Without changes in policy, a rising share of people who are over age 65 will exert a substantial downward influence on per capita real GDP in western European countries.
In European countries where the share of those over 65 is rising, there are net social benefits to adjusting retirement ages for state-financed (including pay-as-you-go) pension systems upwards, so that revised retirement ages better reflect longer life expectancies.
This week's European Economic Experts Panel statements:
A) All else equal, there are substantial advantages to having much of Europe’s human capital and infrastructure for international financial activity clustered in a single city, as they are at present in London.
B) All else equal, Britain’s rules on hiring, firing and working hours are significantly more conducive to financial activity than those in other large European countries.
Providing state and local subsidies to build stadiums for professional sports teams is likely to cost the relevant taxpayers more than any local economic benefits that are generated.
This week’s IGM Economic Experts Panel statements:
A) US share prices have risen since Donald Trump’s election victory at least partly because the policies he seems poised to implement are likely to increase US after-tax corporate profits.
B) US share prices have risen since Donald Trump’s election victory at least partly because the policies he seems poised to implement are likely to increase US real GDP growth.
