If you live in a Western country that has an old age pension system, this is what you should do: Forget About It. By the time you reach pension age, it'll be long gone or reduced to such a pittance, there's really no point getting it AND you'll still have to work to pay off your house or look foward to living in a Tesla style Company Town where your housing and health insurance is tied to your employment to xyz company.
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American Economics Thread
- Thread starter Bernard
- Start date
Correct. Primarily driven by social security and Medicare expenses and from large tax cuts put into place by multiple administrations. The national debt will likely be “resolved” in the future with a number of tax hikes and benefit cuts that aren’t macroeconomically damaging but politically painfulThe US is adding US$3.6 trillion national debt this year.
For me, it is sad to see the Boeing where it is today. It used to be one of the most admired American companies when it was run by savvy engineers who built world-class, high quality aircraft that were the envy of the world and reaping the profits that followed. It was synonymous with engineering excellence and customer-driven instead of being wall street driven (still highly profitable). Instead, today we have Boeing engineers going public with their refusal to fly on Boeing aircraft. Putting profits before engineering excellence has been a compete disaster, and it took a coup by their airline customers who were losing money thanks to Boeing to force a change in management away from being driven by finance. Boeing is basically a case study in how wall street driven KPIs and financial wizardry have brought a mighty company to its knees, and done the same to many others.You're exactly wrong with America (if you're an actual American). No wonder businesses like BOEING is going through its existential crisis since its CEO and management team was spewing garbage day in and day out like yourself.
Someone says there's a problem in America, and the response is WHAT PROBLEMS, There's NO PROBLEMS!! EVERYTHING IS GREAT.
Umm no. Social security will pay out 70-80% of promised benefits, even if Congress does nothing.If you live in a Western country that has an old age pension system, this is what you should do: Forget About It. By the time you reach pension age, it'll be long gone or reduced to such a pittance, there's really no point getting it AND you'll still have to work to pay off your house or look foward to living in a Tesla style Company Town where your housing and health insurance is tied to your employment to xyz company.
There is an ongoing productivity boom in the economy which is driving gdp growth substantially ove 2% at non inflationary rates. Even housing construction is booming at 5% interest rates because households are just overflowing with endless cash to spend.
the productivity boom is driven by so many things: AI, remote work, ICT technologies (data center/cloud/etc), unsnarled supply chains, massive infrastructure and manufacturing investments, immigration/reallocation, marginally attached members of the workforce entering, within-sector shifts from low productivity to high productivity firms, and workers that used to have changed their jobs completing training and becoming substantially more productive
the productivity boom is driven by so many things: AI, remote work, ICT technologies (data center/cloud/etc), unsnarled supply chains, massive infrastructure and manufacturing investments, immigration/reallocation, marginally attached members of the workforce entering, within-sector shifts from low productivity to high productivity firms, and workers that used to have changed their jobs completing training and becoming substantially more productive
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I think the Chinese characteristic part is what confuses him, because it not about if it is communist or capitalist, it’s about what works for China. The USA might get a little bit of a handle on China if they used a more objective mind set to understand how China works but because the USA has a pathological need to judge things on a black and white, good vs bad, us vs all mind set, it all but ensures that after ten to a hundred years, the USA would always struggle to understand China and hence end up making the same mistakes time and again without any understanding as to why it’s like this. Also the more they focus on China, the less they focus on their own problems which continues to open up a whole new can of wormsNo paywall link:
Pretty honest article, reminded me of Marco Rubio's warnings about Chinese Capitalism.
America is clearly having trouble making up its mind about whether China is Capitalist or Communist.
There is a massive boom in entrepreneurship and business formation in the U.S. economy which will lead to innovation, productivity, and massive growth for years to come
The national debt has increased by US$10 billion per day.
Incorrect. US is so hooked on debt, it is literally exploding daily. Using debt to pay for debt. If it was that easy to "resolve" it, they would have done it earlier. How does one hike taxes and take away trillions worth of benefits but doesn't cause macroeconomical damage? If it's so easy, please describe how you would do it to us?The national debt will likely be “resolved” in the future with a number of tax hikes and benefit cuts that aren’t macroeconomically damaging but politically painful
The federal budget is in surplus if only defense, nondiscretionary defense (I.e., anything that is spending that isn’t the social security act) and net interest are included.Incorrect.
Because it’s politically difficult to cut spending or raise taxesUS is so hooked on debt, it is literally exploding daily. Using debt to pay for debt. If it was that easy to "resolve" it, they would have done it earlier.
Because there are diminishing marginal returns. Most econometric analysis of the TCJA have found null effects; reversing the TCJA should similarly result in null effects. Similarly for social security and Medicare - the benefits are primarily concentrated in households that have been high income for life (and thus save substantially more, even in old age). Cuttting their checks won’t cut their spending; they will just save less.How does one hike taxes and take away trillions worth of benefits but doesn't cause macroeconomical damage?
They will likely roll back the Trump tax cuts, lift the payroll tax limits to cover all wage income, cut benefits for rich people on social security and Medicare and implement a nationwide sales tax. It’s all politically unpopular so it won’t happen until 5 seconds before social security goes bankruptIf it's so easy, please describe how you would do it to us?