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The Federalist Diaries

A Not-So-Divine Comedy, Part 8

No one can earn a million dollars honestly.
William Jennings Bryan, 1860 – 1925,
an American lawyer, statesman, and politician, three times the Democratic Party nominee for President of the United States.

The decadent international but individualistic capitalism in the hands of which we found ourselves after the war is not a success. It is not intelligent. It is not beautiful. It is not just. It is not virtuous. And it doesn't deliver the goods.
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Capitalism is the astounding belief that the most wickedest [sic] of men will do the most wickedest of things for the greatest good of everyone.
John Maynard Keynes, 1883 – 1946,
a British economist whose ideas, called Keynesian economics, had a major impact on modern economic and political theory, as well as on many governments’ fiscal policies.  

So far, we have noted many deficiencies in the capitalism which we practice.  The purpose behind such a look is to encourage thought and action about how to make capitalism work better.  So we look at more deficiencies.  

Capitalism wants to keep growing, to keep generating wealth, because more and more people are living long and spending much time in retirement.  In other words, retirees do not generate wealth, so somebody else has to do so that there be money to care for them.  There is another reason for capitalism to keep growing:  many of those among us who are driven to be businessmen and businesswomen want to keep enlarging their businesses.  Also, consider:  if we built items which were durable, there would be less manufacturing work, so we need to build items which are throw-away or whose life is shorter than ours, so that we keep people employed as we go shopping for replacements.  

Unfortunately, this comes at a time when we are depleting non-renewable resources, driving flora and fauna to extinction, and bringing down the quality of life for humankind.  And the problem exists not just in the industrialized world.  People in developing countries want to catch up with us as quickly as possible, and that means doing so in the cheapest way possible, which means that the depletion of non-renewable resources will increase.  

It is interesting to note the following and consider how the ideas might apply to the United States .  

Japan ’s Aging Population Problem - Alternative Solution

December 14, 2007, by Nick Ramsay  

Japan is facing a crisis. The population is aging and by 2050, one in three people will be past retirement age. Meanwhile, the birth rate is currently at 1.25 babies per woman, much lower than the 2.1 needed to keep the population stable.  

The result is a workforce too small to support the huge number of retirees. Who will do all the work? Will there be enough tax money to pay for pensions? What about the cost of health care?  

How to solve Japan ’s aging population problem  

Plan A would be to increase the number of workers, and you could do that by:  

1. Having more babies  

Some companies are offering financial incentives to their employees to have more children. …  

2. Upping the age of retirement  

This might have already been put into action, and I’m sure everyone is thrilled about it (sarcasm). …  

3. Increasing the number of foreign workers  

Easing immigration laws to allow hundreds of thousands of foreigners to live, work and apparently terrorize the natives is not likely to happen. I think most Japanese would rather forfeit their pensions or have robots do the work instead.  

An alternative solution - decrease the number of elderly people! 

...According to my [Japanese] students, a hundred years ago, elderly parents would ask their children to take them into the mountains and leave them there. While this is shocking to hear nowadays, it was considered honorable in the past. We can’t expect and wouldn’t wish to hear such a request from our current generation of pensioners, although putting them in a nursing home might be considered the modern equivalent! ...  

Plan B: If you wanted to secretly reduce the lifespan of millions of people in a few short years, the best way to do it would be to hit them in the wallet. If people don’t have enough money, they can’t take care of themselves. Necessities such as medicine, food, accommodation, heating, transportation, etc. could all be subject to price increases. ...  

To end on a lighter note, one of my students suggested that inheritance tax would cover everybody’s pension because there would be so much of it! Let’s hope he’s right, because that’s much easier to stomach than my alternative solution!

www.longcountdown.com/2007/12/14/japans-aging-population-problem-alternative-solution/

February 14, 2008

 

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