Younger generations are losers

the winner of the generational war: the Baby Boomers won and Gen-X and Gen-Y lost. Fed policies insure the Boomers will benefit from financial bubbles inflated by the Fed, and the following generations will lose--not just this year or next year, but for decades to come.

 

Any nation that offers its retirees social welfare benefits (pensions and healthcare) faces a no-win demographic crunch: the number of retiring people entering the class of beneficiaries far exceeds the number of additional full-time jobs being created. In other words, it's not just a matter of having enough young people to support the rapidly expanding cohort of retirees--there must be enough good-paying full-time jobs for the young people so they can pay high taxes to fund the retirees' benefits and support their own consumption/saving.

Let's cover the fundamentals of the mismatch between what was promised to retiring Baby Boomers and the generations that must support their retirement.

The fact is that the number of full-time jobs paying more than minimum wage has stagnated while the number of retirees qualifying for pensions and healthcare benefits has soared. In the good old days of expansion, there were roughly 10 full-time workers for each retiree drawing social benefits (Social Security and Medicare).

The ratio fell to 5-to-1, then to 3-to-1, and is now 2-to-1: that is not a ratio that is sustainable without crushing tax burdens on the young.

所有跟帖： 

• 九斤老太太一代不如一代危言耸听论人类历史有多长其历史就有多长。 -路是走出来的- ♀ (0 bytes) () 01/25/2015 postreply 21:13:11

• ponsi scheme 就是这样的。 -soundofsilence- ♀ (171 bytes) () 01/26/2015 postreply 07:57:31