America was once a place where people believed that they could work hard and improve their lot in life. Well, it appears that dream is mostly dead. Read this article and observe the lack of optimism for America's future: http://news.yahoo.com/s/yblog_thelookout/20110503/ts_yblog_thelookout/optimism-about-future-for-american-youth-at-all-time-low.
Besides the fact that most people are right, what else is deeply disturbing about this article?
This paragraph: "Older Americans were much more pessimistic about the future than younger ones. Among those between the ages of 50 and 64, just 36 percent said they expected younger Americans to have a better life than their parents, and among those 65 and over, just 37 percent did. By contrast, 57 percent of 18- to 29-year-olds said they expected their lives to be better than their parents'. Among Americans aged 30-44, 45 percent agreed with that view--a total just about in sync with the results as a whole".
Question: Why are the Boomers much more pessimistic about our futures than we young people are?
I have a theory: it's because they know they screwed things up for young people in terms of destroying our image in the world, creating massive liabilities that we will have to pay for (e.g. Social Security and the public debt), and screwing up our education system so badly (in terms of quality and price) that we young people will not be ready to compete in tomorrow's economy.
In short, I believe the Boomers may feel a little bit bad. But, I doubt they feel bad enough to do anything about the problems they created. I seriously doubt they are willing to cut their retirement benefits or raise taxes on themselves. I do not believe they will help us when we finally wake up and realize our education system sucks. Basically, I do not believe they will fix the messes they created.
And, I believe that will impact how the Boomers will be remembered. The generation that did a lot to push minority and womens' rights forward will not be remembered for those actions. They will be remembered for their partisan bickering, their refusal to serve in Vietnam, and their unfettered licentiousness. Mostly, though, the Boomers will be remembered as the generation that financially and morally bankrupted America because of their selfishness and unwillingness to make small sacrifices.
So, Boomers, do you want history to remember you as the most selfish generation the USA ever saw? If not, you should make things right. Fix America's debt problems, the education system you screwed up, our entitlements, and our image in the world. If you do not fix the mistakes you made, I can promise you this: history will not remember you kindly and we young people will make sure of that.
Showing posts with label National Debt. Show all posts
Showing posts with label National Debt. Show all posts
Tuesday, May 3, 2011
Friday, April 29, 2011
Higher Taxes + Inflation = A Huge Problem for Middle Class Americans
I was reading Paul Krugman's blog when I came across an article he published a few days ago titled "Let's Take a Hike". In this article (access it here: http://www.nytimes.com/2011/04/25/opinion/25krugman.html?_r=1&scp=3&sq=paul%20krugman&st=cse#), Dr. Krugman bashed the most-recent Republican plan (the Ryan plan) to deal with the country's horrific public deficit and debt problems.
His problem with the Ryan plan was, essentially, that it only dealt with one aspect of balancing the federal budget: cutting spending. Not only does Paul Ryan want to cut spending, he wants to cut entitlement spending and that is unacceptable to Dr. Krugman (I don't see a problem with cutting entitlement spending due to the fact that our entitlements are way out of line. It just seems like Dr. Krugman is protecting himself and his fellow Boomers).
Dr. Krugman believes (and rightly so, in my opinion) that we need to raise taxes to attack the deficit and public debt problems. Specifically, he believes we should repeal the Bush tax cuts and increase the Social Security cap while cutting defense spending: according to some estimates, this program will balance the budget by 2014 and create a surplus by 2021.
I have some issues with his prescriptions, though. First, I do not agree with his assessment that defense spending should be the only target of budget cutting. Defense spending needs to be trimmed down by renting out our overseas bases, ending operations in Iraq, and finishing up in Libya immediately. But, entitlement spending needs to be dealt with as well. It is crazy to think that only our warriors need to have their funding cut while retirees and welfare recipients do not have to pitch in. That proposal is not just at all.
Second, I do not think taxes should be raised immediately (mainly because the economy is still a little wobbly and we need to secure our growth rate with consumption spending). I would prefer to see cuts in entitlement spending and defense spending first, and then an increase in taxes on the wealthy. A small increase in taxes on everyone else should be a last resort after the economy has stabilized. I believe things should go in this order because of the relative rate of return of each type of relief (as I will explain) and due to Krugman's own call for "shared sacrifice".
