Young Americans Economically Smacked By All the Cans Kicked Down the Road
The New York Times‘ Thomas Friedman, who is noted for his columns on foreign affairs, penned a piece discussing a key domestic issue: How young Americans are being hurt by policies supporting older groups (hat-tip, Silvio Canto Jr.)
Eventually this shutdown crisis will end. And eventually the two parties will make another stab at a deal on taxes, investments and entitlements. But there’s one outcome from such negotiations that I can absolutely guarantee: Seniors, Wall Street and unions will all have their say and their interests protected. So the most likely result will be more tinkering around the edges, as our politicians run for the hills the minute someone accuses them of “fixing the deficit on the backs of the elderly” or creating “death panels” to sensibly allocate end-of-life health care. Could this time be different? Short of an economic meltdown, there is only one thing that might produce meaningful change: a mass movement for tax, spending and entitlement reform led by the cohort that is the least organized but will be the most affected if we don’t think long term — today’s young people.
Whether they realize it or not, they’re the ones who will really get hit by all the cans we’re kicking down the road. After we baby boomers get done retiring — at a rate of 7,000 to 11,000 a day — if current taxes and entitlement promises are not reformed, the cupboard will be largely bare for today’s Facebook generation. But what are the chances of them getting out of Facebook and into their parents’ faces — and demanding not only that the wealthy do their part but that the next generation as a whole leaves something for this one? Too bad young people aren’t paying attention. Or are they?
Wait! Who is that speaking to crowds of students at Berkeley, Stanford, Brown, U.S.C., Bowdoin, Notre Dame and N.Y.U. — urging these “future seniors” to start a movement to protect their interests? That’s Stan Druckenmiller, the legendary investor who made a fortune predicting the subprime bust, often accompanied by Geoffrey Canada, the president of the Harlem Children’s Zone, of which Druckenmiller is the biggest funder. What are they doing on a Mick Jagger-like college tour where they don’t sing, don’t dance, and just go through a set of charts showing young people how badly they’ll be hammered if our current taxes, growth rates, defense spending and entitlements stay where they are?
“My generation — we brought down the president in the ’60s because we didn’t want to go into the war against Vietnam,” Druckenmiller told an overflow crowd at Notre Dame last week. “People say young people don’t vote; young people don’t care. I’m hoping after tonight, you will care. There is a clear danger to you and your children.”