This non-partisan article by Robert J. Samuelson on boomer entitlements is worthy of review. Some highlights:

In 2005, Social Security, Medicare and Medicaid cost $1.034 trillion, twice the amount of defense spending and more than two-fifths of the total federal budget. These programs are projected to equal about three-quarters of the budget by 2030, if it remains constant as a share of national income.

Preserving present retirement benefits automatically imposes huge costs on the young -- costs that are economically unsound and socially unjust. The tax increases required by 2030 could hit 50 percent, if other spending is maintained as a share of national income. Or much of the rest of government (from defense to national parks) would have to be shut down or crippled. Or budget deficits would balloon to quadruple today's level.

Think tanks endlessly publish technical reports on Social Security and Medicare, but most avoid the big issues. Are present benefits justified? How big can government become before the resulting taxes or deficits harm the economy?

Limestone Commentary
When the tax rate hits 50% I'm sitting at home on the dole. For anyone keeping score at home and measuring this against The Economics of Private Enterprise in a 12-cell Matrix entitlements would violate cells 1 and 4.

Labels: generational conflict