Many years ago I formulated the concept of “smokeless factories;” an assessment of the value of attracting people on retirement pensions, as also people with independent sources of income to locate in any country/state/province. Essentially, having people on pension/independent incomes are equivalent to having people on good pay working in prime jobs (i.e. not in the service industries)
The old formula was that for every worker employed in prime jobs 9-10 service jobs were created (lawyers, dentists, construction, retail, banking, etc, etc. etc.) however the old rule might just be outdated, as the percentage of people employed in the service industry in the U.S.A. today, for example, is said to be closer to 80% of the non-farm workforce.
Ergo, for every 10,000 people on independent incomes (pensions, investment income, etc) who locate to a foreign country there will be a knock-on effect of 100,000- 500,000 additional jobs created in the service sector… mind boggling isn’t it !!
As Spain and Portugal have fared badly since 2008, it is easy to assume that 100% of the decline was caused by the financial collapse, however, in the same period, the value of the pound
versus the Euro also collapsed, and many retirees pensions shrank so much that they returned back to the U.K., taking with them their pensions and the multiplier effect of their independent incomes, thus accelerating the decline of the “Sunshine” economies.
p.s. If France’s Francoise Hollande can ever get his mind off sex for a few minutes, he might realise how much harm he is doing to the French economy by driving his wealthy citizens out of France with his 90% tax rates.