Bringing America Down to Everyone Else’s Level

I saw in the paper today that Social Security is expected to go belly up three years sooner than previously expected.  Medicare will last about the same as previously calculated, even though there were cuts of two percent in benefits.  Why?  More boomers are retiring early due to the economy.  In discussing the reasons for this decrease in Social Security’s durability, the one thing nobody is mentioning is the payroll tax cut!  Why not?  Did everybody think you could just cut income, keep on spending, and NOT HAVE THE MONEY RUN OUT SOONER?!?  Remember, the “payroll tax cut” is a cut in Social Security income (F.I.C.A.).
There used to be some common sense in public discussions of issues, but, of course, THINGS HAVE CHANGED.  The Democrats and Republicans continually fight over where to cut taxes, and where to spend the money we don’t have, while ignoring consequences that we’ll have to deal with, but they may be out of office before then, so why worry?  I’m worried.
          As William Falk noted in the recent issue of The Week, private pensions began disappearing more than 30 years ago, and being replaced by 401(k) plans.  However, the average savings by Baby Boomers is only $78,000.  That’s far less than one would need, even with a pension!  And most of these are people without pensions.
Whether you support Obama or not-so-compassionate Republicans, one things is certain if we go on this way: Benefits will be cut; taxes have been cut; the deficit will balloon; and the United States will go bust like Greece.  And I don’t think Germany will bail us out.  China to the rescue!
          Here’s what I think will happen to us socially:  Three-quarters of baby boomers will be unable to afford their homes.  Their kids, already squeezed into undersized places, will be hard pressed to find a bedroom for mom and dad, justifying it by taking mom and dad’s Social Security check for room and board, and asking them to watch the kids to save on day care.  Three, even four generations will share quarters, pooling dwindling resources to provide a home for the family, as everyone scrambles to get whatever work they can so they can eat.  Forget vacations.  Forget college tuition.  Look for college loan defaults, and a further downward spiral of home values.
Some of this sound familiar?  My parents lived through it - it was called the Great Depression.
          What can you do about it?  First, urge your elected representatives to repeal the payroll tax cut, and compromise on adjustments to Social Security for the good of the country.  If small changes are made now, disaster can be avoided later.
          Second, save more money for retirement!  Even if the politicians insist on pandering to stupidity and shortsightedness, and your neighbor insists on being stupid, there is absolutely no reason, or excuse, for you being stupid.  Plan now!  Urge everyone you know to do the same.  The Republicans would let you go down the drain.  The Democrats would spend us all into the same drain.  But having money set aside will keep you from going down that drain with them.
Back in the eighties we were the “Shining City on the Hill”, and a majority of the world wanted what we have.  I said then to bring them up to a fraction of what we have would bring us down to a fraction of what we have.  We’re still headed there - in a handbasket.