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U.S. Standard Of Living Set To Nosedive
Newsmax ^ | 3/22/05 | cp124

Posted on 03/22/2005 7:07:05 PM PST by cp124

The developed world is on the brink of the greatest demographic change in its history, and America's standard of living will decrease by almost one-third by the middle of this century, according to a new study released by the National Center for Policy Analysis (NCPA).

The report adds that over the next 30 years, the number of elderly in the United States, the European Union and Japan will more than double, while the number of workers available to pay the elderly their government-promised benefits will rise by less than 10%.

That will require large tax increases – the payroll tax will have to climb to 23 percent over the next 30 years, while the average income tax on wages will rise from 10 to 14 percent.

The study estimates the total tax on wages will rise to 38 percent by 2030 and to 40 percent by mid-century.

Higher taxes mean lower after-tax income for workers. Less disposable income means less saving – and less saving means less capital formation. That will lead to lower labor productivity, which will mean lower real wages.

According to the study's coauthor, Laurence Kotlikoff, an economist and senior fellow with the NCPA, an economy that is short of capital would usually turn to international capital markets. But because the capital shortage in Europe and Japan will be even more severe, the two regions are likely to bid capital away from the United States.

Reforms to U.S. entitlement programs – which rely on increased saving as opposed to pay-as-you-go financing – offer hope, says Kotlikoff.


TOPICS: Business/Economy
KEYWORDS: abortion; babyboomers; despair; doomed; elderly; enditnow; entitlements; federalspending; genx; globalism; grapesofwrath; itsoveritsover; jbs; killmenow; molech; ratmurder; suicidesolution; thebusheconomy; weredoomed
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1 posted on 03/22/2005 7:07:05 PM PST by cp124
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To: cp124

What happened to all the young people? /sarcasm off


2 posted on 03/22/2005 7:08:23 PM PST by isthisnickcool (This space for rent.)
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To: cp124

Oh, good. That's a nice picture.


3 posted on 03/22/2005 7:10:18 PM PST by Termite_Commander
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To: cp124

Forty four million dead babies would have paid for a lot of stuff when they grew up and went to work. The boomers have killed half of the following generation - what comes around goes around.


4 posted on 03/22/2005 7:12:10 PM PST by WorkingClassFilth (Every morning we awaken to a new dawn is reason enough to celebrate - have a drink, Teddy!)
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To: cp124

I remember reading predictions like this thirty and more years ago.


5 posted on 03/22/2005 7:13:59 PM PST by quidnunc (Omnis Gaul delenda est)
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To: WorkingClassFilth

You've just ID'd why our politicians need a seive at the southern border...rather than a wall.


6 posted on 03/22/2005 7:14:54 PM PST by mo
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To: cp124

Yeah, well, you know how it is. There's only so much wealth in the world and it remains constant. Can't grow. Hmmm... but it can shrink? /sarcasm


7 posted on 03/22/2005 7:17:02 PM PST by Jim Robinson
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To: mo

Succinctly spoken.


8 posted on 03/22/2005 7:18:00 PM PST by alicewonders
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To: cp124

Well, yeah, if we convert to socialism, our standard of living will nosedive. But I think the assumption that the government will have to support the elderly in the future may be incorrect.


9 posted on 03/22/2005 7:20:32 PM PST by Sam Cree (Democrats are herd animals)
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To: cp124

If Congress could keep it's sticky hands off the budget and only spend what is actually called for in the Constitution, in which I don't remember billions and billions going out to buy friends and world wide charity; cut off the illegal welfare, that would go a long, long way to keep us afloat. If we produced our own oil, that would help. There are many many ways each of us could help. Electing new faces in congress would probably be the biggest help of all!!


10 posted on 03/22/2005 7:20:47 PM PST by momf ( (Amnesty for ILLEGALS is a slap in the face to the American citizens and laws))
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To: WorkingClassFilth

Malthus


11 posted on 03/22/2005 7:21:33 PM PST by Cobra64 (Babes should wear Bullet Bras - www.BulletBras.net)
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To: cp124

This is the main advantage of a tax-paying immigration system. Be a good citizen.


12 posted on 03/22/2005 7:21:43 PM PST by jolie560
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To: WorkingClassFilth

Dr. Kevorkian will be appointed to head Soc. Security Administration and he will surely straighten the things up in a short order.


13 posted on 03/22/2005 7:21:48 PM PST by GSlob
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To: cp124
I guess his glass is half empty.

Capitalism is alive and well. Cut out the pork projects
and change Social Security in a real way and my cup is
not half full but over flowing.

When the government takes on a socialist course then I
am of the half empty opinion.
14 posted on 03/22/2005 7:22:01 PM PST by cleo1939
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To: cp124

This is based on the extremely dubious assumption that we will do nothing at all to change current policies.

The political tide is turning as a larger and larger segment of the voting population consists of those who are being ripped off by SS rather than those who are doing the ripping off.


15 posted on 03/22/2005 7:23:56 PM PST by thoughtomator (Will Michael Schiavo get away with murdering his wife? Stay tuned to find out!)
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To: cp124

A worthwhile project would be to replace those 44 million babies inside of a generation. Get busy y'all.


I am convinced that beginning in 2010 there will be massive number of immigrants from Europe, mostly young people who are tired of having no future. You heard it here first.


16 posted on 03/22/2005 7:24:12 PM PST by TexanToTheCore (Rock the pews, Baby!)
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To: quidnunc
"I remember reading predictions like this thirty and more years ago."

I couldn't agree more. I had to live with duck and cover during the Cuban missile crisis (more like duck and kiss it good bye) and the soviets gonna bomb us off of the face of the earth. Life is tough at times, but we are going to make it (unless, of course, the Venusians decide to take us out once and for all).
17 posted on 03/22/2005 7:24:25 PM PST by texaspirate (Texas, learn it, live it, love it.)
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To: texaspirate; All

Heck when Reagan was President every day I heard stories like this... Of course when the slickster was Pres, everything was wonderful!!


18 posted on 03/22/2005 7:26:46 PM PST by KevinDavis (Let the meek inherit the Earth, the rest of us will explore the stars!)
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To: cp124
A very simple, fundemental question for folks who are too young or naive to think.... When was the Federal Income Tax Bill legislation passed? Next question: when was your State Income Tax law passed? Next question: When was your Sales Tax law passed? Next question: When was/is/was your Gasoline Tax law passed? The list is endless.

Anyone "Got It"?

19 posted on 03/22/2005 7:27:20 PM PST by Cobra64 (Babes should wear Bullet Bras - www.BulletBras.net)
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To: cp124

When I look at the ever larger numbers of poorly educated kids our schools are churning out, I wonder whether there will be enough decent wage earning people to support social security. They've said that soon there will only be 2 workers for every retiree, but they haven't said much about the earning capacity of those 2 workers.

When you consider that we've rarely ever seen tax increases on the poor, you have to know where the increased revenues are going to come from.


20 posted on 03/22/2005 7:28:18 PM PST by umgud
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