Fire Grandpa! Hire Junior! Economy Fixed!
“Why older workers are paid way too much, and younger workers way too little.
The income of self-employed people does tend to track their productivity more closely, which suggests that the odd relationship of underpaying and then overpaying is a corporate phenomenon.
The intuitive explanation is that this is some kind of corporate welfarism: After all, a 50-year-old middle-manager with one kid in private school and another at Harvard needs all the financial help he can get. Twenty-two-year-old wunderkinds are perhaps happy when they realize they can buy all the beer they want.
Decades of economic studies have produced the conclusion that average wages increase with age almost until retirement, yet average productivity seems to be flat or perhaps even declining after the age of 50.”
http://www.slate.com/id/2138091/“There’s about 40 million people over 50 years old in the work force - pay them $1 million apiece severance with stipulations.
1) They leave their jobs. Forty million job openings - Unemployment fixed.
2) They buy NEW American cars. Forty million cars ordered - Auto Industry fixed.
3) They either buy a house/pay off their mortgage - Housing Crisis fixed.”
