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I just do not get it. Why don't they incentivize employers to bring jobs back to the U.S? Do they plan to extend unemployment benefits indefinitely? What does "jobless recovery" mean? They need to leave Medicare and Social Security alone; working people contribute to that. Self interest may benefit a few, but in the end, it will destroy this country.
The problem with social security and medicare is that they are eventually going to start running massive deficits. At this point, we CANNOT borrow to pay these liabilities. Of course, social security and medicare are relatively easy to fix: increase payroll tax and make other minor reforms to how the benefits are paid out.
The things that would incentivize employers to bring jobs back would also alienate our trading partners and distort prices in the free market. Our trading partners would surely retaliate. We'd have a whole new set of problems on our hands in no time. It's called protectionism and it's counterproductive, ultimately.
Didn't we learn anything from our credit downgrade? Stimulus is the wrong direction to go at this time no matter what is happening in the economy. What happens if there is another stimulus, our deficits increase again and S&P may downgrade our rating another notch! This means even higher interest payments which increases the deficit again..a vicious cycle. Are our leaders in the right mind? It seems to me that the Obama-Bernanke just wants to throw loads of money at the problem and are praying something sticks. Is this the way to solve our problems?
Its pretty funny listening to these liberal economists on NPR. They all have these big dreams about how we need this or that stimulus plan and everything will be solved. Meanwhile, investors are panicked about the rising debt to gdp ratio of the us government......
At the very least we need to stop spending and we definitely need to start moving fast towards balancing the budget. Won't be easy but we have no options left at this point. Any politician who isn't talking about moving towards a balanced budget is very far disconnected from the true potential the rising debt to gdp raito will have on this country over the long term. Forget stimulus, forget jobs. The most important thing is balanced budget. Once that happens the us will regain its AAA score.
Its pretty funny listening to these liberal economists on NPR. They all have these big dreams about how we need this or that stimulus plan and everything will be solved. Meanwhile, investors are panicked about the rising debt to gdp ratio of the us government......
At the very least we need to stop spending and we definitely need to start moving fast towards balancing the budget. Won't be easy but we have no options left at this point. Any politician who isn't talking about moving towards a balanced budget is very far disconnected from the true potential the rising debt to gdp raito will have on this country over the long term. Forget stimulus, forget jobs. The most important thing is balanced budget. Once that happens the us will regain its AAA score.
While jobs are important. The AAA credit rating and a balanced budget is farrrr more important. If the budget is not balanced and the USA gets rated even lower then EVENTUALLY it will translate into higher interest rates. If that happens, its basically the end of the USA as we know it (as a financial super power).
The problem with social security and medicare is that they are eventually going to start running massive deficits. At this point, we CANNOT borrow to pay these liabilities. Of course, social security and medicare are relatively easy to fix: increase payroll tax and make other minor reforms to how the benefits are paid out.
it's ridiculous how easy it is to fix. with social security, the retirement age is never considered. in the original design, life expectancy was only shortly more than retirement age. now, it's a 15-20-25 year gap, depending on the age of the person we are talking about and the sex.
and, what's the logic behind capping SS tax at a certain income? i just don't get that really. I'm not really for "means testing" because i think that changes what social security is. it's a basic retirement account funding basic needs in retirement for a short period of time. it's not a government pension that you should be able to live comfortably through 20-30 years of retirement. and, if you means test it, it turns it moreso into a welfare program instead of a simple basic retirement expectation.
as for medicare, it's a bit more complex, but also not as complicated as some like to make it sound.
i'm convinced they don't fix it (both sides) because it's a great campaign talking point and once they actually do something, what will they campaign on?
it's ridiculous how easy it is to fix. with social security, the retirement age is never considered. in the original design, life expectancy was only shortly more than retirement age. now, it's a 15-20-25 year gap, depending on the age of the person we are talking about and the sex.
and, what's the logic behind capping SS tax at a certain income? i just don't get that really. I'm not really for "means testing" because i think that changes what social security is. it's a basic retirement account funding basic needs in retirement for a short period of time. it's not a government pension that you should be able to live comfortably through 20-30 years of retirement. and, if you means test it, it turns it moreso into a welfare program instead of a simple basic retirement expectation.
as for medicare, it's a bit more complex, but also not as complicated as some like to make it sound.
i'm convinced they don't fix it (both sides) because it's a great campaign talking point and once they actually do something, what will they campaign on?
Hi bradykp,
Of course its easy to fix . All they had to do was fix the retirement age according to the demographic to insure a sustainable worker/retiree ratio like 5 to 1. Thus the age would float rather than the worker/retiree ratio. However that is not the kind of math people like aka word problems that take things in the real world into account.
Of course its easy to fix . All they had to do was fix the retirement age according to the demographic to insure a sustainable worker/retiree ratio like 5 to 1. Thus the age would float rather than the worker/retiree ratio. However that is not the kind of math people like aka word problems that take things in the real world into account.
haha. good points! either the age or the amount paid should be somewhat tied to the demographic as you said. not a bad idea.
The things that would incentivize employers to bring jobs back would also alienate our trading partners and distort prices in the free market. Our trading partners would surely retaliate. We'd have a whole new set of problems on our hands in no time. It's called protectionism and it's counterproductive, ultimately.
With a trade imbalance of $50-$60 billion per month, and only $20 billion or so of that oil, I don't really think we would be in that much of a world of hurt. So what if our trading partners got pissed? They (China mostly @ $22 billion deficit alone out of the $30-40 billion remainder not including oil) are sucking us dry. F-em.
The early 2000's was the beginning of a huge outsourcing wave in the US. Lots and lots of goods were transferred out of the US to China or Taiwan, however the economy was kept going by housing which imploded. Now we don't have manufacturing jobs AND housing jobs, a perfect storm.
For those who think reduced taxes are what drive growth, look to other large countries (Canada) which have higher taxes but have good (relative to ours) economies right now. Taxes alone don't make or break it, and cutting taxes really will impact the rich the most, who hoard their money and don't spend it. That does nothing for the economy.
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