We can afford a contraction.
We can afford a contraction.
You need a certain tax base to keep services funded. Then at some point on the curve, you start running out of service workers for the care industry.
I think automation will help to a degree but healthcare services is right at that sweet spot of both physically intricate and nonroutine that is so hard to automate.
It's not that bleak, only until humans are extinct.
I don't know who are "we" and if they can afford it. I suspect most don't know either and think they "afford" part is not their part or imagine it's having one less latte/month in exchange for less traffic.
Humanity can afford it, you might not
Humanity can afford it, you might not. But policy should probably be set to benefit humanity.
I don't think it makes much of a difference in practice for this scenario if retirement is funded by savings/investments of the elderly or through taxes and other transfers from the working population. As much of the population is retired the value of the investments will go down as now now people are selling than buying new investment. It would become a indirect transfer.