JACKSON HOLE, Wyoming, September 2, 2004 (LifeSiteNews.com) – U.S. Federal Reserve Chairman Alan Greenspan warned Friday that the country is facing a Social Security and Medicare funding crisis. Medicare spending already exceeds inputs from payroll taxes—the fund will be entirely exhausted in 15 years, by 2019. With current shortfalls in the working-age population, Social Security will be bankrupt by 2042; pension payments will exceed income by 2018. “Financing expected future shortfalls in entitlement trust funds solely through increased payroll taxes would likely exacerbate the problem of reductions in labor supply by diminishing returns to work,” Greenspan said, as reported by Reuters news. He said it would be preferable for Americans to remain in the work force longer. “Changes to the age for receiving full retirement benefits or initiatives to slow the growth of Medicare spending could affect retirement decisions, the size of the labor force and saving behavior,” he stated. This year’s annual Jackson Hole symposium of economists and financiers addresses population demographics, and specifically how the aging population will affect world economics. The population age 65 and above in the U.S. is expected to double by 2035.
No mention has been made by Greenspan of the impact of the anti-child abortion culture on decimating a generation of young people who would otherwise now be entering the work force. Despite the developing worrisome economic situation, there is still not even a mention of plans to substantially increase support for families who wish to have more children. This most logical route to increase the future worker and taxpayer base of the nation has been intensely resisted for decades by the nation’s elite decision makers. Read related coverage: https://story.news.yahoo.com/news?tmpl=story&cid=580&e=2&u=/nm/20040827/bs_nm/economy_greenspan_dc
Read related LifeSiteNews.com coverage: Low Birthrates Causing European Pension Funds to Run Out https://www.lifesitenews.com/ldn/2003/jul/03070404.html tv