Carleton University economist Nick Rowe has initiated a very interesting discussion on what he calls “the retirement revolution”. Clicking on the link will take you to some ‘worthwhile reading’ at WCI.
The first big macro shock was the invention of agriculture. Productivity rose, then fell again for Malthusian reasons. The second big macro shock was the agricultural/industrial revolution. Productivity started growing so quickly it outran those Malthusian reasons.I think the third big macro shock will be the retirement revolution. Poor people, on the Malthusian margin, retire when they die (or die when they retire). Rich people retire before they die. The world population is ageing. But age per se has no macroeconomic implications. Retirement does have macroeconomic implications.