I know our elected representatives are all busy for awhile, playing golf and sunning at the beach. But when they come back, do you think they should consider the following (from a Merrill Lynch research report)?

Almost 42 percent federal spending last year was for Social Security, unemployment payments, Medicare, Medicaid and other healthcare expenditures. The 85 year old-plus population was 5.5 million, almost doubled since 1990. This category is expected to grow dramatically over the next twenty years. Current Census data puts the number of people in the 55 to 69 year age category at 51 million by 2021. The dramatic growth in this age category will put upward demands on entitlements, adding to the growing expenditures resulting from the double-digit inflation of medical costs. Only 24 percent of the country's residents are 18 and under. This is the generation who will have to finance the escalating entitlement expenditures. Almost certainly the tax burden on these income producers will have to increase.

What will the soon-to-be-known "gang of twelve" be waiting for? Is there any amount of ideological posturing and arguing that would make sense given this short-term outlook? Or will our Congress run us off the cliff to another downgrade to AA, as S&P has warned?

Originally Posted by Villages Kahuna

I know our elected representatives are all busy for awhile, playing golf and sunning at the beach. But when they come back, do you think they should consider the following (from a Merrill Lynch research report)?

Almost 42 percent federal spending last year was for Social Security, unemployment payments, Medicare, Medicaid and other healthcare expenditures. The 85 year old-plus population was 5.5 million, almost doubled since 1990. This category is expected to grow dramatically over the next twenty years. Current Census data puts the number of people in the 55 to 69 year age category at 51 million by 2021. The dramatic growth in this age category will put upward demands on entitlements, adding to the growing expenditures resulting from the double-digit inflation of medical costs. Only 24 percent of the country's residents are 18 and under. This is the generation who will have to finance the escalating entitlement expenditures. Almost certainly the tax burden on these income producers will have to increase.

What will the soon-to-be-known "gang of twelve" be waiting for? Is there any amount of ideological posturing and arguing that would make sense given this short-term outlook? Or will our Congress run us off the cliff to another downgrade to AA, as S&P has warned?

Well, I would guess they're kicking this can down the road until after the next national elections, at least. As politicians are usually publicly punished for putting a lid on the "candy jar", I don't know who will, or when they will, decide to step up and declare themselves in favor of cutting "entitlements". It's got to happen, but who will be brave enough.

It makes you realize with awe, the bravery of our founding fathers in challenging the status quo of their time. They knowingly put their lives at risk, and our representatives shirk from putting their jobs at risk.

I agree. It is going to happen. The question is "when?" My husband was astounded this weekend after a trip home to the mountains in Virginia to visit my nearly 92 year old father. My uncle, who lives next door to my dad, is 91. We were talking about all of their friends who are still living and all are in their late-80s early 90s.

The age of so many of the men and women in that one little area amazed my husband. The other thing besides age they had in common was their independence. Both physically and financially. Not all, but the large majority, don't depend on their SS for their main source of income.

When you talk to them, which I have; they want SS preserved in some shape or fashion for the "younger" people who they know weren't as wise as they were in their savings. LOL

Originally Posted by RichieLion

It makes you realize with awe, the bravery of our founding fathers in challenging the status quo of their time. They knowingly put their lives at risk, and our representatives shirk from putting their jobs at risk.

I like that. You can learn so much from the brave and knowing people from long ago.

I found the results of a CNN poll released today to be very interesting. (http://politicalticker.blogs.cnn.com...uts/?hpt=hp_t2) Some of the results:

63% favor higher taxes on the business and higher income Americans
57% favor spending cuts on gov't programs
53% favor no MAJOR cuts to military
64% favor no MAJOR changes to SS or Medicare
87% favor no increases in taxes to the lower income or middle class Americans

The details of the poll are predictable along party lines but the impact of the Independents is interesting. It seems neither political party has a grasp of what the majority of Americans desire in this issue.

At any rate I do not have much faith in anyone in Washington to do what is right for the Country first, but I will try to be somewhat optimistic for now.

Originally Posted by RichieLion

...It makes you realize with awe, the bravery of our founding fathers in challenging the status quo of their time. They knowingly put their lives at risk, and our representatives shirk from putting their jobs at risk.

That's a great observation that's so easy to forget, Richie. Our founders were willing to die for the principles they held dear. All these yo-yo's we have in Congress now are worried about is winning the next election so they can keep the gravy train of contributions, golf vacations, "fact finding" trips to nice foreign countries going!

Originally Posted by spk7951

I found the results of a CNN poll released today to be very interesting. (http://politicalticker.blogs.cnn.com...uts/?hpt=hp_t2) Some of the results:

63% favor higher taxes on the business and higher income Americans
57% favor spending cuts on gov't programs
53% favor no MAJOR cuts to military
64% favor no MAJOR changes to SS or Medicare
87% favor no increases in taxes to the lower income or middle class Americans

The details of the poll are predictable along party lines but the impact of the Independents is interesting. It seems neither political party has a grasp of what the majority of Americans desire in this issue.

At any rate I do not have much faith in anyone in Washington to do what is right for the Country first, but I will try to be somewhat optimistic for now.

We may get a lot of this, but we'll be very disppointed on this one! Without cuts to the entitlements fixing our fiscal problem is impossible.