Thursday, February 13, 2014
This is taken from a paper by Brad DeLong. And what is the number one issue of our time? Income distribution. Enjoy the beach because you ain't gonna be working in the future.
But in the absence of faster economic growth than has been seen in the past two decades, the future of the social insurance state is easy to read: Medicare and Social Security devour the rest of the Great Society and the New Deal over the course of the next generation. Two generations hence Medicare and Social Security run up against their own budget constraints, and destroy themselves.