The Boomers' Time-Bomb Denial

Washington Post ^ | January 7, 2004 | Robert Samuelson

[cogitator]

"What's astonishing is that the problem has been known for decades. A prudent society would have prepared by adjusting federal retirement programs to emerging social and economic realities. People can pay for their own retirements through savings and, possibly, part-time work, or they can rely on others, mainly workers and taxpayers, to pay through government programs. As life expectancy improved, the obvious response was to begin gradually -- with much advanced warning -- raising eligibility ages and tying benefits more to income. This would have encouraged saving and tempered future increases in federal spending.

Little was done. Political leaders of the "greatest generation" ignored the future, and now their baby-boomer successors -- led by presidents Clinton and Bush -- are doing the same. But not all blame belongs with leaders. In a new book, "Who Will Pay?" economist Peter Heller of the International Monetary Fund observes that average citizens have been enablers of the politics of denial. No less than their leaders, they're shortsighted, he argues. Or perhaps just selfish."

[cogitator]

Sobering long-term projections in this. And it has very little to do with the ups and downs of the business cycle, aided and abetted by, or discouraged by, tax policy.

[Alberta's Child]

". . . average citizens have been enablers of the politics of denial. No less than their leaders, they're shortsighted, he argues. Or perhaps just selfish."

Or perhaps just ignorant and/or stupid.

Spanish philosopher Jose Ortega y Gassett used the term "modern barbarians" in the 1930s to describe people who were well-educated, well-dressed, and enjoyed a good standard of living, but were dumb as a bag of rocks when it came to understanding matters related to economics and politics.

"Their response to a shortage of bread," he wrote, "is to burn down the bakery."

[VRW Conspirator]

"modern barbarians" ...

Thanks for the tidbit.

On another note: Gen X, Y and Z are going to take a beating when the boomers retire.

[cogitator]

On another note: Gen X, Y and Z are going to take a beating when the boomers retire.

For a preview of this, we can look at Japan. Japanese used to revere their elders. Now they are viewed as a drag on the society and economy. And their long-term projections are worse than ours.

The Face of The Future In Japan; Economic Threat Of Aging Populace

[Capitalism2003]

Anyone 25 and under today is absolutely screwed. They will be enslaved by debt and massive (50-80%) federal tax rates to fund the boomer social insecurity entitlements. Thanks FDR.

[Alberta's Child]

This Gen X-er has no intention of taking a beating, even if it means breaking the law or moving assets out of the country.

Ironically, the Boomers have left quite a legacy of pragmatic nihilism. When all is said and done, their own children will avoid "taking a beating" by euthanizing their parents.

[hobbes1]

As Heller notes, one possible response to a future budget crisis would be for government to "abandon or suddenly scale back on" commitments to retirees. Abrupt benefit cuts would be arbitrary and unfair. But given baby boomers' role in sanctioning today's indifference and denial, they would be richly deserved.

ROTFLMAO! Just like I said. Means testing for the 50 year old 401k Crowd. Buh Bye.

[Ciexyz]

Here we go again, pitting one generation against another. My many years of working supported the generation that went before me. Now that I am retired (as of Oct. 31st of last year), it sounds like some people want to change the rules so that I decrease so that they (the younger generation) increases.

Hey, I have no problem with improving the system -- but it kills me to hear the bellyaching of the Generation X Y and Z-ers who want to kill our benefits so they have more money to fly to Aruba. Sorry guys, people 50 and over will never allow it to happen. If you don't believe me....see me at the voting booth.

[hobbes1]

No, he leaves out the growing push to privatize Socialist Insecurity, couple that with effective means testing, and it takes care of itself.

[Ciexyz]

I read threads like this and congratulate myself for joining AARP as soon as I reached age fifty.

[hobbes1]

There is rapidly approaching a point where the above 50 crowd will die off, and be supernumerated by the 30ish crowd.


Fear the Voting Booth.

[NeoCaveman]

Ironically, the Boomers have left quite a legacy of pragmatic nihilism. When all is said and done, their own children will avoid "taking a beating" by euthanizing their parents.

By nihilism you mean aborting 40 million would be taxpayers? Being euthenized by those who "made it out alive" has a certain poetic justice to it.

[NeoCaveman]

Here we go again, pitting one generation against another.

In other words you are saying "layback and enjoy it" to us, who are and will be financially raped..

[NeoCaveman]

I read threads like this and congratulate myself for joining AARP as soon as I reached age fifty.

Great organization.....for socialists!

[Little Bill]

I just got my Socalist Security report for the year, the pay out is about 10% of contributions for the last 42 years, I have paid the max for the last 36 years. If that went into an account paying the average interest rate during that period the benefit would have been 3x higher, low estimate.

[FlatLandBeer]

Don't forget that all 401K and IRA money will start being pulled out of those accounts about the same time. This money that has been tax defered for the last 20-30 years will be taxed aa regular income. The estimated tax revenue is equal to the the shortfall. If the equity markets also continue to grow at the rates thay have in the past few years that money should be even greater.

[blam]

I've had two brothers die at the age of 51...They'll never make a claim on the SS system. (But, I expect 'X' number of deaths are already 'programmed' into the numbers.)

[hobbes1]

Yes the average life expectancy for a black man is 67....retirement age.

[MEGoody]

"When all is said and done, their own children will avoid "taking a beating" by euthanizing their parents."

Interesting take on the generations.

The Boomer's wanted entitlements.

The X and Yers want to commit murder.

If that's true, I'd have to say it isn't the Boomers who are the 'worst generation' as some have said.

[blam]

"Yes the average life expectancy for a black man is 67....retirement age."

A lot of the inner-city 'youth' drug related deaths are distorting that number. A black man that gets beyond the age of 35 has a lot higher life expecency.