A Statistic that Potentially Makes Our 22 Trillion Dollar Debt Problem More Troublesome
Preparing for an Uncertain Retirement
North Dallas i March 9, 2019
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I know that this is an obscure statistic. This also applies to the world population and I have no idea how it specifically applies to the US. HOWEVER, I think that it resembles the US.
Deutsche Bank came out with this statistic using analysis of United Nations data:
As the world's population ages, many countries' birth rates are failing to keep up
There are now more people over the age of 65 than there are people under the age of 5 — a dispersion that's never occurred before, according to Deutsche Bank.
They go onto to say that "the world's population isn't getting any younger. In fact, it's getting much, much older. And that has sweeping implications for global growth, economists contend."
As we become more and more of a Global Economy, this has HUGE implications on global growth as the population gets older. From the standpoint of the US, it also has implications on the 22 trillion dollars worth of debt. The assumption would be that as people age and retire they earn less and pay less taxes. Thus there potentially exists a declining tax revenue base. Said another way, less and less will be coming into the government in the form of tax revenue to pay for government spending. Don't forget, we are borrowing approximately 45 cents of every $1 we spend.
To solve the debt problem, two things need to happen. First, more revenue needs to come into the government in the form of tax revenue, not less. Second, the politicians need to slash spending. Well, that is not going to happen. The only way to increase tax revenue is to raise taxes and dramatically overhaul the tax code so that everyone is paying their fair share. Both of those options are politically unacceptable. The irony is that the problem always comes back to the politicians who are spending way more than we have and will never make the necessary changes needed because they might eliminate their careers in politics. There in lies the problem!