Watch the following PBS Frontline video on the financial industry and its involvement in the 401(k) retirement system:https://www.pbs.org/wgbh/frontline/film/retirement…
Write a minimum of at least two pages on the following questions (size 12 font and double spaced). Cite all of your sources. For each of your answers I want you to provide clear reasoning detailing your position using concepts and economic logic learned in class and from the textbook. For instance, if you think GDP is negatively affected by people not having sufficient retirement savings, than you need to provide details on how you think GDP is negatively affected using economic concepts and logic. It is not enough to just say GDP will be negatively affected without sufficient reasoning.
1. The financial industry is able to hire vast amounts of highly educated workers from elite universities. In fact, large numbers of these new graduates are from engineering, physics, and science backgrounds. How do you think productivity, technological innovation, and GDP are affected by the fact that the financial industry is able to lure these highly skilled graduates into the financial industry, and away from their respective fields?
2. Due to the exorbitant fees hidden in mutual funds, many retirees will not be able to keep the same standard of living that they were accustomed to in retirement. How do you feel this will affect GDP and governmental expenditures once people start retiring and living off their savings from their 401 (k)?