Wednesday, March 31, 2010
...and that is why the United States will remain a powerful economic force in 2050.
Unless, of course, we go out of our way to destroy our economy by mimicking the policies that have slashed birth rates elsewhere.
I find the curve for Europe hard to believe, considering the constant flow of immigrants, most of whom are young and soon settle down to rear families.
Certainly the population of Britain is rising.
And if there is really ba shortage of skilled workers, the retirement age can be raised to 70. 65 is very early to retire nowadays, and there is a whole new generation of non-smokers approaching that age.
I think it's strange that conservatives can consider Social Security to be a Ponzi scheme, while at the same time deny that the strategy of having more young people than old people is also a Ponzi scheme.
"consider Social Security to be a Ponzi scheme"
SS needn't be, but it started with Ponzi-ish favorable demographics. That made it easy for FDR to sell it back in the 1930s. The favorable demographics have reversed -- we can't ignore this -- it's ineluctable.
That said, we can afford SS. What we can't afford are open-ended Healthcare entitlements.
To pass Constitutional muster back in the 1930s, SS was drafted to come under Congress's taxation power -- it was expressly argued to the Supreme Court at the time that SS wasn't a funded insurance program and that beneficiaries had no vested rights.
We may revisit this point in the context of challenges over the individual mandate in Obamacare. Read against this precedent, the Individual Mandate has to be called a tax to pass Constitutional muster. Thus, there's a reason the Individual Mandate was drafted as an amendment to the Internal Revenue Code. Former Constitutional Law Professor Obama should know this: If it ain't a tax, it ain't Constitutional.
"strategy of having more young people than old people is also a Ponzi scheme"
I don't know that "strategy" fits with how we manufacture babies -- at least not in the Free World.
My Dad was #15 of 15. My Mom was #2 of 5. They had four kids. I have two. That's been happening all over the World, when there's been economic progress. Brian, reread that last sentence slowly.