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Three Disturbing Economic Trends to Watch -2013
We may have rang in the new year with wall-to-wall "fiscal cliff" coverage, but when it comes to the major economic news of 2013, some of the most profound stories are at risk of going unnoticed says Paul Brandus, founder of the West Wing Reports and columnist at The Week.
In a recent article, Brandus highlights 5 trends "we should focus on more (but sadly won't) in 2013."
He joins The Daily Ticker's new co-host Lauren Lyster in the accompanying interview to discuss three of his five "disturbing" trends for 2013.
1. We're headed to the poorhouse
According to reports, 75% of Americans have only $30,000 saved for retirement, a reminder of the country’s bleak personal savings level.
And that’s not all.
Social Security may be up for reform (though President Obama decided not to raise the eligibility age in the fiscal cliff deal), a further reminder that the nation’s unfunded liabilities remain at the forefront of a fiscal balancing act that isn’t going to magically straighten itself out.
And pensions, which in the old days rounded out a three-legged stool of retirement, are disappearing.
This may not amount to front-page news but it is nonetheless a potential disaster for retirees.
“I think it’s going to come to a head in the next couple of years,” Brandus says. “Those three things put together really pose challenging times for folks not just nearing retirement but for younger people as well who have, perhaps, doubt about whether they’ll have any of those things when their turn to retire comes along.”
And while the retirement stool teeters, forcing Americans to lean more on their personal savings, the policies in place encourage spending and growth at the expense of savings. Brandus concedes that this balancing act between savings and low-interest rates is a tricky problem with no simple answer.
2. The Erosion of Public Trust
Compounding the aforementioned problems, Brandus argues, is a broad erosion of public trust in those making the crucial decisions.
He notes that only 7% of Americans trust members of Congress.
“It’s hard to get anything done when people don’t trust the people in positions of authority,” he says of a trend that extends to business executives and bankers alike.
3. The Water Crisis
This summer's drought -- the worst in the U.S. in the last 50 years -- is just the beginning of the nation's water crisis. Brandus also points to the severe water loss due to faulty infrastructure. Upgrading the aging infrastructure will cost the government an estimated $1 trillion.
It's hard to imagine where the estimated $1 trillion will be found in an era of staggering, trillion dollar U.S. budget deficits.
The Other Disturbing Trends
Brandus says the failure to connect the dots among complex economic issues is another "disturbing" trend. For example, millions of private-sector job openings have been left unfilled due mismatches between skills and positions.
The “extinction crisis" is Brandus' fifth trend to watch. According to the Center for Biological Diversity, "30 to 50 percent of all species are possibly heading toward extinction by mid-century." This includes animals, rain forests, coral reefs, grasslands, tundra and the polar seas.
It turns out the tiny honeybee may be headed for extinction right along with Americans’ nest eggs.
http://finance.yahoo.com/blogs/daily-ticker/three-disturbing-economic-trends-2013-153106539.html
Very well written I think. If you put thosde things together, a person nearing retirement should be worried. Our leaders better pull their heads from their behinds and start REALLY finding solutions, and compromising. The consequences are really grim.
That being said, I know I'm sure not banking on SS being there in any capacity for me come retirement age. People would be crazy to not start taking matters into their own hands. Then, IF SS comes through with some additional income, great...but if not, they will be okay.
In a recent article, Brandus highlights 5 trends "we should focus on more (but sadly won't) in 2013."
He joins The Daily Ticker's new co-host Lauren Lyster in the accompanying interview to discuss three of his five "disturbing" trends for 2013.
1. We're headed to the poorhouse
According to reports, 75% of Americans have only $30,000 saved for retirement, a reminder of the country’s bleak personal savings level.
And that’s not all.
Social Security may be up for reform (though President Obama decided not to raise the eligibility age in the fiscal cliff deal), a further reminder that the nation’s unfunded liabilities remain at the forefront of a fiscal balancing act that isn’t going to magically straighten itself out.
And pensions, which in the old days rounded out a three-legged stool of retirement, are disappearing.
This may not amount to front-page news but it is nonetheless a potential disaster for retirees.
“I think it’s going to come to a head in the next couple of years,” Brandus says. “Those three things put together really pose challenging times for folks not just nearing retirement but for younger people as well who have, perhaps, doubt about whether they’ll have any of those things when their turn to retire comes along.”
And while the retirement stool teeters, forcing Americans to lean more on their personal savings, the policies in place encourage spending and growth at the expense of savings. Brandus concedes that this balancing act between savings and low-interest rates is a tricky problem with no simple answer.
2. The Erosion of Public Trust
Compounding the aforementioned problems, Brandus argues, is a broad erosion of public trust in those making the crucial decisions.
He notes that only 7% of Americans trust members of Congress.
