The Light At The End Of The Tunnel

Yep, it’s a train

For all our obsessing about it, the national debt is a singularly bad way of measuring the nation’s financial condition. It includes only a small portion of the nation’s total liabilities. And it’s focused on the past. An honest assessment of the country’s projected revenue and expenses over the next generation would show a reality different from the apocalyptic visions conjured by both Democrats and Republicans during the debt-ceiling debate. It would be much worse.

…The U.S. is in danger of reaching a generational tipping point at which older Americans have the clout to vote themselves benefits that sap the strength of the younger generation—benefits that can never be repeated. Kotlikoff argues that we may have reached that point already. He worries that the U.S. could become Argentina, which went from one of the world’s richest to lower-middle income in a century of chronic mismanagement.

Read the whole thing. Closely. As I’ve said many times, we have been our own worst enemy and we all need to cut back, and now, to have a prayer at getting out of this.

And yes that means all things need to be cut, including current benefits for retirees.

Yes, it totally sucks. But we have gleefully let politicians make promises and write checks for us on our account that we simply can’t cover.

4 Responses to “The Light At The End Of The Tunnel”

  1. Gary from Jersey says:

    The mystery is why under 30s haven’t declared generational war yet. They’re royally screwed but they just sit there, playing with iPhones, waiting to see who pulls them out of this disaster if they think about it at all.

  2. Mr. Bingley says:

    There’s no rich uncle to die.

    No deus ex machina.

  3. JeffS says:

    I suppose, Gary, because the under 30s crowd is too self-absorped, and too inexperienced to see the problems looming on the horizon. That’s the same generation who take college courses on how to balance a check book, no?

    Most of them, anyway. I know a few who have their heads on. Not enough, I suspect.

  4. Yojimbo says:

    Maybe the mandatory insurance requirement under ObamaCare will be the 2X4 they need.

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