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The problem is that a large number of unfunded obligations will probably come due at roughly the same time. We all know that our infrastructure is starting to c
by village-idiot 8y ago
The problem is that a large number of unfunded obligations will probably come due at roughly the same time. We all know that our infrastructure is starting to crumble, but the problem is that every single bridge that needs to be rebuilt either represents a future debt to fund the construction, or a willingness to abandon the economic activity that the infrastructure (hopefully) enables.
The worst case scenarios is that Social Security, Medicare, some state pensions, and our infrastructure will all hit the breaking point at once. At that point we will need to make some deeply unpopular changes, and it's unclear if our political system has the will or the coherence to pull it off.
If we're lucky, these systems will begin failing sequentially within the next few years, rather than all failing together.
- toomuchtodo 8y agoIf we're lucky, failures will compel voters and politicians to raise taxes to pay up and stop kicking the can.
- village-idiot 8y agoI think we’re past that point. We can and should raise taxes, but reductions in expenditures is going to have to be on the table too. Our expensive wars come to mind.
- toomuchtodo 8y agoAgree, it's going to require regime change.
- village-idiot 8y agoI genuinely doubt we have the political will to do it. There are a large cohort of people who know they’ll be dead before these issues come to a head, and they have reverted to a “protect what’s mine” mode.
- swarnie_ 8y ago> raise taxes to pay up and stop kicking the can Does the US have the same old vs. young divide in politics as seen in Western Europe? A policy change asking the young to pay even more for the older generations who arguable had it better/easier would not be an easy thing to pass in France, Germany or the UK.
- toomuchtodo 8y agoWe do.