By Laurence J. Kotlikoff
One of Library Journal's most sensible company Books of 2004, Winner within the classification of Economics within the 2004 Professional/Scholarly Publishing Annual Awards pageant provided by means of the organization of yank Publishers, Inc. and selection awesome educational identify for 2004
In 2030, as seventy seven million child boomers hobble into previous age, walkers will outnumber strollers; there'll be two times as many retirees as there are at the present time yet in simple terms 18 percentage extra employees. How will the US deal with this demographic overload? How will Social safety and Medicare functionality with fewer operating taxpayers to aid those courses? in accordance with Laurence Kotlikoff and Scott Burns, if our govt maintains at the path it has set, we will see skyrocketing tax charges, tremendously decrease retirement and future health advantages, excessive inflation, a quickly depreciating buck, unemployment, and political instability. the govt has misplaced its compass, say Kotlikoff and Burns, and the present management is heading immediately into the arrival generational storm.
yet do not panic. to resolve an issue you want to first know it. Kotlikoff and Burns take us on a guided journey of our generational imbalance, first introducing us to the infant boomers— their lengthy retirement years and ''the protracted hold up of their departure to the following world.'' Then there is the ''fiscal baby abuse'' that would double the taxes paid through the subsequent iteration. there is additionally the ''deficit delusion'' of the under-reported nationwide debt. And none of this, they are saying, may be solved via any of the popularly touted treatments: slicing taxes, technological growth, immigration, overseas funding, or the removal of wasteful govt spending.
So how can the U.S. keep away from this demographic/fiscal collision? Kotlikoff and Burns suggest daring new regulations, together with significant reforms of Social defense, and Medicare. Their proposals are easy, easy, and geared to draw help from either political events. yet simply in case politicians will not take the political hazard to chart a brand new path, Kotlikoff and Burns additionally supply a ''life jacket''— guidance for people to guard their monetary healthiness and retirement