The Fiscal Shape Of Things To Come
How long before 20-somethings in the USA are working extra hours to fund Granny's upkeep? From the Sydney Morning Herald:
GERMANY is proposing to levy extra taxes on the young to pay for the costs of the country's growing numbers of old people, under government plans for a ''demographic reserve'' levy.Angela Merkel's Christian Democrats have drafted proposals that, if law, would require all those over 25 to pay a proportion of their income to cushion Germany against a looming population crisis.
The German Chancellor's ruling party is seeking extra sources of revenue to pay for soaring pensions and bills for social care costs as Germany's ''baby boomer'' generation ages amid a decline in the birth rate.
via @PaulHsieh
Only 80 years ago, parents induced their children to support them and the farm by transferring ownership at the end.
Now, society makes the same promise, but includes a mortgage of 1.5 times the value of the farm. Who thinks that is going to work out for anyone?
It especially won't work for the seniors. What sympathy will they get when the younger generations realize that those seniors have thought only of themselves, saving nothing for their retirement, but expecting the young to support them in the syle which they had imagined. You don't offer support to people who are trying to scam you.
There are many examples of societies breaking down when they try this trick. All of the current socialist ones come to mind, and one famous one in America.
The Pilgrims of 1620 tried the socialist experiment. They had every reason to be a cohesive, cooperative group. They almost starved under their communal system, but changed it to survive, then prosper.
Pilgrim's Progress (Click, then see the link at the upper right)
Andrew_M_Garland at April 7, 2012 1:19 PM
Evil.
Feebie at April 7, 2012 8:51 PM
This will not end well. This will give young people FOCUS. The young will focus on who is taking their money and will want to take down those who are doing it. Even worse since the young are the minority, the vote option goes out the window so alternatives will used. Opting out, moving away, or worse violence which can lead to revolution.
John Paulson at April 8, 2012 10:40 AM
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