From Heritage:
The year when Social Security begins to spend more than it takes in, 2016, is by far the most important year. From that point on, Social Security will require large and growing amounts of general revenue money in order to pay all of its promised benefits. Even though this money will technically come from cashing in the special issue bonds in the trust fund, the money to repay those bonds will come from other tax collections or borrowing. The billions that go to Social Security each year will make it harder to find money for other government programs or require large and growing tax increases.As I've noted, the trajectory for the federal government, even before Obama's spending spree, is towards a system of tax collection on the revenue side and payments to seniors and bankers (for interest on the national debt) on the expenditure side. Discretionary spending? Um...no.
3 comments:
Can we start acknowledging baby-boomers as the most selfish generation in history?
They're the only generation in history that will enjoy full social security, medicare/medicaid benefits at the expense of their own children & grandchildren, who will spend their entire lives paying into entitlement programs, and never to receive any benefits.
Let's also acknowledge that there isn't enough money in the world to pay for all these benefits. So, we are going to print more and inflate our way out of it.
Assuming there is no real change in governing philosophy the outcome is clear.
The boomers will get some benefits. Right now they are a generation with tremendous assets, great pension plans, all sorts of IRAs, etc.
The post-boomers, my children's age, will get no benefits. But many have made their own money.
And those under 30 will get poverty at best and de facto slavery at worst.
Even to boomers and post-boomers I say "good luck in keeping your assets" so as to provide for yourself. The government will to have to switch from taxing income and consumption to taxing assets.
In simpler words, if they want it they will seize it. No government in history has declined to do so when sufficiently hard pressed.
The new wealthy will be those politically connected and those with government jobs.
And those two groups aren't doing badly already.
The most prosperous place in the US is the Washington D.C. metropolitan area.
Media tells us the woes of some pockets of laid-off government workers. But check out the numbers, total government employment goes up year after year in good times and bad.
There are ways out. Cannibalism comes to mind. So does "A Modest Proposal".
K
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