Who’s ahead of or behind the curve? Europe is finding that austerity and severe cutbacks are strangling growth and thus Europe is now trending liberal while we here in the US of A are leaning more conservative and bent on austerity and cutbacks.
The problem is it’s a downward spiral. Fewer people working, less taxes, more cuts, less people working, etc. While the private sector was adding jobs the public sector was laying them off. Other, among many long-term plans going wrong is … for instance, at 70.5 people (by law) have to start taking money out of their IRAs (mostly held in mutual funds) thus a net outflow from stocks and bonds. Money sitting in bank accounts earns 1% (at best) so how can the frugal and responsible elderly make it? Anyone who thinks they can retire on Social Security is delusional. So, net-net, everyone gets poorer and poorer, and that’s without even considering the costs of long-term care which Medicare does not cover. The world model has for a couple of hundred years been based on continuous growth … more, more more, people and things. What’s needed is not austerity or spending but a new model of what prosperity is and how we will live a responsible and ecologoically sustainable future.