How the Budget Deficit Could Lead to Generational Warfare

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Everyone's comments generally ignore the fact that the boomers paid what the POLITICIANS told them to pay in payroll taxes. It's not like the boomers were born yesterday. The POLITICIANS have known that the baby boomers were here since the 1950s and 60s. And, yet they act like these problems suddenly appeared. It would be nice if the blame for this mess was placed where it belongs. The POLITICIANS are the ones who allowed this mess to occur. And the most recent financial mess was due to the poor leadership and oversight of the past ten years. Why do we still elect these BOZOS?

Steve of TN 5:38PM May 20, 2011

We're becoming a third world country with a first-world cost of living. We're already at a point where most jobs that don't require college degrees can't support independent living for one person, let alone a family. The Boomers have looted this country and will soon sail away on golden parachutes into luxurious retirements while the world burns thanks to their reckless mismanagement. We who are left to pick up the pieces will not remember you well.

Cato of FL 3:29AM April 21, 2011

Responding to Cliff of NY ...
(1) Public Sector cash pay (wth the exception of certain high level professions like doctor and attorneys) is higher in the Public, not the Private Sector, and Pensions and Benefits in the Public Sector are MUCH MUCH greater in EVERY position
(2) While you are correct that funding "holidays" were taken, this has NOTHING to do with the grossly excessive level of pensions (Re-Read my longer comment below), again, with 80-90% of it paid for by taxpayers (NOT the employee participants).

Tough Love of NY 6:23PM April 19, 2011

Pay for public sector personnel is less than their counterparts performing similar work, requiring similar degrees, in the private sector.
I don't speak for every municipality, but our state took a free ride on the stock market and elected to not contribute their share to the pension fund for more than a decade, as the ROI on the existing principal in the account was doing well when the rest of the economy was doing well. Just like social security, they decided to misuse those funds and now that the economy went to hell, they want to stick us with the bill... NO Way!

cliff of NY 4:21PM April 19, 2011

Forgot something in my prior comment ....
While they're voting in a new Congress and making boomers and seniors pay their fair share, hopefully they'll realize that another VERY greedy group that needs addressing are Civil Servants, particularly at the State, City, County, and Municipal levels. This is quite a greed bunch and VERY significant Pension and Benefit reductions are in order ... read on:
So let’s cut to the chase …....
Private sector employers typically contribute 3%-8% of an employee’s cash pay towards retirement, yet the total cost (expressed as a level annual % of cash pay throughout one’s career) of Public Sector Defined Benefit pensions (for a 30-year employee retiring at age 55) ranges from 29% to 58% depending on the richness of the benefit formula (with safety workers generally at the highest end).
More specifically, for the noted formulas, the level annual %s of cash pay are as follows:
2% per year of service w/o COLA – 29%
2% per year of service with COLA – 39%
3% per year of service w/o COLA – 44%
3% per year of service with COLA – 58%
Even after deducting the typical employee contribution of about 5% of pay, that still leaves the employer (meaning TAXPAYERS) contributing 24% to 53% of pay. The middle of these %s is 38.5% vs 5.5% (the middle of the range of what Private Sector employers contribute) or SEVEN (yes SEVEN) times greater.
This is completely absurd, and the very modest “tweaking” at the edges by practically begging employees for a few more percent of pay contributions will NOT even begin solve the HUGE financial problem.
TOTAL COMPENSATION (Cash Pay plus Pensions plus Benefits) should be comparable in the Public and Private Sectors for similar jobs, and with Cash Pay in the Public Sector now AT LEAST equal to (if not greater) than that in the Private Sector, there is ZERO justification for greater Public Sector Pensions and Benefits .
Not for PAST service, but for FUTURE service, Public Sector pension accruals must immediately be brought FULLY down to the level of their Private Sector counterparts. Due to the huge reduction needed, the ONLY way to do this is to freeze the current defined benefit plans for CURRENT (yes CURRENT) workers, and switch everyone into a 401K-style Defined Contribution Plan with an employer contribution in the same 3%-8% range granted Private Sector workers.
Additionally, since Private Sector retirees rarely get any retiree healthcare subsidy before eligibility for Medicare at age 65, similar restrictions should apply to Public Sector retirees.
It’s TAXPAYERS’ money and Civil Servants are NOT more worthy of bigger pensions and better benefits.

