Ask Prof Wolff: Lessons from France's Pension Struggle

A Patron of Democracy at Work asks: "In view of the French retirement proposals and the argument that fewer active workers are supporting more retired workers, can you address how changing demographics will affect world economies? I don't see that declining birth rates will change. It seems to make the current form of capitalism even more sustainable."

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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[jimshelley]

The French know how to stand up for themselves, unlike the compliant Brits and US citizens.

[jeannined]

I have noticed an underlying resentment of the young towards the old because of this very issue. I was an advisor at a major university and the young are convinced that there will be no social security when they retire. This puts them into direct conflict with the elderly, whom they see as clueless and self-serving. The young are paying for our retirement while they (the young) are struggling with massive debt and exorbitant housing costs. I make it a point to befriend the young and let them know that I do, indeed, understand where they are coming from. I'm shocked that some of the people who are my age (71) blame the young for their predicament! As if the opportunities that existed in the 50's and 60's are the same today and it's some kind of defect in the young that's too blame. No wonder our young people are in despair. Thank you for addressing an issue that I have noticed for at least the last 10 years. My personal ministry is to young people, who so desparately need our support and encouragement.

[johnnyjet.]

at a strike in France a few years ago, some workers left the picket line and bricked up the door to the CEOs office! to leave the CEO had to climb down the outside of the building!

[kathygustafson]

Thanks for the explanation, Dr. Wolff.

[revolt]

Thanks for explaining our SSI system and how it works .

[MrLouladakis]

the truth hurts!. in less than 10 min!. thank you for keeping us stable!.

[jaysphilosophy]

Whats changed as well is the fact that many people in high office or in positions of power have never worked blue collar jobs and therefore have little in common with the people on the lower socioeconomic scale. Ask yourself this. How many electricians or car mechanics, or train conductors, hold seats to political office or are making policy decisions? Very few. This adds to the disconnect.

[michaelhanson]

If my parents could retire at 62, why do I have to wait until 67. Why do my children have to wait until 72? There is no 30 and out anymore for anyone old enough to remember those days. People routinely retired in their 50's 30 years ago...now that's considered young...

[michaelandrews]

Wolff is the only economist I have seen who does not leave the impression they are lying to me and themselves.

[emiebex]

The Lesson from France Don't Screw with people's Retirement, & Force The Ultra Wealthy to pay more Taxes.

[kathleenfox]

As always, excellent information. You make it so anyone can understand. You’re a great teacher.

[oxmzdsg]

In China the retirement age is 55 for government employees.

[davidmargetts]

What I am reminded of most from this video is the concept of shifting the Tax burden from income tax to sales tax, what is known to us in Britain as VAT. I remember this when The Tories got in under Margaret Thatcher, because that happened, but we are told it was the EEC ( as it was known then) that made our government do it.

I wonder if it is not just fewer people of working age as suggested, because I don't imagine there are fewer working people. There could be more people of pensionable age because of the baby boomer generation, the population explosion of which may never have happened since, but surely to compensate we have had immigration. Rather, I wonder if it is to do with a low wage economy, so that tax receipts are not what they were to pay the state pension. I honestly would not know, I just wonder about things, and need answers to my ponderings.

But now I'm off to watch Yanis Varoufakis on China, which came up in my feed after watching this. But because I don't have a PHD in economics, and little understanding of anything, most of what he says will go over my head, but I'll try.

[drakekoefoed]

the establishment would love to have workers mad at each other for any reason. divide and conquer.

[soularddave]

As $$ become worth less we should just raise the cap on income subject to FICA withholdings

[milesobrien]

The pension issue is only one of the MANY reasons Europeans are demonstrating against their government overlords. It's not just France. Germany, the Netherlands, Britain, Spain, and Italy are all having protests of civil unrest.

[cliffordmaxwell]

Tax, tax, tax the rich! We know what we need and want to do to fix inequality..

[nancylarson]

With such low wages for workers, why stress yourself by having children?

[alphaomega]

This ridiculous economic system that require people to show up at an office 🏬 when they are geriatrics. 😶

[all]

Ss started with a budget of its own. Why did it change to what it is now? Some say its funds were used for corporate wars, which were supposed to have been funded also by printed paper, which is now plagging as inflation.
If so, is there something rotten in Denmark?