The International Monetary Fund is concerned about the Europeans who insist on living instead of set sail and go meet their creator – thus relief the pensions funds and the public health care system. The population in Europe is aging and this is going to create havoc in economy and a sharp productivity slowdown.
According to new research from four staff members at the International Monetary Fund:
European productivity is already poor by historical standards, particularly in states like Italy and Greece, where rock-bottom productivity has previously caused significant economic issues. In fact in Italy, weak productivity growth is one of the biggest factors in the country’s stagnant economy.
The IMF argues that within the next two decades, the number of people in the European workforce aged between 55-64 will increase by one third, growing from 15% to 20%. This in turn could cause big issues.
Why? Here are the thoughts of the IMF staff:
“There are several different theories regarding age-related effects on productivity. On the one hand, accumulated years of work experience could make older workers more productive. On the other hand, frailer health and obsolete skills could reduce their productivity, at least beyond a certain threshold. While it is difficult to generalize across occupations, the consensus in the literature is that productivity increases with age at first, peaking sometime in the 40s or 50s. Then it diminishes.”
The aging workforce could cause big troubles because:
“First, aging will take a considerable toll on productivity growth over the medium- to long-term. As shown in Chart 2, average total factor productivity growth in the euro area is forecast to be around 0.8 percent per year. This could be higher by a quarter—that is to say, total factor productivity could increase to about one percent per year—if we shut down the effect of workforce aging. This result stands in stark contrast to the United States, where the workforce is not projected to age at all (in fact, it is projected to become slightly younger), and hence the impact on total factor productivity is negligible.”
The IMF thinks that Europe’s weak nations already face the biggest burden.
“Second, the burden of workforce aging will fall unequally across euro area member states. Worryingly, some of the largest adverse effects on productivity will fall on countries that can least afford it, such as Greece, Spain, Portugal, and Italy. These countries already have elevated debt levels and meager fiscal space, and need rapid productivity growth to build competitiveness and bring down unemployment.”
all excerpts from IMF’s aging population report via Business Insider
My take on the IMF’s concerns: As the aging workforce causes troubles in EU’s economy, then those over 50 should go into early retirement.
And die early. At 65 or 70 maximum.
They should not live up to 80, 85 even 90 years old and swallow the IMF’s “sponsored” pensions or burden the health care system with additional cost due to growing old health problems.
I am sure, the IMF staff does not bother to mention the mass migration of young labor force due to the economic conditions the same IMF has created.
PS Beware of bored staff producing dangerous reports on their PCs!
I think somone is nuts – and it’s not me.
Maybe we could hire the unemployed 18-25 years old to shoot the people over 65? That would definitely “kill” two birds with one stone by providing employment for the younger people and getting rid of the under-producing “deadwood.” I’m surprised one of the luminaries at the IMF hasn’t come up with this solution yet.
IMF is probably kind of not daring to publicly propose it
Maybe they’re waiting for Germany to take the lead…
All of this is actually no more than a coverup of the incompetence and stupidity of international organisations that advise governments on economics. It has been absolutely clear for DECADES that pension systems run as Pay-as-you-go (that is, pensions are paid out of current insurance receipts)could not cope with demographic changes that were evident from the 1970s onward. Far from changing the system, all that these idiots have recommended is that pension ages should be increased, contribution levels increased for the young, and pension payments reduced while telling everyone they should have private insurance anyway.
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Decades down the road, and after the UN told the world in 2000 that the only viable solution to declining working age populations is immigration, we have a crisis in Europe not because of immigration, but…. why? Because the economic policies followed by the EU (and especially those of the eurozone) are destroying economies and making the pension systems even worse than they already were. Does Schaueble accept any responsibility for his malakies? Like fuck. Does the IMF accept any? Does the OECD accept any. All of these people are conformist half-wits with PhDs — hiding their stupidity with formal education and diplomas. The fact is that our economies need to be reflated, adjusted for managing the terrible inequities of income distribution, and people and corporations taxes according to their capacity to pay — not according to their political influence and corrupt lobbying practices. And of course, pensions need to be adjusted to be paid according to need, and not according to legal property rights. This nonsense has to stop, but it will not. Neither politicians nor their ass-licking cronies in the IMF and OECD will do anything: their primary concern is their own salary and pension. They couldn’t give a fuck about the world or anyone else.
It’s true though, Greece and Italy have a very birth rate. Come on ppl, make more babies!
No wories the national health scare they have had no meds to treat cancer or other serious diseases so they’re not going to live too long.