Entitlements produce very little long-term value for the USA (especially the way they are run now in terms of underfunding issues and excessively large benefits). In order to save Social Security, Medicare and Medicaid for the long term, it is necessary to make cuts to those programs immediately; the savings we start making now will compound over the long term, hopefully bringing the programs back to solvency. Additionally, (it may be cruel to say, but it's true) the retirees and the poor who benefit most from entitlements are essentially getting paid to NOT work. They're getting money from the government to get by, and I do not believe they should be exempt from the pain the people who are actually working feel. Entitlement recipients need to share our sacrifices, too. I propose a modest, but immediate 2% decrease in all entitlement benefits: this step will save about $45 billion every year while not crushing the indigent and elderly.
Additionally, we can look at the joke that is Medicare Part D: it is primarily an unfunded liability that was pushed through by a Republican Congressman (Billy Tauzin) who immediately resigned after Part D's passage and is now making $2 million annually working for a pharmaceutical lobbying group. The real stinker about this program is that it does not allow the federal government to negotiate drug prices with pharmaceutical companies (thanks to Tauzin) on behalf of enrollees in the program (the elderly): enrollees, and, eventually, Medicare Part D, pay about 58% more for drugs than the VA does. As of 2009, Medicare Part D received about $50 billion in revenue: only $5 billion of that came from beneficiaries. The other $45 billion came from federal and state government payments. This program stinks of government excess and pharmaceutical corporate welfare and should be shut down immediately.
Defense cuts should occur alongside entitlement cuts. Specifically, we spend $60 billion annually in Iraq and we spend an additional $42 billion by running our 662 bases around the world (not including Afghanistan). If we rent out those bases (see: http://theyoungandthescrewed.blogspot.com/p/solution-to-young-americans-current-and_23.html) we could make billions of dollars while saving $60 billion annually by stopping operations in Iraq. That is an additional $100 billion shaved off the budget.
After some substantial cuts have been made to government spending, we need to look at taxing the super-rich. I don't believe everyone knows this, but individual income after the first $106,800 is not subject to the Social Security tax of 6.2%. That cap needs to be removed. Depending on estimates, that would earn the government about $200 billion in extra revenue.
I am skeptical of Krugman's call to raise taxes on the middle class, however. This may be my conspiracy side talking, but I believe we may very well be headed for an intentionally created bout of inflation (as I said yesterday, Bernanke raised his inflation expectation to 2.8% this year, and that is probably optimistic given the awful rise in oil prices). Throwing additional tax burdens on an already cash-strapped middle class seems like a good way to run tens of millions of Americans into the ground like a certain Russian leader once proposed (see: http://www.brainyquote.com/quotes/quotes/v/vladimirle125951.html).
(The previous paragraph may sound a bit crazy, but, I am a cynic and I sort of doubt that our leaders have our best interests in mind. That is why I am open to somewhat unconventional opinions on current affairs).
In sum, with the exception of Krugman's unfair request to not cut entitlement spending and his desire to raise taxes on the middle class, I see a lot of good in his plan.
His problem with the Ryan plan was, essentially, that it only dealt with one aspect of balancing the federal budget: cutting spending. Not only does Paul Ryan want to cut spending, he wants to cut entitlement spending and that is unacceptable to Dr. Krugman (I don't see a problem with cutting entitlement spending due to the fact that our entitlements are way out of line. It just seems like Dr. Krugman is protecting himself and his fellow Boomers).
Dr. Krugman believes (and rightly so, in my opinion) that we need to raise taxes to attack the deficit and public debt problems. Specifically, he believes we should repeal the Bush tax cuts and increase the Social Security cap while cutting defense spending: according to some estimates, this program will balance the budget by 2014 and create a surplus by 2021.
I have some issues with his prescriptions, though. First, I do not agree with his assessment that defense spending should be the only target of budget cutting. Defense spending needs to be trimmed down by renting out our overseas bases, ending operations in Iraq, and finishing up in Libya immediately. But, entitlement spending needs to be dealt with as well. It is crazy to think that only our warriors need to have their funding cut while retirees and welfare recipients do not have to pitch in. That proposal is not just at all.
