Three reasons young Americans should care about the fiscal cliff debate

As Democrats and Republicans bargain over how to address the “fiscal cliff,” young people stand to lose a lot more in the outcome than just a negligible decrease in student loan interest rates and the right to stay on their parents’ health insurance well into their adulthood (both staples of President Obama’s 2012 campaign appeal to college students and recent graduates).

Despite the fact that young people overwhelmingly supported President Obama in 2012, most were probably unaware that they did so against their own long-term self-interest.

Here are three reasons young Americans should be watching the fiscal debate closely:

 

1. Failure to Reform Entitlement Programs Disproportionately Hurts Younger Americans

Although more than half of federal spending in 2012 will go to supporting entitlement programs, Democrats have effectively taken Social Security reform entirely off the table in the fiscal cliff debate. (They claim they will take up the issue at an unspecified time in the future. Yeah, right.)

The 2012 annual report of the Social Security Board of Trustees revealed that under current conditions, the Social Security Trust Fund will be exhausted in 2033, at which time expected revenues will only be able to fund about 75 percent of scheduled payments.

That means if you’re 18-29 years old today (and retiring between 2049 and 2060), you will pay hundreds of thousands of dollars in Social Security taxes over the course of your lifetime and receive less than your contribution in benefits – a negative return on investment!  You’re better of taking your chances in the stock market.

On the other hand, current retirees and baby boomers will receive full benefits paid for by current workers, aka you. Forget shifting wealth from rich to poor; our entitlement programs are really no more than a massive redistribution of wealth from young to old.

 

2. Young Americans Will Be Stuck With the Current National Debt

The President has cleverly shaped the entire deficit debate in terms of raising taxes on the “wealthy,” despite the fact that repealing the Bush tax cuts for top-earners is only expected to raise about $80 billion in 2013 against a current annual deficit of more than $1 trillion.

In order to eventually pay-off the $16.3 trillion national debt while also maintaining spending at levels President Obama and other liberals prefer, taxes will ultimately need to be raised much higher on everyone, not just the reviled “1%.”

Howard Dean admitted this well-concealed fact on MSNBC this week. The non-partisan Government Accountability Office also stated it bluntly in a report released this week: “the federal government is on an unsustainable long-term fiscal path.”

Either federal spending needs to be reduced dramatically or younger Americans of all income levels will ultimately be stuck with the higher taxes necessary to pay down the debt.

Most people would be angry at their parents if they left them with $50,000 in debt to selfishly pay for their own lavish lifestyle, so it’s a wonder that more people don’t get upset with the Federal government for doing the same thing.

 

3. The Youth Unemployment Rate is 50 Percent Higher Than The Overall Unemployment Rate

Youth unemployment (ages 18-29) is currently around 12 percent, while overall unemployment is around 8 percent.  The President has yet to explain how repealing the Bush tax cuts for the wealthy will help the economy or create jobs for young Americans.

To the contrary, in 2009 Obama suggested (correctly) that raising taxes on anyone during a weak economy was bad economic policy.  Britain’s 2010 tax hike on the wealthy also demonstrated the tendency of higher top-marginal tax rates to slow economic growth and hurt job creation.

If the economy faces another downturn, younger, inexperienced workers will be the first to be laid-off, and jobs will be even harder to come by for recent graduates.

Young Americans have more to lose in the outcome of the fiscal cliff debate than just about any other group.

Comments

Leave a Reply

Maher tells PC liberals 'shut the f up'

Bill Maher's politics are not always the greatest. But when it comes to knocking down the liberal PC brigade, he is on point like no other.

SNL parodies Starbucks' race campaign

What if another company--say, Pep Boys (or Girls! Or Whatever!)--took on their own campaign to talk about gender and sexual identity?

SNL's "The Rock" Obama goes beast-mode

Dwayne Johnson hosted SNL last night, so naturally he had to play a muscled-up Obama, who can finally do all the things he really wants—like throw John Boehner through a window and rip of Tom Cotton’s hand.

Devo does not want Scalise to 'Whip It'
A founding member of the 1980s band Devo really does not want to see House Majority Whip Steve Scalise “Whip It Good.” Scalise has been using the bands hit song “Whip It” at events and his staff recently created a joint fundraising committee with Rep. Patrick McHenry (R-N.C.) to raise money for a 1980s-themed birthday party […]
Jon Stewart rips Democrats for race-bait

“Oh, for f---s sake.”

White House

Carly Fiorina says there’s a ‘higher than 90 percent chance’ she’s running for president

Carly Fiorina’s 2016 campaign is all but certain now—and she’s making no secret as to whom she’ll be targeting.

White House promises not to use legal loophole to keep NSA spying alive if Patriot Act expires
If the Patriot Act expires, it will stop the National Security Agency’s bulk spying too. The Obama administration promised this week that it will not take advantage of a legal loophole to keep the NSA spying alive unless Congress re-authorizes the Patriot Act, Reuters reported. Section 215 of the Patriot Act, which authorizes the NSA to collect data on […]
In honor of National Puppy Day, here are the top 10 cutest presidential puppies

Today is National Puppy Day! To celebrate, we give you the top ten cutest puppies to grace the White House Lawn.

Obama: ‘By hook or by crook’ I’ll push my agenda through
This is probably not the smartest phrasing to use. President Obama had an interview with Huffington Post over the weekend and while much of the interview was his oft-repeated lines about how Republicans are the reason nothing is getting done in Washington, he added a new phrase about his legacy that is bound to raise […]
Obama tells Prince Charles that Americans like the royal family better than their own politicians

President Obama has admitted what we all already knew: Americans far prefer the Duchess of Cambridge to Michelle.

Congress

Sen. Harry Reid will not seek re-election
WASHINGTON (AP) — Senate Democratic Leader Harry Reid, the wily Nevadan who dominated the Senate for a decade from the minority to the majority and back again, announced Friday he will retire after five terms. Reid, 75, who shepherded key Obama administration initiatives including the president’s health care law, lost his role as majority leader — […]
Schock: Lincoln faced challenges too
Embattled Rep. Aaron Schock (R- Ill.) gave his farewell speech on the House floor Thursday, promising that it was “not the end of a story, but rather the beginning of a new chapter.” While his own trials are more of the “Downton Abbey” decor and Katy Perry concert variety, Schock likened this tough time to that […]
Boehner, Pelosi read mean tweets
Taking a cue from Jimmy Kimmel’s famous “Mean Tweets” series, House Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.), Sen Bernie Sanders (I-Vt.) and House Majority Leader Kevin McCarthy (R-Calif.) got in on the fun and read some mean tweets about themselves in a video for the 2015 Radio & Television Correspondents Association […]
GOP blocks Warren's student loan plan
THE HILL — Senate Republicans on Wednesday blocked an effort by Sen. Elizabeth Warren (D-Mass.) to attach an amendment aimed at lowering student loan rates to the budget. Senators voted 46-53 against Warren’s amendment to the Republican budget resolution. Warren’s amendment would have allowed people with college loan debt to refinance at interest rates from […]
Rand really liked those 'Stand with Rand' trolls

During Ted Cruz's big announcement at Liberty University yesterday--which students were required to attend--some Rand Paul supporters decided to troll Cruz with some "Stand with Rand" shirts: