Savings & Fed Budget
As anyone who has looked at the numbers knows, the federal government’s current budget deficit is, in a sense, only the tip of the iceberg of the fiscal problems to come. The federal budget is on an unsustainable path. When the baby-boom generation retires and becomes eligible for Social Security and Medicare, all hell is going to break loose. The policy options aren’t pretty—either large cuts in promised benefits or taxes vastly higher than anything ever experienced in U.S. history. (Mankiw)
There, a world class economist (who at least a few years ago was on the Bush economic advisory team) said it. Is anybody listening yet???
There, a world class economist (who at least a few years ago was on the Bush economic advisory team) said it. Is anybody listening yet???
Delivered to your doorstep
4 Comments:
Nope. And that means lots of little old ladies eating dog food huddled over a coleman lantern.
Or wearing the blue vest at Wallmart.
OK, seriously Trent. You don't think anyone is listening? THis is a major issue in DC, especially with the administration. But let me ask you this...
What's the solution?
Everyone has the problem down pat, but the only options are cut benefits or skyrocketing taxes. Two options that are 1. political suicide and 2. unsustainable.
I for one don't want to see my income taxes baloon, and I know you, as the economist/republocrat that you are wouldn't want to see the taxes that are needed to sustain social security.
Bottom line, a great program in the 30's. A great program to support our elderly poor. A great program that has seen its time come and go.
A bit off topic, but your comment reminded me of a thought:
At some point politicians are going to have to choose solutions not because it will win them political gain, but because it will work and is good for the people. A sad day we see when longevity is the goal, not solutions.
It doesn't neccessarily pertain to this issue, but it does to others.
And the eventual rocket of taxes has been talked about for years now. It's not like we haven't seen it coming. Cheers to us for reaping all the benefits.
One of the things that I did support with the Bush administration was the social security reform, however, my problem with it was that he failed to show any reasonable way of funding it. More tax cuts and reform a totally bloated social program? Unrealistic.
The sad fact is that the baby boomers control this country, and they will keep on voting for the guy that doesnt tax them and gives them tons of benefits. This means: No funding for the sciences, education or even national security.
If I were supreme ruler of the world, I would: Increase retirement to 70 (or perhaps later), raise taxes now to afford an overhaul of the social security system (a similar system to what Bush proposed), and put caps on medicaid (frankly medicaid is bullshit, when the real good ROI would be funding healthcare for the under 18. Proper nutrition and health early in life means less health care costs later in life).
This is an emotional issue though, and some elderly will be left out in the cold. This I do not have a solution for.
Post a Comment
Links to this post:
Create a Link
<< Home