Second, I do not think taxes should be raised immediately (mainly because the economy is still a little wobbly and we need to secure our growth rate with consumption spending). I would prefer to see cuts in entitlement spending and defense spending first, and then an increase in taxes on the wealthy. A small increase in taxes on everyone else should be a last resort after the economy has stabilized. I believe things should go in this order because of the relative rate of return of each type of relief (as I will explain) and due to Krugman's own call for "shared sacrifice".
Entitlements produce very little long-term value for the USA (especially the way they are run now in terms of underfunding issues and excessively large benefits). In order to save Social Security, Medicare and Medicaid for the long term, it is necessary to make cuts to those programs immediately; the savings we start making now will compound over the long term, hopefully bringing the programs back to solvency. Additionally, (it may be cruel to say, but it's true) the retirees and the poor who benefit most from entitlements are essentially getting paid to NOT work. They're getting money from the government to get by, and I do not believe they should be exempt from the pain the people who are actually working feel. Entitlement recipients need to share our sacrifices, too. I propose a modest, but immediate 2% decrease in all entitlement benefits: this step will save about $45 billion every year while not crushing the indigent and elderly.
Additionally, we can look at the joke that is Medicare Part D: it is primarily an unfunded liability that was pushed through by a Republican Congressman (Billy Tauzin) who immediately resigned after Part D's passage and is now making $2 million annually working for a pharmaceutical lobbying group. The real stinker about this program is that it does not allow the federal government to negotiate drug prices with pharmaceutical companies (thanks to Tauzin) on behalf of enrollees in the program (the elderly): enrollees, and, eventually, Medicare Part D, pay about 58% more for drugs than the VA does. As of 2009, Medicare Part D received about $50 billion in revenue: only $5 billion of that came from beneficiaries. The other $45 billion came from federal and state government payments. This program stinks of government excess and pharmaceutical corporate welfare and should be shut down immediately.
Defense cuts should occur alongside entitlement cuts. Specifically, we spend $60 billion annually in Iraq and we spend an additional $42 billion by running our 662 bases around the world (not including Afghanistan). If we rent out those bases (see: http://theyoungandthescrewed.blogspot.com/p/solution-to-young-americans-current-and_23.html) we could make billions of dollars while saving $60 billion annually by stopping operations in Iraq. That is an additional $100 billion shaved off the budget.
After some substantial cuts have been made to government spending, we need to look at taxing the super-rich. I don't believe everyone knows this, but individual income after the first $106,800 is not subject to the Social Security tax of 6.2%. That cap needs to be removed. Depending on estimates, that would earn the government about $200 billion in extra revenue.
I am skeptical of Krugman's call to raise taxes on the middle class, however. This may be my conspiracy side talking, but I believe we may very well be headed for an intentionally created bout of inflation (as I said yesterday, Bernanke raised his inflation expectation to 2.8% this year, and that is probably optimistic given the awful rise in oil prices). Throwing additional tax burdens on an already cash-strapped middle class seems like a good way to run tens of millions of Americans into the ground like a certain Russian leader once proposed (see: http://www.brainyquote.com/quotes/quotes/v/vladimirle125951.html).
(The previous paragraph may sound a bit crazy, but, I am a cynic and I sort of doubt that our leaders have our best interests in mind. That is why I am open to somewhat unconventional opinions on current affairs).
In sum, with the exception of Krugman's unfair request to not cut entitlement spending and his desire to raise taxes on the middle class, I see a lot of good in his plan.
Tuesday, April 26, 2011
Few Americans Understand that Today's Public Debt Problems Started Decades Ago
I decided tonight to discuss a recent poll conducted by Rasmussen instead of stagflation and Congress. I'll save those topics for tomorrow.
Anyway, the reason I wanted to discuss the Rasmussen poll is because it shows how ignorant the voting American is in terms of government entitlements and welfare programs. Here is the link to the report: http://www.rasmussenreports.com/public_content/business/federal_budget/april_2011/just_23_realize_deficit_largely_due_to_commitments_made_in_1960s_and_70s.
