This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
3/02/2005
Greenspan speaks out
Alan Greenspan spoke openly about social security and Medicare this week. He urges that America get a hold of the budget as soon as possible before it is harder to correct it. He goes on to say that the baby boomers will be taking too much money to replace with the following generations. Alan Greenspan also mentions that interest rates will continue to rise, and the economy is growing at promising rates.
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2 comments:
"the baby boomers will be taking too much money to replace with the following generations."
So, what happened to the money Boomers paid? In the last thirty five years FICA tax rate and the wages that are taxed have gone up ten fold to $90,000. The maximum tax paid today is twenty times what it was thirty five years ago.
I picked thirty five years because that was when the leading edge of the Boomers was in their early twenties and beginning meaningful contributions to SS.
The entire Boomer cohort is now paying into SS. Yet somehow it's a problem that they, too will one day retire. Like nobody could see that coming.
What does this have to do with ManEc?
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