Robert J. Samuelson: "The social and economic reasons for Generation Squeezed"

"I worry about the future — not mine but that of my three children, all in their 20s.

It is an axiom of American folklore
that every generation should live better than its predecessors.

The young (and I draw the line at 40 and under)
face two threats to their living standards.

The first is the adverse effect of the Great Recession on jobs and wages.

Even if this fades with time, there’s the second threat:
the costs of an aging America.

It’s not just Social Security, Medicare and Medicaid
— huge transfers from the young to the old
— but also deferred maintenance on roads, bridges, water systems and power grids.

...From 2007 to 2011, “real” (inflation-adjusted) wages
fell nearly 5 percent for recent college graduates
and 10 percent for recent high-school graduates...

...Among college grads,
only four in 10 said their jobs required a four-year degree...

...Gains in productivity — from new technologies or better skills
— that would normally flow into paychecks
will be siphoned off to pay for retiree benefits,
underfunded state and local government pensions and infrastructure repair.

Taxes will rise; if not, public services will fall.

Or both.

...The ratio of workers to retirees, 5-to-1 in 1960 and 3-to-1 in 2010,
is projected at nearly 2-to-1 by 2025.

...Sooner or later, the system’s oppressive costs will become so obvious
that future benefits will be curbed.

Chances are the young will still pay for today’s elderly
without themselves receiving comparable support.

...To aid the young, we could tighten Social Security and Medicare,
raising eligibility ages and reducing payouts for wealthier retirees.

Unlikely.

Younger voters seem clueless about advancing their economic interests.

...There are real conflicts between the young and old; so far,
the young are losing."

Robert J. Samuelson