Monday, June 15, 2009

Sorry, kids

Economist: "The biggest bill in history"

Not since the second world war have so many governments borrowed so much so quickly or, collectively, been so heavily in hock. And today’s debt surge, unlike the wartime one, will not be temporary. Even after the recession ends few rich countries will be running budgets tight enough to stop their debt from rising further. Worse, today’s borrowing binge is taking place just before a slow-motion budget-bust caused by the pension and health-care costs of a greying population. By 2050 a third of the rich world’s population will be over 60. The demographic bill is likely to be ten times bigger than the fiscal cost of the financial crisis.
H/T Maggie's Farm. I'm so weary of repeating this, but I'll give it another try. There's no point searching under the couch cushions for money to pay for universal health care. That money has been spent a long time ago to pay for Social Security and Medicare. There's nothing left. It's gone.

"The system is unsustainable." Any of this getting through? For heaven's sake, let's not pour gasoline on the fire with a public health care program that will tip us permanently into European socialism.


Anonymous said...

The up-shot for libertarians is that our debt-tsunami is virtually guaranteed to sweep away federal entitlement programs. Even if the governmeent doesn't default on all this debt by 2040, the dollars it will be paying out will only have symbolic value at best. Not unlike Russia in the 1990s paying out 50,000 Rubles per month to pensioners, which (at the time) would get you a couple nice loaves of bread.

Anonymous said...

Anybody notice the newly-revised estimate for social security insolvency is now 2037?

I'll be 68 in 2037. Just in time to NEVER receive any benefits, despite having paid into social security my entire adult life.

Thanks for nothing, federal government.

David said...

"tip us permanently into European socialism"

But that is exactly the goal of this administration.

If you don't believe that you have not been listening to them. They don't even try to hide it anymore.

Anonymous said...

2037, 2040, 2050

The only thing that can derail these frightening predictions is reality.