This is entirely a problem of putting all of eggs in one basket. Or rather, only having one basket in which you’re allowed to put your eggs. The German pension system is already insolvent, and I suspect it’s not the only one. European welfare states are great n’all, but it would seem they were set up when the going was good and populations were growing. Now with stagnation, they don’t look much like staying solvent and populations don’t have anywhere else to turn
The German pension system is completely insane. There is no fund backing it, and disbursements already exceed contributions to the tune of 127B EUR per year (which is subsidized from the general budget) and the gap is only growing.
Probably explains a good chunk of Germany's and the EUs anemic growth. Simply put, that's 127B EUR that can't be spent investing in the future and growing the economy.
