 | abichara (60)
02/21/2007 |  The next 2 years will be critical for the US economy. The big question will be the impact of entitlement spending as the baby boom generation start to retire in 2010. We're going to start seeing a lot of people collecting on social security just as they depart the workforce, potentially creating a glut in national income due to decreased tax receipts. And then you have the costs of our foreign entanglements, which are significant, and in the long run are hardly profitable for our country, both fiscally and strategically. Will the US dollar continue to lose its value against other currencies as international bankers start looking for a more stable currency. Will countries like China continue to be willing to finance our countries growth, or will they be able to continue to do so? We indeed may be in for a extended period of inflationary economics, contrary to many economists assertions that we've somehow "conquered" it. The overall economy looks okay now, but eventually events will catch up to us. The demographics, as I mentioned earlier, are difficult to deal with. The politicians won't touch Social Security with a ten-foot pole; many of the solutions they propose are either unrealistic, like Bush's privatization plan, or are just band-aid's to temporarily shore up the entitlement system.
(2 voted this helpful, 0 funny and 0 agree) |
