Wednesday, June 29, 2011

Mish on age demographics

Mish provides a summary of recent reporting and concludes:
One of the many consequences of boomer demographics is the longer the US opus of reform of Medicare, and Social Security, the more difficult it will become because of voting demographics.
Republicans are already learning that from the negative reaction to the Ryan Plan — after they all signed onto it.

This is a plus from the MMT perpsective, since there is no reason to cut social services due to "affordability," when the only constraint is availability of real resources.

How to allocate real resources is a political decision, however, and the demographics suggest that the boomers will have the upper hand at the voting booth.

1 comment:

Calgacus said...

Yes, an aging boom, like a baby boom, is an economic plus as long as we are below full employment. Putting off "reform" aka destruction of Medicare and SS is very good. Would have been a lot better off if we had never "saved" SS in the 80s.