The case against the Baby Boomers who live for short gain

Oct 5 2012, 11:39 AM ET
Perhaps most egregiously, the baby boomers, led by boomer-coddling leaders in Washington, are bequeathing a runaway national debt and a gaping federal budget shortfall that their children and grandchildren will have to pay–through higher taxes or reduced benefits, or both–if they don’t want the country to go broke. Balancing America’s future receipts and obligations would require all taxes to rise by 35 percent “immediately and permanently,” and all federal entitlement benefits to decrease by another 35 percent, the International Monetary Fund estimated last year. Shielding boomers from that pain–as most so-called deficit hawks in Washington propose–would dramatically increase the bill for everyone else. Brigham Young University economists Richard Evans and Kerk Phillips and Boston University economist Laurence Kotlikoff published a paper in January that projected a 1-in-3 chance that the U.S. economy will reach “game over” within 30 years. In their definition, “game over” means that the government’s obligations to seniors (thanks again, boomers) will exceed 100 percent of everyone else’s earnings. In other words, all the young workers in America together won’t earn enough to pay down the government’s obligations to their parents.

Author: Gilbert Tan TS

IT expert with more than 20 years experience in Apple, Andriod and Windows PC. Interests include hardware and software, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader.

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