An Oligarchy of Old People
5 hours ago
- #Intergenerational Inequality
- #Social Security
- #Gerontocracy
- American gerontocracy is uniquely democratic, with older politicians like Trump and Biden being elected freely.
- Economic power has shifted to the elderly, with those over 55 holding 74% of wealth, up from 56% in 1989.
- Social Security and Medicare, successful in reducing elderly poverty, now transfer wealth to the prosperous and face insolvency in about seven years.
- Intergenerational inequality has reversed and accelerated, with younger generations resenting older ones for hoarding wealth, jobs, and power.
- Housing market issues, such as rising costs and limited construction, disproportionately affect younger Americans, leading to lower homeownership rates and economic malaise.
- Government policies, including Proposition 13 in California, favor seniors, with $2 spent on seniors for every $1 spent on children across all programs.
- Globally, 'gerontonomia' prioritizes elderly citizens, tolerating unemployment and high debt while harming wage growth and social investment for the young.
- Proposals to address gerontocracy include mandatory retirement ages, wealth taxes, and revaluing votes, though these are extreme and unlikely.
- A new social contract is needed to redirect funds from elderly programs to family benefits, education, and infrastructure, ensuring optimism for today's workers.
- Curing gerontocracy requires gentler reforms, such as reducing benefits for the wealthiest seniors and investing in 'baby bonds' for children, alongside easing housing restrictions.