For a while, it was mystifying as to why there seemed to be a wide divide of concern among age groups with our growing federal debt and excessive spending for entitlement programs.
But then, as I observed and thought about the differences in use and spending habits between the generations, the picture cleared. Why aren’t the younger folks up in arms because the monies they are paying into Social Security and Medicare are being used for current recipients, not saved for them?
For many of us age 65 and older, we came in late in the use of credit for consumer purchases, travel, vacations, etc. We are at the tail end of the Wait Generation. That means we wait until we have the cash to pay for what we want.
We raised the Next Generation, giving them a good education, not expecting them to labor, as in manual work, very hard while growing up. We’d been there and knew it was no fun to be expected to do chores both before and after school.
As the Next Generation reached adulthood, they soon became the Now Generation. Hey, we don’t have to wait; we can buy the big house now (much bigger than our parents); we can drive a new car every couple of years (no more driving a car for eight and 10 years); we can take a vacation every year (every five years is out the window); we can give our kids everything we wanted and everything new on the market (no more telling them to wait until they could pay for it themselves). Ah yes, let the good times roll!
Meanwhile over in Washington, Congress and the administration were under the gun to keep the good times rolling; economic down cycles were met with increased government spending, all deficit spending. Economic cycle after cycle down draft was met with the Federal Reserve lowering of interest rates and federal government spending. We had Social Security as a government entitlement since the 1930s; to perhaps off-set some of the Vietnam War criticism other entitlements were being offered by our elected officials — education and health.
Lifting a leaf from the Social Security experience, Congress passed these new entitlements and the recipients on programs like Medicare were using funds from those still contributing. Education and Medicaid entitlements were direct pulls from the federal treasury, regardless as to revenues from taxes available to support those entitlements.
As the Now Generation’s offspring — the Me Me Generation — has moved into the working-era age bracket, we’ve watched as many seem to struggle to find themselves. Over the past 20 years, my wife, Barbara, and I have bumped into dozens of young folks traveling in foreign countries just out of college or 25 to 35 in ages “trying to find” themselves as they search for a meaningful life or employment.
When I piece it all together it makes sense as to why only the Wait Generation seems concerned about excessive government spending and debt. The Now Generation is more concerned about their own debts, and the Me Me Generation hasn’t tuned into economics, after all Washington is just another weekly reality show. There will be a new show next week. Oh, could I borrow enough to cover my rent? I’ll pay you back next week or just as soon as I find a job!
Konrad Heid lives in Joplin.
