I agree with that. COVID policies and programs make it more profitable to stay home and collect government benefits. But our problem is more long term than that. Here are a couple of interesting charts showing the labor participation rates for 25-64 year olds and those over 65 by country. The US has a fairly low rate compared to other countries for the 25-64 year olds, but a much higher 65 and over participation rates. IMO this can be explained by more generous social welfare systems in these other countries.
For 25-64 years old, we have a rate of 77.2% compared to the UK with 82.6% or Canada with 80.9%, or Germany with 84.4% or Japan with 85.6.
For those over 65, the US has 19.4% rate compared to the UK with 10.7%, Canada with 13.8%, Germany 7.4%, and Japan with 25.5%. The Japanese have an older population coupled with being among the countries with the highest life expediencies. Americans have not saved enough to live on SS alone. For 50% of Americans over 62 SS is their lone source of income.