Tough Love of NY 1:52PM April 19, 2011

At some point (hopefully in the not-too-distant future) the younger generations are going to wake up, vote in a whole new Congress, and get even with the boomer pigs and the very wealthy. They will raise taxes (on the rich) and cut entitlements so the boomers retroactively pay their fair share.
With the huge cost of running a successful (classic style) campaign not likely (as the very wealthy and the senior lobby will contribute mightily to keep their supporters in power), I envision it to be an internet-based "viral" campaign by young-brilliant-fedup-activists with great street-sense and communication skills.
And we'll deserve it 100% (yes, I'm a boomer)!

Tough Love of NY 1:43PM April 19, 2011

I do not understand why the americans on Public Aid are not drug tested? We spend millions all together on taxes paying for people to live off of their state. I know plenty of people who spend as much time as possible trying to find ways to not work, and not do anything so that they can smoke marijuana and sit at home. If the states drug tested its applicants many would fail, which would result in using less of our tax money for people to be lazy. Then that tax money could be used towards our childrens education. In rockford, Il they are closing schools and building prisons. What does that tell you. Lets give our children poor educations so that we can use more of our money to pay for there food while they are in prison. ITS RIDICULOUS! Just like, how teachers when they get a job get a contract that they will have that job for life. Even if they do a poor job as a teacher. We need to fire these Bad teachers and bring in teachers who want to teach our children the future so that this country does not fail. Because it is on its way!!
The last thing is the economy is failing also. All of the illegal immigrants will work for cheap so why would any employer want to hire a legal american to work when then they have to pay taxes and pay at least minnumum wage. Obivoulsy we do not have enough boarder patrol. This is a huge Problem! why dont we start a shoot on site of illegal immigrants.. the worst punishment they get is they get sent right back and get to try again. Politicians need to start over. not make small changes along the way. just plain start over!

Brittany of IL 1:23PM April 19, 2011

My 60something parents had it all.
Solid jobs with benefits, cheap real estate.... now they have their pension plan, medicare, multiple properties they bought when they were cheap.
None of this is available to their children...my generation...the fortysomethings.
Yet my parents continue to vote republican. It wasn't until I had a near death medical problem and couldn't purchase any health insurance they started to see how jacked it is for us. And this was after they were pissed that we left California....wonder why....outrageous cost of living for a third world country.

jill of CO 1:18PM April 19, 2011

Look at what is going on in Europe with the "PIGS" That is a forshadowing of whats to come for the USA and Canada. Because of deficit spending by Governments and the people willing to vote in parties that will spend the money on what they want, we are all doomed.
The aging population, the Wall street greed machine, the lack of regulations, the government bailouts, the military spending and never ending whats in it for me mentality of tax payers has caused an irreversable financial problem that cannot be fixed.
Anyone that gets elected from here on in will not get the support they need from enough people to be able to do what is best or right going forward to fix the problem. My advise to anyone who is of sound mind is to do what you can to get your own financial house in order and do not depend on the government to bail you out in retirement or pay for your medicine.

Canadian Bob 12:23PM April 19, 2011

I've come the conclusion that most people in Congress are self serving and not honest. That also goes for most people that head the large financial services industry including the Banks, Insurance companies, Brokerage Firms, etc., the Federal Reserve System and the World Bank and the oil companies and the large health care entities.
This would include many the Presidental oppointees that deal with finances in any way shape or form.
They are unwilling to make hard choices because their pet projects/sources of multi million perks, salary bonuses, campaign funding, etc. elections, jobs would be compromised.
In the mean time, the rest of us begin to flounder as jobs are lost, and earnings and purchaseing power continue to erode along with our standards of living.
We are increasingly aware that our country has been sold down the drain in the name of votes and higher profits and the need for a global ecomony that doesn't really benefit or improve the lives of the people in the undeveloped world and adversly affects the lives every American citizen.

Madeline of ND 11:39AM April 19, 2011