There has been extensive talk about how social security systems around the globe are having issues due to declining birth rates as well as a decline in the quality of employment for younger generations.
But another less often talked about issue is that almost nobody is able to make savings anymore.
Think about it. We all know at least some boomers. Most of them bought a car in their teens, a house in their thirties, went on frequent vacations and still even with all that were saving money beyond just for retirement savings.
Since that time, wage growth had stagnated, house prices have skyrocketed, and the purchasing power of the average salary has been going down.
So aside of the social security bubble potentially bursting in the future, there's also a bigger underlying issue.
Purchasing power has only been getting worse from generation to generation, and thus being able to make any savings is already a distant dream for most. Younger people just keep working more for less, to s point now where mostworking people can't put even a single dollar aside.
Could there be a solution for these issues? Economists have long argued about the strengths and failures of our economic system, but alas it appears as though
"trickle down economics" has failed humanity.
So, do you agree that radical changes are needed?
It was inevitable really, the "West" had things very good and easy for a long time, but other countries in the world - huge ones like China and India are fighting their way up. All these materialistic things in the world come from finite sources and when there are more consumers around it means that purchasing power in these big importer countries will go down. America used to produce a lot more of the stuff that they used, then they decided to export it to places like China where it became cheaper to make, now the Chinese have a taste of the good life and don't have plans to turn back. Countries like America and the ones in Europe have had good times for a long time, so they will need to adjust to this new reality.