Video on the Economy- 60 Minutes featuring US Comptroller

[captZEEbo]

http://www.youtube.com/watch?v=KGpY2hw7ao8

Anyone have any idea how they're going to fix this? Also, how realistic is it that our economy collapses completely in 30-50 years?

[DcifrThs]

[ QUOTE ]
http://www.youtube.com/watch?v=KGpY2hw7ao8

Anyone have any idea how they're going to fix this? Also, how realistic is it that our economy collapses completely in 30-50 years?

[/ QUOTE ]

well in terms of social security, either benefits will be cut or taxes raised. this will hurt the economy but not cripple it.

health care, though, i'm less informed about and i don't know exactly how that will play out.

it seems that if health care prices keep outpacing inflation at the current rate (and there's no reason to think it wouldn't), the government entitlement programs of medicare and medicaid will not be able to keep up. either taxes would have ot be ridiculously higher (totally unreasonable given the projected level of deficit here), benefits will need to be reduced (which would be politically difficult..it's easier to give benefits than take them away), price controls on medical costs for govt entitlement programs would have to be instituted (pretty much not happening), or some combination of the two first ones (fewer benefits + tax hikes).

if left unchecked, the entitlement progams will simply fail and the party in power at the time will pay the price, as will the health of those individuals, and the economy since less consumption would ensue as more $$ would be needed for medical costs or individually purchased insurance.

for those who couldn't afford it w/o govt sponsorship, they'd be screwed (i.e. dead or disabled).

i don't think we've seen something like this to be able to guess exactly how it would play out.

but it is clear that something needs to be done now.

it is equally clear that nothing will likely be done now.

so yea, we're gunna be in some trouble later.

Barron

[ThaSaltCracka]

Barron, you probably know this, but health insurance and social security have been massive issues for a while. No one will do anything about it because old people need them and old people vote all the time, for everything.

[ThaSaltCracka]

well, yet another depressing video. Man, everything is GRRRRRRREAT right now.

[Nielsio]

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well, yet another depressing video. Man, everything is GRRRRRRREAT right now.

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lolol

[Tornado69]

me and others have totally ruined your life in the past few days haven't we TSC lol. I feel better than brainwashed morons who don't understand federal reserve/bankers/media stuff etc.

[ThaSaltCracka]

LOL

I knew things were getting worse. Its hard not to realize it. My paycheck basically disappears within a week, even if I don't go do anything. My experience isn't unique either.

The Amero discussion was completely new to me and it did open up a whole lot of new things to me. I guess I was simply not paying attention, like most people nowadays.

After reading more about the Fed Reserve and the subprime issue, I am basically [censored] bricks. I talked to my boss at work and she was pretty confident this all wouldn't effect my company, so I can take solace in that. But I worry how all of this is going to play out for everyone else.

[DcifrThs]

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Barron, you probably know this, but health insurance and social security have been massive issues for a while. No one will do anything about it because old people need them and old people vote all the time, for everything.

[/ QUOTE ]

of course, but as it gets closer to "judgement day" the needs of the old may be sacrificed by the needs of the more and more passionately voting many (who see impending disaster).

time will tell...hopefully a sweet story [img]/images/graemlins/smile.gif[/img]

Barron

[ThaSaltCracka]

yes, get the popcorn ready.

[Copernicus]

[ QUOTE ]
[ QUOTE ]
Barron, you probably know this, but health insurance and social security have been massive issues for a while. No one will do anything about it because old people need them and old people vote all the time, for everything.

[/ QUOTE ]

of course, but as it gets closer to "judgement day" the needs of the old may be sacrificed by the needs of the more and more passionately voting many (who see impending disaster).

time will tell...hopefully a sweet story [img]/images/graemlins/smile.gif[/img]

Barron

[/ QUOTE ]

As you note in your earlier post, Social Security needs relatively minor fixes to bring it back into balance, mostly in the form of another increase in full retirement age. That will not be particularly onerous for most, because business needs the boomers to phase into retirement, not leave completely, and the IRS is finally waking up to phased retirements from corporate plans. also as mortality and morbidity continue to decrease retirement at 62 or 65 becomes less attractive.

Health care is, as you note a knottier problem. However, there ultimately must be some natural economic constraints on how high medical costs can go. As costs increase more rapidly then other goods and services an ever increasing portion of the GDP is health care related. Just as everyone can be an insurance salesman (despite Woody Allen's vision of the future), not everyone can work in health care and spend all of their money on health care as well.