Under the circumstances, I don’t think anyone would be saying “saving for your retirement is a pyramid scheme—it depends on the assumption of future economic growth!” Future growth is a prudent assumption. But I also don’t think people would just be saying “well, we need to make some tough choices.” I think they’d be saying that we shouldn’t meekly accept the premise of slower economic growth. They’d be calling for more immigration, especially of high-skill people.Discussing the implications of his theory that we are in The Great Stagnation, Tyler Cowen offers this:
5. If threshold savings is not an issue for you (e.g., needing to save a certain amount to put a kid through college), you should consider higher levels of consumption as a response to The Great Stagnation. Real rates of return on savings will not be fantastic, and risk-taking will be rewarded less. Spending is one sure way to get your money's worth.