My very first attempt of this blog is to look into 2008 deficit and try to seak a way to cut the growing deficit in next fiscal year. I started with learning the concept of deficit. To my surprise, deficit is much more complicated than I expected. Basically, budget deficit consists with structural and cyclical components. While researching the topic, I found that many pundits mentioned the expense on health care would soar because of the retirement of baby boomers. However, after I looked into the issue, I found that it is a problem but not a cause for this year's deficit and will not really be a problem for 2009 fiscal year, not even 2010!
In 2008, the first wave of baby boomers becomes eligible to social security benefits if they choose to retire at age 62. However, they will not be eligible to medicare until their 65(also after retirement), which is year 2011. Since deficit is always discussed within a year, it's possible that if U.S. can overcome financial crisis by the time then a back of economy growth will relief the pressure caused by health care. Also, the baby boomers are not likely to retire early due to the current bad economic situation.
Favorite blog posts, September 2024
2 weeks ago
6 comments:
I didn't realize that deficit was such a complex issue either. If we are having the problems we are having now I shudder to think about what will happen once the baby boomers become eligible for medicare. What ways did you find to cut the deficit?
If it looks like the baby boomers might not have medicare and social security then it probably means young adults and college students won't be able to retire til after 65. What do you think?
It is funny when I read "for those who choose to retire at 62." My parents aren't in a financial situation where they will probably ever be able to retire but I am sure if they had the choice they would. No longer is the work day 9 to 5, no longer the work week only 5 days, and no longer will we be able to retire when we should be able to. This just seems awful depressing.
reply volt-air:
At first, Obama's Iraq plan, 16 months withdraw troops, gives me hope but after reading "What about Afghanistan" I realized maybe I shouldn't count on a reduction on expenditures in war. One thing I have faith in is economy recovery. I believe in US' economy strength and a better economy situation will definitely relief the problem. For others, I'm not sure yet. Improvement in computer system of health care will reduce the cost in long run.
reply son of ander:
Baby boomers have already paid for their medicare and social security. The retirement age might be delayed officially and baby boomers might have to work longer than they planed due to financial pressure.
Now I'm wondering what will happen if government is not able pay medicare and social security benifits. Will government openly asks baby boomers to work longer? Or carry out some policies that encourage them to retire later?
Post a Comment