Posts tagged ‘population cliff’

Don’t let your grandparents steal your money.

In 1950, there were 16 workers paying payroll taxes for each retiree collecting Social Security benefits. Today, there are 3.3 workers supporting the Social Security and Medicare benefits of each retiree. In the future there will be only 2 workers paying taxes to support the benefits of each retiree.

Demographics is a bigger problem than health care costs

Stan Druckenmiller, one of the best- performing hedge fund managers of the past three decades, has a warning for the youth of America: Don’t let your grandparents steal your money.

Druckenmiller, 59, said the mushrooming costs of Social Security, Medicare and Medicaid, with unfunded liabilities as high as $211 trillion, will bankrupt the nation’s youth and pose a much greater danger than the country’s $16 trillion of debt currently being debated in Congress.

“While everybody is focusing on the here and now, there’s a much, much bigger storm that’s about to hit,” Druckenmiller said in an hour-long interview with Stephanie Ruhle on Bloomberg Television’s Market Makers. “I am not against seniors. What I am against is current seniors stealing from future seniors.”

Druckenmiller said unsustainable spending will eventually result in a crisis worse than the financial meltdown of 2008, when $29 trillion was erased from global equity markets. What’s particularly troubling, he said, is that government expenditures related to programs for the elderly rocketed in the past two decades, even before the first baby boomers, those born in 1946, started turning 65.

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Demographic Winter

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?

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