Should the young, who fear that the social security system will fail them when they need it, and government officials concerned, take full account of the future system of production that is expected to see radical advance in automation?

The question answers itself -- yes. If we all focus on production of the necessities for future comfort, we can be sure the number of employees required to create and manage automated systems will present and all will be well paid. Accordingly:

1. There will be no need to raise the retirement age.

2. Economic output will be so great that both workers and pensioners will be able to receive more than a comfortable share of what is produced. Production will not come only from immediate hours of work: automation and robots will be doing a huge share of the tasks and this will reflect the past work of people who go on a pension.

3. If we end the payroll tax -- which we should -- employees will not be taxed for SS pensions. Pensions can better be found within the general monetary resources of government.

4. These resources are limited primarily by any severe inflationary effect of spending. Spending needs always be paced to economic output (supply).

5. If spending is too low, motivation to produce is lost. If it is too high, money can become worthless. If spending is paced to output, excess private money can be withheld from circulation -- that is, it can be saved in an account that cannot be lent to borrowers.

6. Thus, the private account the young should demand should hold their own savings in cash -- with no risk and no taxes to ruin their sleep.

-- john gelles (john@1944.org), July 29, 2001