海角大神

I found this very niceof Simon Johnson explaining to CNN-Money鈥檚 Lex Harris why taxes will have to come up for everyone鈥搉ot just the rich. (Simon鈥檚 video was embedded in an also-nice CNN-Money column by Joe Thorndike on the topic of 鈥渇airness鈥� and taxing the rich.) Simon explains the basic math that I have emphasized over and over again here: (i) the fiscal gap is just too large to put just on the backs of (even) the rich; and (ii) yes, taxes will have to be part of the solution (no matter what you think about their role in creating the 鈥減roblem鈥�), because the spending paths are not something we could or would choose to flat-line, even as we try our best to damp them down. (BTW, I鈥檓 now reading Simon鈥檚 new book on the national debt, White House Burning (with James Kwak), which is excellent鈥損articularly in putting the current problem in historical context and making common-sense recommendations that emphasize that 鈥渇iscal sustainability鈥� depends on the paths of both the numerator of the debt and the denominator of the size of the economy.)

And what of the fact that the 鈥淛ust Raise Taxes鈥� solution is not yet gaining enough traction? Matt Miller explains the consequences in his Washington Post column:

Hear me, Americans under 35!

There鈥檚 plenty that divides the parties in this pivotal election 鈥� from taxes to drones, from public workers to private equity. But there鈥檚 one uber-policy that brings Democrats and Republicans together that doesn鈥檛 get the attention it deserves.

That policy involves you, younger Americans. You鈥檙e in big trouble. You don鈥檛 even know it. You鈥檙e busy trying to get a degree, land a job, start a family, save for a home. You don鈥檛 follow the news. But trust me 鈥� you鈥檝e been taken for a ride by your elders.

The question isn鈥檛 whether such talk will stir up generational war. That鈥檚 already being waged 鈥� and you鈥檙e losing. The question is whether you鈥檒l wake up and engage in a little generational self-defense. Let me see if I can motivate you.

How are you being swindled today? Let me count just some of the ways鈥�

There鈥檚 no cash for such investments in the future because pension and health-care programs for seniors (plus a bloated Pentagon) take up so much of the budget. At the federal level, seven dollars go to programs supporting elderly consumption for every dollar invested in people under 18. Nationally (after taking account of the fact that most education is paid for at the state and local level), the ratio is still 2 ¹ / ₂ to one.

And that鈥檚 just today鈥檚 elderly tilt. We have trillions in unfunded liabilities in these programs coming due as more and more boomers retire.

Yet amazingly, both parties would exempt every current senior from participating in the inevitable adjustments in these programs. Paul Ryan and Barack Obama lock arms in agreeing that everyone over 55 must be spared such changes, even though most of these Americans are getting back far more than they paid into the system. And millions are well-off鈥�

The solution for the young people?聽 Matt (with the help of Alan Simpson) explains you gotta fight fire with fire (emphasis added):

There are answers to these challenges that are fair to young and old alike. But we won鈥檛 hear them until younger people wake up to what鈥檚 happening.

In 1995, when I was a (younger) generational equity worrywart, I asked then-Sen. Alan Simpson how to fix what was clearly coming. Simpson told me nothing would change until someone like me could walk into his office and say, 鈥�I鈥檓 from the American Association of Young People. We have 30 million members, and we鈥檙e watching you, Simpson. You [mess with] us and we鈥檒l take you out.鈥�

Simpson was right then. He鈥檚 still right now.

All this talk about what鈥檚 鈥渇air鈥� to burden the rich with, and so little mention of our kids.聽 That鈥檚 what鈥檚 really outrageous about the partisan bickering about deficit reduction, spending cuts, and tax increases:聽 the politicians like to claim they are all about doing what鈥檚 right for our kids and grandkids鈥揵ut when you pay close attention, you see their specific actions don鈥檛 match up with their vague words.聽 I think the kids have to get more involved.聽 The so-called 鈥済rownups鈥� aren鈥檛 getting it done.