The younger people in America (and this likely goes for many parts of the world) are getting ripped off. They are being taken advantage of by the older people. Older people know how to vote and influence their so-called representatives in Congress. This isn’t to say that older people aren’t getting ripped off by the government too. But as far as wealth being redistributed, after the government and the lobbyists, the older generation is next in line for the plunder.
It is hard to define the specific age groups. Certainly anyone under 40 is getting ripped off. I would venture to say that anyone under 50 is too. Somebody who is 50 years old right now is probably not going to see Social Security and Medicare until at least the age of 70, and I even find that doubtful.
There is nothing in the Social Security trust fund except IOUs. It is part of the national debt. Even if those IOUs were good, there would still be a massive shortfall. And then there is the other, even more massive unfunded liability, called Medicare. There is no possible way that the program can be sustained anywhere close to its current form.
Working people have to pay taxes to fund wars, pay foreign dictators, provide subsidies to rich farmers, fund all of the bureaucrats who make their lives more difficult, and then pay for the retirement of tens of millions of people on top of it. Meanwhile, all of the money that is taken from them as part of the payroll taxes is spent immediately. None of it is saved.
I know of young people who are withdrawing money from their 401k plans because that is the only money they have in reserve. Many people don’t even have this option because if their 401k plan is with their current employer, they likely cannot take any kind of a withdrawal. The best you can do is to take a loan and pay yourself back.
Working people are taking on a huge burden. They are barely scraping by. It is very difficult to raise a family on a middle class income. About the only major subsidy you get is for education and the schools are so bad that many parents (and rightly so in my opinion) don’t even use the government schools that they are forced to pay for.
Not only are working people just barely getting by, but they are finding it difficult to fund any kind of a retirement. Most people are lucky to get a 401k, which is vulnerable not only to market fluctuations, but also the government trying to tax it more in the future. The thought of retirement seems almost like a fantasy for most people who are under the age of 50.
Meanwhile, these same working people have to pay for senior citizens to play golf and travel. Many seniors today have company pensions, which aren’t nearly as available to younger people today, except perhaps government workers. Again, good luck with your 401k plan.
At some point, I think the workers are going to shrug. It is not to say they will stop working or disappear a la John Galt. I think the younger people in America are going to realize they are getting ripped off and they will take a stand. They will no longer feel any sense of guilt or obligation to fund the retirement of the older generation.
At some point, there will be a congressman who stands up and says he is going to cut payroll taxes and lower the so-called benefits of Medicare and Social Security. Others will see that this is not political suicide. The younger people will start to demand this of their so-called representatives. At some point, there will be a major shift.
The major divide in the future of America will not be between Republicans and Democrats. It will be between young and old. The young people will eventually get fed up with working hard and seeing few results. They will get tired of seeing the older people living the good life at their expense, while they have little to look forward to. The workers outnumber the retirees. The workers will eventually figure this out and win.