Tuesday, March 2, 2010

Retirement: Too Few Producers

Greg Mankiw posts on his blog the striking graph above, from The Economist.

It reminds me of the pre-Thatcher era in Great Britain, where levels of living were stagnating as a result of too few Britons actually working in the productive sector. France leads the pack, with other Europeans following closely. Beware of the welfare gifts effect on labor supply and thus on overall growth …

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