BU Professor Larry Kotlikoff minces no words in this Bloomberg article:
Poor Kid on the Block Gets Fleeced by the Elderly
Basically he’s saying that prior generations are sucking up enormous resources for social security, Medicare etc and that the high tax/cost burden is keeping the younger folks from saving. See his math in the article on the national savings rate and tell me what you think. For a more immediate effect, I can think of GM, as previous generations negotiated for pension and health benefits that the current generation could never hope to pay for, sinking the company if not for government bailing them out (more theft from the young as Kotlikoff would say since the government borrowed all the money used in various bailouts). I’d like to hear what you think of all this – feel free to comment/discuss…
