Saturday, October 19, 2013

Generational theft - the college tour

Oh man how much do I love this guy?  The Wall Street Journal has a weekend interview with former hedge fund manager Stanley Druckenmiller: "How Washington Really Redistributes Income - The renowned money manager goes back to school to explain how entitlements are helping the Baby Boomers rip off future generations."
While many seniors believe they are simply drawing out the "savings" they were forced to deposit into Social Security and Medicare, they are actually drawing out much more, especially relative to later generations. That's because politicians have voted to award the seniors ever more generous benefits. As a result, while today's 65-year-olds will receive on average net lifetime benefits of $327,400, children born now will suffer net lifetime losses of $420,600 as they struggle to pay the bills of aging Americans.
One of the great ironies of the Obama presidency is that it has been a disaster for the young people who form the core of his political coalition. High unemployment is paired with exploding debt that they will have to finance whenever they eventually find jobs.
Druckenmiller is touring college campuses to make kids aware of the debt trap they're marching into.  If entitlements are not reformed, they'll be reformed for us as the trust funds run dry and higher interest rates drive up debt service.

You can pay now or you can pay later, but you're gonna pay.


commoncents said...

Bill O'Reilly's 10/18 Talking Points Memo is amazing...

fabulousmoolah said...

For Bill O'Reilly perspective at its finest, nothing beats this: