Though not acknowledged by government statistics or the press, the greatest wealth transfer in history has been ongoing here in the U.S. for many years. I am speaking of the wealth transfer from young American workers to the retired ones. Yes, the greatest generation was instrumental in defeating the Axis powers in World War II, and for that they are to be commended. Yet they also are the recipients of massive U.S. Treasury largess they voted themselves since that war, all to be paid by subsequent generations through confiscatory taxation and debt.
The recently retired baby boomers will likely be the last group to enjoy the benefits of this inter-generational transfer (or theft if you will). When our ability to borrow our way to prosperity ends, and it will, the younger workers will be forced to pay a crushing tax burden, and will resent it. This will lead to massive social unrest, a thriving underground economy to escape the taxes, and possibly violence toward those perceived as responsible for their plight.
The same retired generation(s) has borrowed many trillions of dollars that future generations will be forced to pay off, all the while using these borrowed funds to drive up the price of virtually every asset class. So, not only will younger workers be saddled with the bill, they won’t be able to afford the very wealth producing assets needed to help their cause in the first place.
The Ponzi schemes called Social Security, Medicare, etc., are all doomed to collapse under the weight of too many recipients and too few workers. Coupled with outrageous pensions paid to all levels of governmental retirees, our fantasy of unlimited warfare without consequences, an out of control health care system, and you have a toxic mix that those tasked with paying for will eventually rebel against.
And who could blame them.
Michael H. Bond
Snohomish
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