshops are literally murdering brick and mortar, Amazon and Alibaba are some of the largest commerce companies in the fucking world, automated stock exchanges are popping up left and right, people crowdfund shit, services like Uber are completely reshaping society, Google owns fucking everything and your mom. And we're just getting started.
How is there a shred of fucking truth in what he said there?

>old man doesn't get new technologies. more news at 12

dont forget the unemploymenr numbers are skewed positively as those who cannot find work and leave the labor market dont get classified as unemployed. the participation rate has been grinding lower for how long.

pension funds are fucked because long dated debt yields fuck all(~3%) on 30yr US. this pushes folks out the risk curve as they are trying to make something. tho you cant add EV. so getting something with 5% increases variance but not EV.