“It’s hard to get anything done when people don’t trust the people in positions of authority,” he says of a trend that extends to business executives and bankers alike.
3. The Water Crisis
This summer's drought -- the worst in the U.S. in the last 50 years -- is just the beginning of the nation's water crisis. Brandus also points to the severe water loss due to faulty infrastructure. Upgrading the aging infrastructure will cost the government an estimated $1 trillion.
It's hard to imagine where the estimated $1 trillion will be found in an era of staggering, trillion dollar U.S. budget deficits.
The Other Disturbing Trends
Brandus says the failure to connect the dots among complex economic issues is another "disturbing" trend. For example, millions of private-sector job openings have been left unfilled due mismatches between skills and positions.
The “extinction crisis" is Brandus' fifth trend to watch. According to the Center for Biological Diversity, "30 to 50 percent of all species are possibly heading toward extinction by mid-century." This includes animals, rain forests, coral reefs, grasslands, tundra and the polar seas.
It turns out the tiny honeybee may be headed for extinction right along with Americans’ nest eggs.
http://finance.yahoo.com/blogs/daily-ticker/three-disturbing-economic-trends-2013-153106539.html
Very well written I think. If you put thosde things together, a person nearing retirement should be worried. Our leaders better pull their heads from their behinds and start REALLY finding solutions, and compromising. The consequences are really grim.
That being said, I know I'm sure not banking on SS being there in any capacity for me come retirement age. People would be crazy to not start taking matters into their own hands. Then, IF SS comes through with some additional income, great...but if not, they will be okay.
Taxed to death
Speaking of death... the new tax-rate for inheritances (ie: the "death tax") is 40% on estates over $1M and 45% on estates over $5M.
SO... when my parents die, and leave me X-amount of dollars (my inheritance), Uncle Sam is going to take 40% of it, straight off the top, before my sister and I see a DIME.
Keep in mind, my folks will already have paid tax on it several times, in order to save it, then charged capital-gains taxes on the investments, not to mention the fact that they paid property taxes on their properties for the entire time they've had them, and now... upon death, the gov't STEALS another 40%.
Correct me if i'm wrong, but isn't double-dipping (taxing the same item twice) against the law? How is it that the IRS gets away with this? A taxation loophole, I'd imagine.
Talk about taxation without representation.
I'm so sick of hearing that i "don't pay enough taxes". If the people making that statement only KNEW how much of my earnings get stolen from me each week, month, year.
Being penalized for success. How VERY American!
Speaking of death... the new tax-rate for inheritances (ie: the "death tax") is 40% on estates over $1M and 45% on estates over $5M.
SO... when my parents die, and leave me X-amount of dollars (my inheritance), Uncle Sam is going to take 40% of it, straight off the top, before my sister and I see a DIME.
Keep in mind, my folks will already have paid tax on it several times, in order to save it, then charged capital-gains taxes on the investments, not to mention the fact that they paid property taxes on their properties for the entire time they've had them, and now... upon death, the gov't STEALS another 40%.
Correct me if i'm wrong, but isn't double-dipping (taxing the same item twice) against the law? How is it that the IRS gets away with this? A taxation loophole, I'd imagine.
Talk about taxation without representation.
I'm so sick of hearing that i "don't pay enough taxes". If the people making that statement only KNEW how much of my earnings get stolen from me each week, month, year.
Being penalized for success. How VERY American!
Capital-Gains taxes?!? Seriously????? I've already been taxed several times on the money I invest.
I know. It's kind of like punishing people for being fiscally responsible. Most investments are already taxed to death...why make it easier and more attractive for Americans trying to do the right thing to take their money elsewhere? People get critisized for moving their money and investments overseas. How can you blame them? If I had that kind of money to play with, I would absolutely do the same.
I know. It's kind of like punishing people for being fiscally responsible. Most investments are already taxed to death...why make it easier and more attractive for Americans trying to do the right thing to take their money elsewhere? People get critisized for moving their money and investments overseas. How can you blame them? If I had that kind of money to play with, I would absolutely do the same.
I'm not "banking" on an SS-check (or direct-deposit, or debit-card).
The only person I trust to fund my retirement, is ME. I'll tell you though, Uncle Sam is doing everything in his power to erode away at my personal investments.
Capital-Gains taxes?!? Seriously????? I've already been taxed several times on the money I invest.
And now they want to steal all the ROI?!?
I hate Liberals in DC. The Robin-Hood mentality MUST be systematically dismantled and destroyed.
The only person I trust to fund my retirement, is ME. I'll tell you though, Uncle Sam is doing everything in his power to erode away at my personal investments.
Capital-Gains taxes?!? Seriously????? I've already been taxed several times on the money I invest.
And now they want to steal all the ROI?!?
I hate Liberals in DC. The Robin-Hood mentality MUST be systematically dismantled and destroyed.
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