Friday, February 25, 2011

FLG's Quick Thought

Matt Yglesias writes:
Now obviously an idea like raising the retirement age to 70 isn’t as wrong as mandatory euthanasia at the age of 70. But by the same token, it doesn’t “work” as well at boosting per capita GDP or cutting down on American red ink.

But FLG was just thinking wouldn't raising the retirement age boost per capita GDP?

If you raise the retirement age, then more people will be working. More people working raises GDP. Sure, it's an increase in inputs rather than an efficiency gain. But if more people working raises GDP and the number of people is constant, then raising the retirement age necessarily raises GDP per capita.

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