As the article mentioned (and I have made similar points before) today's entitlement problems are the results of previous generations' failures. In 1965, President Johnson ordered the creation of Medicare and Medicaid to provide the poor and the elderly with funding for healthcare. Social Security, created in 1935, was created to be a safety net for poor and down-trodden individuals. These programs have been allowed to gradually evolve into monstrous, $2.7 trillion government behemoths that are crushing working and younger people while essentially making 60 million Americans dependent on the government (see: http://eaynuf.blogspot.com/2011/04/usa-today-americans-are-incredibly.html). These entitlement issues are the direct results of our predecessors' lack of leadership and wisdom.
(Note: I do believe these programs have noble goals, but they definitely need substantial restructuring in terms of benefits and funding practices).
What is irritating about our current issues is the fact that these programs have been around for a long time, but, they have not been restructured for the future. As the aforementioned article pointed out, previous generations of leaders (especially those during the late 60's and 70's) have put today's workers in a bind by miscalculating benefits for retirees and welfare recipients and doing nothing to fix those errors. Essentially, Social Security, Medicare and Medicaid have been around for about 50 years (Social Security has been around much longer than that), yet, due to the language of the laws, goals of the programs, and lack of political willpower, they have not been reformed.
The shame is that things did not need to go this far. If small, commonsense reforms (in terms of benefits reductions, age increases, etc.) had been made a few decades ago, I would probably not be writing this post.
An even more-irritating aspect of this report is the lack of understanding on the part of voting-age people. Only 23% understand the substantial destructive momentum the aforementioned entitlements have been gaining for decades. Now, those social programs are incredibly massive; their existence is placing an enormous burden on the backs of hardworking, younger Americans, and citizens do not seem to know who to blame. (It's really simple: blame and punish (financially) those who came before us and did nothing to reign in these government expenditures).
The most irritating part of all this, though, is that the same people who failed to reform these programs will be some of the last ones to benefit greatly from them. I really cannot think of a more unjust outcome.
Given the general public's ignorance and indifference, I do not see a good end to this situation. The only way things change is if people (especially us youths) get educated, angry and proactive.
Anyway, the reason I wanted to discuss the Rasmussen poll is because it shows how ignorant the voting American is in terms of government entitlements and welfare programs. Here is the link to the report: http://www.rasmussenreports.com/public_content/business/federal_budget/april_2011/just_23_realize_deficit_largely_due_to_commitments_made_in_1960s_and_70s.
As the article mentioned (and I have made similar points before) today's entitlement problems are the results of previous generations' failures. In 1965, President Johnson ordered the creation of Medicare and Medicaid to provide the poor and the elderly with funding for healthcare. Social Security, created in 1935, was created to be a safety net for poor and down-trodden individuals. These programs have been allowed to gradually evolve into monstrous, $2.7 trillion government behemoths that are crushing working and younger people while essentially making 60 million Americans dependent on the government (see: http://eaynuf.blogspot.com/2011/04/usa-today-americans-are-incredibly.html). These entitlement issues are the direct results of our predecessors' lack of leadership and wisdom.
(Note: I do believe these programs have noble goals, but they definitely need substantial restructuring in terms of benefits and funding practices).
What is irritating about our current issues is the fact that these programs have been around for a long time, but, they have not been restructured for the future. As the aforementioned article pointed out, previous generations of leaders (especially those during the late 60's and 70's) have put today's workers in a bind by miscalculating benefits for retirees and welfare recipients and doing nothing to fix those errors. Essentially, Social Security, Medicare and Medicaid have been around for about 50 years (Social Security has been around much longer than that), yet, due to the language of the laws, goals of the programs, and lack of political willpower, they have not been reformed.
The shame is that things did not need to go this far. If small, commonsense reforms (in terms of benefits reductions, age increases, etc.) had been made a few decades ago, I would probably not be writing this post.
An even more-irritating aspect of this report is the lack of understanding on the part of voting-age people. Only 23% understand the substantial destructive momentum the aforementioned entitlements have been gaining for decades. Now, those social programs are incredibly massive; their existence is placing an enormous burden on the backs of hardworking, younger Americans, and citizens do not seem to know who to blame. (It's really simple: blame and punish (financially) those who came before us and did nothing to reign in these government expenditures).
The most irritating part of all this, though, is that the same people who failed to reform these programs will be some of the last ones to benefit greatly from them. I really cannot think of a more unjust outcome.
