More debt than anybody can handle!!!

[MasterBlaster]

The US is not in such a bad shape IMO. Specially if you remember that it gets the best interest rates in the world.

Saying that, it is nice to live in a place that actually runs budget surplus.

I'd have to agree (somewhat) with you. Right now we have a deficit that is manageable considering our economy.

The problem comes with those pesky SS and medicare promises. Those so-called unfunded liabilities cannot be met with the present system. SS by itself might be manageable with some additional taxes. But medicare just won't work as the boomers retire.

So I expect some big cuts/changes to medicare in the next decade or so. If we do that then the problem is manageable. Increased taxes alone won't solve this issue.

 

[yona]

I'd have to agree (somewhat) with you. Right now we have a deficit that is manageable considering our economy.

The problem comes with those pesky SS and medicare promises. Those so-called unfunded liabilities cannot be met with the present system. SS by itself might be manageable with some additional taxes. But medicare just won't work as the boomers retire.

So I expect some big cuts/changes to medicare in the next decade or so. If we do that then the problem is manageable. Increased taxes alone won't solve this issue.

I am not an expert on this issue as I don't live in the US, but I agree that taxes won't solve this problem. My estimation is that governments all over the world will have to increase the retirement / SS age. Even increasing the age by "just" 2-3 years will almost solve the problem.

In 1889 when Bismarck introduced the first pension plan for people reached 70, the expectancy of life for the average Prussian was 45 years

Otto von Bismarck - Wikipedia, the free encyclopedia

So now when live expectancy reached 80+, the age should be adjusted accordingly. People who want to retire earlier, should count on their own savings.