Here is a brief excerpt from a NYTs op-Ed by Steven Rattner. It contains some interesting insight and some interesting observations. You should take the time to read the full article. He makes some key points which I find very important.
- Long-term debt and the entitlement obligations already created are a major concern.
- There needs to be an inter-generational solution to these problems of funding and debt.
- Everyone, not just the wealthy are going to pay more in taxes.
- The baby boomer and prior generations are consuming a large share of resources for which they have not paid.
He also raises the issue of means testing for Social Security. Keep an eye on this red herring, you will hear it more and more. Heading in that direction is a big step toward the welfare state. It may sound appealing now, but once in place it will apply to more and more things and the definition of “wealthy” will decline as it is discovered spending on the non-wealthy is again unaffordable. Truth be told higher income Americans are already paying and have paid a greater share of the cost of entitlement programs. This is true for both Medicare and Social Security in the form of higher taxes and premiums and higher benefits skewed to lower-income Americans.
There is another issue in my mind. That is the Millennials life styles. We can look at all the facts and figures, student loans, slow growth in income and all the rest, but as I look around and observe spending habits I see a big gap in what the stats would appear to dictate and the reality. If Millennials have no money, how do all the businesses and services selling them non-essential stuff stay in business? Who buys the iPhones, music, attends concerts, gets tattoos, drinks Starbucks daily and more?
Hey, life has been hard for most generations …. just check your history book. This generation complains about student loans for a college degree, my grandfather had to work and didn’t get past 8th grade, my college degree came after nine years of night school while working full-time. 🍷🍷🍷🍷🍷🍷🍷🍷🍷🍷
They are faced with a slow economy, high unemployment, stagnant wages and student loans that constrict their ability both to maintain a reasonable lifestyle and to save for the future.
Longer term, rising federal debt payments and increased spending on Social Security and Medicare will inflict a tremendous financial burden on them, threatening their own prospect of receiving promised retirement benefits.
To a considerable extent, that’s the fault of my generation, the baby boomers. We were the children of the Greatest Generation, but we may also be the most irresponsible generation.
via We’re Making Life Too Hard for Millennials – The New York Times.
QUINNSCOMMENTARY 
It is Monica Lewinsky’s fault – but I believe she is a Gen Xer, not a millenial.
Steve Rattner is a joke. This is the same guy who managed the General Motors bailout, which dumped an added $50B of costs onto millenial taxpayers through a massive increase in the annual deficit and debts (between the special tax preferences, and the direct bailouts to the UAW retirees). When he speaks, he lies – because he believes your income and your wealth belong to the beneficiaries of the promises politicians made to individuals to buy their votes (and yes, Virginia, that includes former President George W. Bush who dumped $10+T of new unfunded liability onto the millenials through the Medicare Part D prescription drug program).
Ask him, how much taxation is enough to feed the entitlements beast. You will never get an answer.
When people politely discuss issues with former President Bush, ask him who is to pay the cost of Part D for baby boomers, and did he enjoy the four more years it bought him in office?
In terms of baby boomers being irresponsible, it was members of the greatest generation that did almost all of the expansion in Medicare and Social Security – starting in the 1940’s and continuing on through the early 1980’s. While inadequate, once some of the oldest baby boomers got into Washington in the 1980’s, we got the Social Security Amendments Act of 1983. Lay the blame at George W. Bush’s feet for again pushing us in the wrong direction.
I say it is Monica’s fault, and her decision to keep the blue dress, because Bill Clinton’s “blue ribbon” committee came up with three proposals that, while they were not what I would recommend, at least would have been a start and perhaps resulted in a finish on starting to address this issue. He had all the players in place – Republicans controlling the house and senate and positioned to take the blame in the 2000 election (so Al Gore could be elected). He could take the credit for addressing the issue, and dump the blams for the increased taxes and adjustments to benefits on the Republicans – confirming that he vetoed 1, 2, 3, 4, 5 or more proposals until they gave him something he could grudgingly and unwillingly accept (a la Welfare Reform).
The Millenials overwhelming voted for Barack Obama whose stimulus and bailouts were designed to maintain a status quo that no longer exists. Even legislation that has good intentions gets loaded up with more pork, more bailouts (which is pretty much what the Democratic Socialists want to morph Social Security and Medicare into – means testing, which, we kind of already have when it comes to Medicare Part B and Part D). For example, look at the most recent trade deal – we got more Trade Readjustment Act subsidies for people who want to hold onto the value of their jobs where their jobs were eliminated by competition. Why should there be greater benefits just because unemployment occurred due to competition from abroad (versus domestic creative destruction/competition).
Assuming the Millenials will vote for more politicians like Obama (Hillary Clinton shares many perhaps most of his views) or Bernie Sanders or Martin O’Malley, and, you can bet that in our twilight years, we will see the millenials attempt to maintain the status quo – to foist off the greatest generation, baby boomer and their own new entitlement burdens (like health reform), onto the generations to follow. Hello Greece.
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