[LibertarianInExile]

"1.) Future retirees will be denied at least some of their promised retirement benefits; 2.) Higher Social Security-related taxes and/or deficit-induced interest rates will cause a painful recession, slower long-term economic growth, or both; 3.) Spending on traditional government programs (e.g. environment, transportation, defense, national parks) will continue to get crowded out by ever-growing spending on Social Security and other entitlements."

Or 4.) all of the above.

[qam1]

Xer Ping

Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations (i.e. The Baby Boomers) are doing that Gen-X and Y will end up paying for.

Freep mail me to be added or dropped. See my home page for details and previous articles.  

[Iris7]

I agree. All of the above. One thing is for sure, those Social Security checks are going to be written.

Using taxes to offset Social Security expenses is, though, is not necessary. A combination of higher inflation and interest rates do the same job, and have the same macro results, nearly, I think.

There is a fellow who charted recessions, depressions, bank panics, periods of high unemployment, etc. against the relative numbers of older people over time. He concludes we are headed into an extended period of recession, depression, etc. mentioned above. Liquidity as measured by the yield curve over time is getting downright ominous these days. Looks bearish.