The Slow-Motion Train Wreck of Entitlement Programs

Phineas Fahrquar:

Another of the definitions of insanity: refusal to change policies and programs that are clearly headed for disaster. Also, progressives.

Originally posted on International Liberty:

The Census Bureau just released a report on America’s aging population.

The big takeaway is that our population will be getting much older between now and 2050.

And since I’m a baby boomer, I very much like the fact that we’re expected to live longer.

But as a public finance economist, I’m not nearly as happy.

As I explain in this interview with the Wall Street Journal’s Digital Network (and as confirmed by BIS, OECD, and IMF data), the United States is going to get deluged by a tsunami of entitlement spending.

I mentioned that it’s important to focus on the ratio of workers to retirees. This “dependency ratio” matters because economic output largely is a function of an economy’s working-age population.

To cite my famous cartoons, you need a sufficient number of people pulling the wagon to support those riding in the wagon.

Here’s a chart…

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One Response to The Slow-Motion Train Wreck of Entitlement Programs

  1. […] The Slow-Motion Train Wreck of Entitlement Programs […]

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