The Slow-Motion Train Wreck of Entitlement Programs

May 8, 2014

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

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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(Video) #Benghazi Rep. Gowdy asks some darned fine questions

May 8, 2014

 

"Star rising?"

“Star rising?”

It was recently announced that Congressman Trey Gowdy (R -SC), a former state and federal prosecutor, would  be heading up the forthcoming House Select Committee on the Benghazi massacre. Quite a few of us have been cheering his selection, because, since the massacre, he has shown himself to be a master of the issues at stake and a dogged questioner, unlike most of the so-called press.

And speaking of the press, and courtesy of my blog-buddy ST and Kat McKinley, here’s video of Rep. Gowdy posing some questions to the press. Consider this an appetizer for the main course to come:

Let’s hope, for the sake of an honest media, that at least some in the audience were red-faced at receiving this needed lesson.

Bring on the hearings. smiley popcorn