Health care

[Jim in CT]

Originally Posted by JohnR

Yes - lets keep filling the low wage brackets with more and more low wage earners - ya know for the jobs others don't want to do - and keep growing the bottom third of the pool. There will then always be poor to champion for. Automation and AI are going to blow the whole thing open anyway and we'll have even LESS people to tax and rerdistribute.

We are out of balance now and have been for some time, this will get drastically worse in the coming 2-3 decades (plus things like GDP/unfunded liabilities) and our kids and GKs will pay for it.

GREAT post.

The last crisis was the subprime mortgage crisis. The next crisis will be what I call the "sovereign debt" crisis. The feds and many states, thanks to the Baby Boomers aging (and living longer) are about to be up to their eyeballs in unfunded liabilities.

Here in CT, we jacked up the income tax last year, and tax revenue collected dropped like a rock (the opposite of what the Democrats said would happen). Just at the time when we need to start paying pensions to Baby Boomers. The Dems will respond, naturally, by raising taxes more, driving more people out. In the private sector, when an entity is stuck in a self-perpetuating cycle of declining revenues and increasing costs, it is called the "death spiral", and it is a perfect term for what is happening. Very tough to get out of.