Another Liberal policy, not well thought out, is behaving like the drunk who has to walk faster and faster so that he doesn't fall over.
That borders on economics and politics...but Dr. Thomas Sowell made the point that it is based on the thought process of Liberal: good intentions.
Another case of 'feeling' passing for 'knowing.'
Liberals are impulsive, and imprudent, rushing to institute what so ever they imagine. Sowell called it 'First Stage Thinking.'
In “Applied Economics: Thinking Beyond Stage One,” Sowell challenges individuals to analyze not only their short term (Stage One) consequences, but to also think ahead to their long term (Stage Two, Three, etc) impact. Politicians do not think beyond Stage One because they will be praised (and elected) for the short term benefits but will not be held accountable much later when the long term consequences appear
The best example is Franklin Roosevelt's policy called Social Security.
1. "I was told I could expect to receive a benefit of “about $2,136 a month” upon reaching age 70 — which certainly seems like good news. But immediately I thought of a parallel of President Obama’s infamous Obamacare promise: “If you like your Social Security, you can keep your Social Security.”
2. .... the following message: The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits.
“If I like my Social Security, I can keep 77 percent of it.”
3. .... government was informing me that they will be unable to fulfill their part of a financial arrangement into which, as their statement attested, I had been making mandatory contributions....
4. This impending “benefit rationing,” ... may, in fact, not be the worst of it.... an earlier statement dated March 10, 2009. Again, followed by an asterisk was a sentence that read exactly like my 2015 statement except for two major differences ...: The law governing benefit amounts may change because, by 2041, the payroll taxes collected will be enough to pay only about 78 percent of your scheduled benefits.
a. Clearly, in 2009, the government’s prediction — that Social Security would have to be cut to 78 percent of benefits come 2041 — was overly optimistic.
5. Now, in 2015, they are projecting 2033, eight years earlier, with one percentage point less of my projected benefits. The projections have steadily worsened over the past few years, helped by a much weaker economy than the federal government expected.
6. Meanwhile, here is the truth, as stated by the Social Security Administration in its annual Trustees Report from 2014: Social Security is not sustainable over the long term at current benefit and tax rates. In 2010, the program paid more in benefits and expenses than it collected in taxes and other noninterest income, and the 2014 Trustees Report projects this pattern to continue for the next 75 years.
7. In January 2011, the first 1946-born Baby Boomers began turning age 65, at the rate of 10,000 a day. ... That adds up to just over 69 million former hipsters [by 2029].... Keep in mind that those millions of surviving Baby Boomers do not include all the immigrants, also aging, who came to America in the past decades. The official total is 74.9 million Boomers native and foreign-born.
8. ...more truth (and pain) from the Social Security Administration: The population of retirees is projected to double in about 50 years. People are also living longer, and the birth rate is low.
Social Security Bankruptcy -- The Government Knows It s Coming National Review Online
"The problem with socialism is that eventually yourun out of otherpeople's money."
Margaret Thatcher
That borders on economics and politics...but Dr. Thomas Sowell made the point that it is based on the thought process of Liberal: good intentions.
Another case of 'feeling' passing for 'knowing.'
Liberals are impulsive, and imprudent, rushing to institute what so ever they imagine. Sowell called it 'First Stage Thinking.'
In “Applied Economics: Thinking Beyond Stage One,” Sowell challenges individuals to analyze not only their short term (Stage One) consequences, but to also think ahead to their long term (Stage Two, Three, etc) impact. Politicians do not think beyond Stage One because they will be praised (and elected) for the short term benefits but will not be held accountable much later when the long term consequences appear
The best example is Franklin Roosevelt's policy called Social Security.
1. "I was told I could expect to receive a benefit of “about $2,136 a month” upon reaching age 70 — which certainly seems like good news. But immediately I thought of a parallel of President Obama’s infamous Obamacare promise: “If you like your Social Security, you can keep your Social Security.”
2. .... the following message: The law governing benefit amounts may change because, by 2033, the payroll taxes collected will be enough to pay only about 77 percent of scheduled benefits.
“If I like my Social Security, I can keep 77 percent of it.”
3. .... government was informing me that they will be unable to fulfill their part of a financial arrangement into which, as their statement attested, I had been making mandatory contributions....
4. This impending “benefit rationing,” ... may, in fact, not be the worst of it.... an earlier statement dated March 10, 2009. Again, followed by an asterisk was a sentence that read exactly like my 2015 statement except for two major differences ...: The law governing benefit amounts may change because, by 2041, the payroll taxes collected will be enough to pay only about 78 percent of your scheduled benefits.
a. Clearly, in 2009, the government’s prediction — that Social Security would have to be cut to 78 percent of benefits come 2041 — was overly optimistic.
5. Now, in 2015, they are projecting 2033, eight years earlier, with one percentage point less of my projected benefits. The projections have steadily worsened over the past few years, helped by a much weaker economy than the federal government expected.
6. Meanwhile, here is the truth, as stated by the Social Security Administration in its annual Trustees Report from 2014: Social Security is not sustainable over the long term at current benefit and tax rates. In 2010, the program paid more in benefits and expenses than it collected in taxes and other noninterest income, and the 2014 Trustees Report projects this pattern to continue for the next 75 years.
7. In January 2011, the first 1946-born Baby Boomers began turning age 65, at the rate of 10,000 a day. ... That adds up to just over 69 million former hipsters [by 2029].... Keep in mind that those millions of surviving Baby Boomers do not include all the immigrants, also aging, who came to America in the past decades. The official total is 74.9 million Boomers native and foreign-born.
8. ...more truth (and pain) from the Social Security Administration: The population of retirees is projected to double in about 50 years. People are also living longer, and the birth rate is low.
Social Security Bankruptcy -- The Government Knows It s Coming National Review Online
"The problem with socialism is that eventually yourun out of otherpeople's money."
Margaret Thatcher