Given the general public's ignorance and indifference, I do not see a good end to this situation. The only way things change is if people (especially us youths) get educated, angry and proactive.
Monday, April 25, 2011
Some Young People May Finally Be Getting It
Hi all,
Apologies for not posting an article yesterday. I was unable to write anything due to some brutal headaches I got (they seem to be sinus headaches that evolve into super-migraines/possible cluster headaches). Anyway, I am back to normal so let's get started.
First, I want all of you to watch this video: http://www.youtube.com/watch?v=HcW83yf0Bhg&feature=player_embedded
I understand that many of my readers are not Republicans (I am not a Republican, either) but what the individuals stated in the video about the country's back-breaking public debt is true (as I have posited numerous times on this blog) and truth is all that matters to me (and, hopefully, to you).
Now, I want you all to read this article: http://www.marketwatch.com/story/imf-bombshell-age-of-america-about-to-end-2011-04-25?link=MW_home_latest_news.
I hope that IMF announcement wakes everyone up. Our fiscal and economic problems are sizable, urgent, and the results of other persons' failures. But, our leaders do not care to fix the country's financial issues (probably because they will not be alive to feel the pain of economic stagnation and fiscal devastation).
And, so, I believe our imminent economic usurpation by China and the nation's fiscal debt problems are why we need to stand united (Democrats, Republicans, leftists, rightists, and everyone else) as a generation. We need to show our leaders that we have no interest in dealing with their screw-ups and that they will be held accountable by us youths.
This current political landscape stinks of partisanship, but, in reality our struggles are much bigger than partisan battles now. Our struggles can be summarized in one basic issue: generational warfare. Our leaders in Washington (Republicans, Democrats, Independents, and others) like power and money, and they have sold our futures to pad their pockets and increase their political strength. Our parents, grandparents, friends, and neighbors have for decades put these irresponsible rulers into powerful positions. And, now, they all want us to clean up their crap. Yeah, right.
In terms of uniting as a generation, it is fine for us all to have differences (as I have said before, differences are healthy), but we need to search for middle ground. And our middle ground, I believe, involves public debt, entitlement and education reform. Our parents and grandparents could afford the luxury of partisanship, but we do not have the same opportunity. Financially (look at our debt situation) and socially (just watch this video: http://video.foxnews.com/#/v/4661514/brutal-beating-caught-on-tape/?playlist_id=87287), this country is on the decline. And, the sooner we act, the sooner we can turn this decline into a great upswing.
So, my fellow young Americans, we have work to do; however, our situation is not hopeless. We need to toss aside our parents' partisanship, boot out the nation's failed leaders, and grab our futures. If we do these things, we will be fine. If not, our great country will fade into the dark depths of history.
Apologies for not posting an article yesterday. I was unable to write anything due to some brutal headaches I got (they seem to be sinus headaches that evolve into super-migraines/possible cluster headaches). Anyway, I am back to normal so let's get started.
First, I want all of you to watch this video: http://www.youtube.com/watch?v=HcW83yf0Bhg&feature=player_embedded
I understand that many of my readers are not Republicans (I am not a Republican, either) but what the individuals stated in the video about the country's back-breaking public debt is true (as I have posited numerous times on this blog) and truth is all that matters to me (and, hopefully, to you).
Now, I want you all to read this article: http://www.marketwatch.com/story/imf-bombshell-age-of-america-about-to-end-2011-04-25?link=MW_home_latest_news.
I hope that IMF announcement wakes everyone up. Our fiscal and economic problems are sizable, urgent, and the results of other persons' failures. But, our leaders do not care to fix the country's financial issues (probably because they will not be alive to feel the pain of economic stagnation and fiscal devastation).
And, so, I believe our imminent economic usurpation by China and the nation's fiscal debt problems are why we need to stand united (Democrats, Republicans, leftists, rightists, and everyone else) as a generation. We need to show our leaders that we have no interest in dealing with their screw-ups and that they will be held accountable by us youths.
This current political landscape stinks of partisanship, but, in reality our struggles are much bigger than partisan battles now. Our struggles can be summarized in one basic issue: generational warfare. Our leaders in Washington (Republicans, Democrats, Independents, and others) like power and money, and they have sold our futures to pad their pockets and increase their political strength. Our parents, grandparents, friends, and neighbors have for decades put these irresponsible rulers into powerful positions. And, now, they all want us to clean up their crap. Yeah, right.
In terms of uniting as a generation, it is fine for us all to have differences (as I have said before, differences are healthy), but we need to search for middle ground. And our middle ground, I believe, involves public debt, entitlement and education reform. Our parents and grandparents could afford the luxury of partisanship, but we do not have the same opportunity. Financially (look at our debt situation) and socially (just watch this video: http://video.foxnews.com/#/v/4661514/brutal-beating-caught-on-tape/?playlist_id=87287), this country is on the decline. And, the sooner we act, the sooner we can turn this decline into a great upswing.
So, my fellow young Americans, we have work to do; however, our situation is not hopeless. We need to toss aside our parents' partisanship, boot out the nation's failed leaders, and grab our futures. If we do these things, we will be fine. If not, our great country will fade into the dark depths of history.
Thursday, April 14, 2011
The Young and the Screwed: America's Youths Respond
Good evening!
Ok, this might sound like a bit of a militant post, but I am fed up with the epic failures of our elders and so-called "leaders". I really don't understand why more young people aren't calling their representatives and demanding changes. Have we as a nation become afraid of our rulers? I am pretty sure that's not how a democratic republic is supposed to work.
Anyways, I am in the process of starting a Facebook group in the hopes of uniting people. Here is the "Info" page, complete with accusations, rants, and nice graphs:
Ok, this might sound like a bit of a militant post, but I am fed up with the epic failures of our elders and so-called "leaders". I really don't understand why more young people aren't calling their representatives and demanding changes. Have we as a nation become afraid of our rulers? I am pretty sure that's not how a democratic republic is supposed to work.
Anyways, I am in the process of starting a Facebook group in the hopes of uniting people. Here is the "Info" page, complete with accusations, rants, and nice graphs:
This Facebook group is for young Americans who hate the fact that our futures are being sold by today’s politicians in exchange for campaign funding and votes from special interest groups (SIG’s). We believe these unscrupulous individuals have had enough fun, and it is time for them to pay for their fiscal and political orgies. If we sit back and do nothing, we will pay a hefty price because our leaders and their financial supporters intend to pass their bills down to us.
Let’s take a quick look at a couple problems that today’s (and yesterday’s) leaders have failed to address; as you will see, these issues will weigh heavily on our chances of living prosperous lives.
First up is the national debt. As of this post (April 14, 2011 ), our federal government has racked up an astronomical debt of $14.26 trillion (see: http://www.publicdebt.treas.gov/). This accumulation of yearly deficits is the result of decades of fiscal child abuse. For well over 50 years, our federal government has spent more than it has received in taxes (I will acknowledge that there are a few years when the government ran a surplus), thus leading to today’s huge public debt. Please take a look at the following graphs (courtesy of www.usgovernmentspending.com):
(Sorry about the grainy images. I haven't figured out how to properly put them on my blog posts).
As I stated, year after year, our rulers have demonstrated their willingness to spend more than they gathered in taxes (see: the graph on the left). As a result, our public debt (the accumulation of all of the deficits from previous years) has ballooned to horrendously large levels (see: the graph on the right). Specifically, between 1960 and today, the national debt increased from $287 billion to approximately $15 trillion! It would have been nice if the voters and politicians who came before us would have stood up and done something, but, they did not; they have instead decided to be bad citizens and pass their debts down to us.
Anyways, like all debt situations, the borrowers (our federal government agencies and “leaders” in this case) will have to repay their lenders. But, where will the borrowers get the funds to make these payments? Answer: your paychecks (through higher income tax burdens).
Now, let us turn our attention to Social Security. This year (2011) the first of the Baby Boomer generation (generally defined as those born between 1946 and 1964) will be turning 65 and retiring from their full-time occupations. That means, of course, that these individuals will begin collecting Social Security checks this year, as well.
