Demographic Winter

Demographics are such that few politicians are willing to tell US citizens we cannot afford the promises we have made, so the pretending continues.

Aging Population: Old Problem, New Reality; Reflections on Difficult Trade-Offs

A friend call me this morning as she pushed her four-month-old baby in a stroller. She had cut back to 4 days per week and hired a 40-hour/week nanny to cover her four 8-hour days plus commuting time. Given the cost of the nanny, the cost of commuting, and the reduction in her salary to $90,000 per year, the after-tax spending power boost she achieved by working was less than $15,000 per year. She did not like the nanny, local day care centers were all booked up, and her husband makes a good income, so she quit her job and will stay home with the baby.

Working parents will be flung off the fiscal cliff?