The US government has a habit of making poor economic policy decisions and then kicking the proverbial can down the road when it comes to paying for or dealing with the consequences of those policies. Here are four crises waiting to wreak havoc on the US economy if something isn’t done to advert them soon.
1. Baby Boomer Retirement
While it is still unknown exactly how the Affordable Care Act will effect Medicare, one thing is certain: the retirement of the Baby Boomers is expected to put a major strain on it. Major concerns over the long term sustainability of the Social Security Income program are also increasing as more and more Americans retire. Many are predicting the complete collapse of both programs.
Right now Baby Boomers make up around 25% of the US population. That means a significant amount of the US labor force is in the process of or about to retire. While immigration helps to mitigate this, the long term results will be less production and less tax revenue, further jeopardizing a heavily subsidized entitlements system.