How is this a problem for young people? Well, there are about 76 million Baby Boomers in this country (source: www.prb.org) and Social Security is not in good financial shape. According to a recent Congressional Budget Office (CBO) report (see: http://cboblog.cbo.gov/?p=1498), the Social Security Administration will be totally bankrupt by 2039 (most of us will be getting ready to retire around 2050, so we will have just missed out on getting retirement benefits).
Notice what is being asked of us here: we are supposed to pay into Social Security our whole lives in order to support our elders (the same elders who have screwed us over with poor fiscal management leading to a massive public debt that we are expected to help pay back); additionally, due to the massive number of soon-to-be retirees, our payroll taxes are likely to increase. However, shortly before we retire, the Social Security trusts we paid into our entire careers will be bankrupt. If that is not a cruel scam of the highest order, I do not know what one is.
And we are supposed to accept this arrangement while we are saddled with an average of $24,000 of student loan debt, rising health care costs, and middling job prospects (see: http://www.msnbc.msn.com/id/40772705/ns/business-cnbc_tv/). This deal sounds reasonable, right?
Wrong. Screw this. Our countrymen have sold us out, and it is time for us to fight back. These people (some of them are Boomers, legislators, special interest groups, Wall Street bankers, parents and grandparents) should be forced to face the facts: they have screwed up and we are not going to clean up their messes.
*****By the way, there are many Facebook groups whose sole purpose is to complain about the American government. This group is different: we want active participation. We want people who are ready to go toe-to-toe with the people who have tried to screw us over (previous generations of careless voters, special interest groups, and politicians). Are you too afraid to do anything about this problem? If so, then go away. If not, then join us and fight for your future today!
Wednesday, April 13, 2011
A Brief Look at Our Country's Political and Economic Problems
As promised yesterday, I am going to write about the USA's current economic and political climate and how our futures are being affected by today's issues. (This is kind of a long post, but it contains important information for all young persons).
It is no secret that it is difficult for many Americans to find jobs today. After all, the overall unemployment rate is 8.8%. However, the employment situation is much worse for young people. About 15% of us between the ages of 20 and 24 do not have jobs. Additionally, approximately 9.1% of people between 25 and 34 are unemployed. Finally, 24.5% of working-age teenagers have no job (part-time or otherwise). (To see general unemployment statistics, feel free to visit this website: http://bls.gov/news.release/pdf/empsit.pdf).
Being unemployed is not the only economic problem young Americans are facing. The average college graduate in 2009 left school with $24,000 in student loan debt. And that figure is likely to go up, given the fact that tuition is increasing 3 times faster than the rate of inflation and government grants, loans and scholarships are most likely going to shrink due to federal budget cuts.
It gets better (sarcasm).
President Obama gave a speech at George Washington University today in order to discuss his plans to decrease the federal deficit by a total of $4 trillion over the next 12 years. Some of his ideas are good (especially those involving tax reform and cuts to unnecessary programs). Other ideas are troubling.
The most troubling of Obama's proposals is the "debt failsafe" that would start in 2014. This program will make large cuts across the federal government's budget, provided the federal deficit situation has not improved (I have no idea who gets to decide whether or not the debt situation has improved). While that sounds like a good idea, there is a catch (as always): these cuts would not apply to Social Security, Medicare, and certain unlisted low-income programs.
Why is this a problem, you ask? Well, this debt failsafe would cut funding for many education initiatives (I am talking about loans, scholarships, and grants) soon-to-be college students will depend on. The most troubling aspect about this program, though, is that while young people's education funding is being slashed, older Americans and retirees will not share our pain.
And here is some more good news (that is more sarcasm, if you could not tell). Starting this year, the first of the Baby Boomer generation (a generation consisting of roughly 77 million people) will be retiring, and, therefore, collecting Social Security and Medicare benefits. For those who do not already know, Social Security and Medicare are already cash-strapped programs: according to Congressional Budget Office estimates (CBO), Social Security will be bankrupt by 2042 at the latest. So, those programs will go bankrupt just around the time we will be retiring; in other words, we will pay most of our working lives into those programs to support others, but we will probably not be able to enjoy the same retirement benefits the generations that came before us did. Does that sound like an agreeable arrangement to you?
