@Numonex regarding http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html
The fix for Social Security is simple.
As Social Security stands now, the upper limit contribution rate is based off of an income of around $110,000/year. Henceforth, if I am pulling in $111,000/year, $200,000/year or higher, I am paying into Social Security at the same rate as someone who is making around $110,000/year.
The fix is simple, scale with multiple tiers for those making more than the upper limit contribution rate.
Medicare is the harder fix because when it was created in the 1960s under President LBJ's 'Great Society,' the poorest people in US society were the elderly and many of them did not live past 75 years old.
40 some odd years later, the wealthiest and happiest people in US society are the elderly many of whom will make it past 80 years old.
There is no simple fix for Medicare. If anything, the most logical would be to strictly ration healthcare for the elderly. For example, bar all elective surgeries after the age of 75 and make those aged 65 and older pay for entirely, out-of-pocket, for procedures such as hip replacements.
What we have now and will continue to persist is visible intergenerational inequity where the young and working are being taxed in order to finance the retirement of their parents and grandparents. I do not think it will get so bad to the point being old is a scarlet letter begging for a public lynching, but the sense of loss in comparison to what the Baby Boomers have is depressing.
For example, when my parents got out of school in Southern California in the late 1960s and early 1970s, they had an easy time getting a job because they knew someone who knew someone, the majority of jobs did not require any certification, and college was dirt cheap in comparison to today.
Nowadays, jobs that were once secure are being outsourced to India and the Philippines such as corporate accounting, every occupation requires some sort of license or certification, and college is $20,000 on up/year to live on campus at even the most spartan and lowest rated of 4 year public universities.
If anything, I predict a taxpayer revolt where the young and working in the next decade or two will be fed up with the "well I earned it argument" from retirees and elect politicians who are deadset on keeping taxes low, cut public employee benefits, take a more what is best for the American worker is best for the US economy stance regarding Free Trade, and fundamentally reshape expectations regarding retirement.
