Spain Versus The USA: A Tale Of Two Entitlement States (Spain RISING Labor Participation!)

Confounded Interest ^ | 10/17/2013 | Anthony B. Sanders

[whitedog57]

AN UNSUSTAINABLE SYSTEM The chart will shake future pensioners If you trust your retirement to politicians, poor end up feeling cheated.

JUAN RAMÓN RALLO 16/10/2013

This is a chart that should make us all reflect on pensions. Displays the expected development of the working population and the number of pensioners.

Although it is a terrifying figure, is based on two assumptions fed optimistic: the first is that in Spain work 70% of the population old enough, rather than just get in full bubble, the second is that the number of pension pay matches that of people over 67 years, which today either case, as the Social Security system also covers permanent disability pensions, orphans and for family members (now the Social Security pension paid 9.1 million , and the number of people over 65 years is just over eight million).

Spain Pensions

That IS frightening! But the USA is no slouch on the worker to pensioner ratio!

Let’s start with the number of full-time workers. Workers that usually work full-time is at 116,208 thousand.

usuallywork

The number of people on Social Security is now 57,554 thousand.

ssnumb

That is a ratio of full-time workers to pensioners (or Social Security recipients) of 2-1.

Also frightening!

Here is Spain’s real disposable income (dashed line) and the US real median household income. Once again, frightening!

spainusrealinc

Now let’s compare Spain’s labor force participation rate (pink dashed line) with the USA.

lfpspainvus

Now, THAT is not good. Spain’s labor force participation rate is actually rising while the US labor force participation rate is falling rapidly.

If we compare Spanish house prices (purple dashed line) versus US house prices (Loan Performance HPI), we see another startling difference. Spain’s housing market is still crashing while the US is rebounding.

spainloanlphp

So, the USA shares some similarities with Spain. Except Spain actually has RISING labor force participation.

[whitedog57]

This IS frightening!

[1raider1]

What this country is good five cent formatting.

[PLMerite]

“Although it is a terrifying figure, is based on two assumptions fed optimistic: the first is that in Spain work 70% of the population old enough, rather than just get in full bubble, the second is that the number of pension pay matches that of people over 67 years, which today either case, as the Social Security system also covers permanent disability pensions, orphans and for family members (now the Social Security pension paid 9.1 million , and the number of people over 65 years is just over eight million).”

Is this a bad machine translation or did it start out in Klingon?