Reply To: Price Controls to Fight Inflation

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#2101337
akuperma
Participant

ujm (RE; retirement age)

If your goal is to reduce inflation, and raising the retirement age would reduce the death rate, it is a classic double-edged sword. A higher retirement age would increase the work force, and encourage lower wages for everyone. However it the is a causal relationship between retirement and death, higher retirement age would both make old people better off economically (which would increase consumer spending) while at the same time living longer (and consuming more). Higher consumption increases demand which is inflationary.