[allendoerfer]

Here in Germany they also ignored the demographics, so our social insurance systems (retirement but also health) are heading towards a catastrophe, because there is no capital backing them. They are fundamentally relying on the next generation being bigger or at least equal. This has turned them essentially into Ponzi schemes. The taxpayer has to jump in, making the state less and less able to do anything at all. Of course they now collectively avoid responsibility and slowly milk the young - their own children - dry.

It is truly the most egoistic generation ever.

[boelboel]

Are they the most egoistic generation ever? The ones who decided to go on this path weren't the boomers but the generation before (as with some other things boomers are blamed for). A capital backed social insurance system is a "ponzi" scheme in different ways from a PAYG system it's really not some holy grail. The problem is just demographics

[heraldgeezer]

You are describing every pension system in the world.

[tossandthrow]

Well, he explains all deferred spend.

Deferred spending is quite unnatural. That I can work 1 hour today and buy youghurt in 2 years is an artifact of our system.

But this also relies on someone making that youghurt in 2 years from now.

It is that key dogma that will likely be under pressure for future pensioners.

[allendoerfer]

ChatGPT thinks, that in the US social security makes up about 30-40% of the retirement income of a typical American, while the German system makes up about 80-85% of a retired German. Home ownership rate in Germany is also way lower.

Germany is an outlier in that there is no capital backing for that generation whatsover. The problem has been known for 30 years, they just chose to ignore it.

[mech422]

It's going to be interesting when the Millenials retire - IIRC, that generation was almost as large as the boomers. Gen-Z/Gen-Alpha that are going to be supporting them are a LOT smaller.