The real question I have is this: Why are we young people expected to accept this arrangement? In essence, I believe the reason is politics. Current and soon-to-be retirees are a very large and politically active subset of the American population. In order for elected officials to maintain their offices, they have to appeal to these voters. And the best way for officials to do that is to pass resolutions that benefit those active voters.
To recap, the previous generations want us to deal with fewer programs to help us afford college (even though we need to go to college to compete in the globalized economy), accept higher Social Security burdens to fund the Baby Boomers' retirement (even though we will likely not benefit from those programs when we retire) and agree to inevitable, higher future tax rates to help pay off the nation's $15 trillion debt (a debt that we did not incur). And we are supposed to do this while we are paying off student loans, contributing to our own retirement plans, improving America's standing in the foreign community, and raising children. These messes are being passed down to us by our leaders and elders because of politics. We can do something about this, but we young people need to work together.
At the end of the day, I have decided that enough is enough. I want a new deal. And I am pretty sure you do, too.
Until tomorrow,
BB
EAYNUF Founder
It is no secret that it is difficult for many Americans to find jobs today. After all, the overall unemployment rate is 8.8%. However, the employment situation is much worse for young people. About 15% of us between the ages of 20 and 24 do not have jobs. Additionally, approximately 9.1% of people between 25 and 34 are unemployed. Finally, 24.5% of working-age teenagers have no job (part-time or otherwise). (To see general unemployment statistics, feel free to visit this website: http://bls.gov/news.release/pdf/empsit.pdf).
Being unemployed is not the only economic problem young Americans are facing. The average college graduate in 2009 left school with $24,000 in student loan debt. And that figure is likely to go up, given the fact that tuition is increasing 3 times faster than the rate of inflation and government grants, loans and scholarships are most likely going to shrink due to federal budget cuts.
It gets better (sarcasm).
President Obama gave a speech at George Washington University today in order to discuss his plans to decrease the federal deficit by a total of $4 trillion over the next 12 years. Some of his ideas are good (especially those involving tax reform and cuts to unnecessary programs). Other ideas are troubling.
The most troubling of Obama's proposals is the "debt failsafe" that would start in 2014. This program will make large cuts across the federal government's budget, provided the federal deficit situation has not improved (I have no idea who gets to decide whether or not the debt situation has improved). While that sounds like a good idea, there is a catch (as always): these cuts would not apply to Social Security, Medicare, and certain unlisted low-income programs.
Why is this a problem, you ask? Well, this debt failsafe would cut funding for many education initiatives (I am talking about loans, scholarships, and grants) soon-to-be college students will depend on. The most troubling aspect about this program, though, is that while young people's education funding is being slashed, older Americans and retirees will not share our pain.
And here is some more good news (that is more sarcasm, if you could not tell). Starting this year, the first of the Baby Boomer generation (a generation consisting of roughly 77 million people) will be retiring, and, therefore, collecting Social Security and Medicare benefits. For those who do not already know, Social Security and Medicare are already cash-strapped programs: according to Congressional Budget Office estimates (CBO), Social Security will be bankrupt by 2042 at the latest. So, those programs will go bankrupt just around the time we will be retiring; in other words, we will pay most of our working lives into those programs to support others, but we will probably not be able to enjoy the same retirement benefits the generations that came before us did. Does that sound like an agreeable arrangement to you?
The real question I have is this: Why are we young people expected to accept this arrangement? In essence, I believe the reason is politics. Current and soon-to-be retirees are a very large and politically active subset of the American population. In order for elected officials to maintain their offices, they have to appeal to these voters. And the best way for officials to do that is to pass resolutions that benefit those active voters.
To recap, the previous generations want us to deal with fewer programs to help us afford college (even though we need to go to college to compete in the globalized economy), accept higher Social Security burdens to fund the Baby Boomers' retirement (even though we will likely not benefit from those programs when we retire) and agree to inevitable, higher future tax rates to help pay off the nation's $15 trillion debt (a debt that we did not incur). And we are supposed to do this while we are paying off student loans, contributing to our own retirement plans, improving America's standing in the foreign community, and raising children. These messes are being passed down to us by our leaders and elders because of politics. We can do something about this, but we young people need to work together.
At the end of the day, I have decided that enough is enough. I want a new deal. And I am pretty sure you do, too.
Until tomorrow,
BB
EAYNUF Founder
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