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“And this is a bad thing? Because?”

Suppose each worker was paid $50,000. Probably, the employer of that worker paid an additional $25,000 to the state and federal government for the privilege of having that worker. Theoretically, that extra money is paying for infrastructure supplied by the various governments. But it also pays into government retirement funds at all levels. All of that money speeds around the economy when the worker buys lunch or gas or lives in an apartment someplace far from home and commutes. All of that money stops. Each dollar he had spent moved around the economy creating five to ten “extra” dollars.

Now, back off to orbit and look at, say a million workers representing $50,000 plus $25,000 or $75,000 to the economy. One million times $75,000 is 75 billion dollars.

Now for the biggie, let’s say each worker creates twice his cost in value. Then the total is 150 billion dollars. That times five to ten is the impact to the economy.

The working population is the biggest, perhaps only driver of national Gross Domestic Product. That’s why the Chinese one child policy that has led to the collapse of their birthrate plunges them into a catastrophe that can’t be recovered from. Same with Russia and most of the west. Without people working the country they live in falls into economic decline.

Further, all of those retired people were providing liquidity to the marketplace through their retirement plans. Most retired people back out of riskier high return investments and go into investments that don’t really add liquidity. That means interest rates will go up and the economy will begin to decline. How far, I can’t say.

On the bright side. Most of these people, especially those in their fifties, will start their own companies or become part of the underground cash economy. If it weren’t for the underground economy we’d be in very serious trouble.