O’Connor Op-Ed Warns of ‘Approaching Tsunami’ of Retirement Spending
Former U.S. Supreme Court Justice Sandra Day O’Connor is warning of an “approaching tsunami” of retirement and health spending that will burden the nation’s young people.
In an opinion piece co-written with former ambassador to Mexico James R. Jones, O’Connor says unfunded liabilities for Social Security, Medicare and Medicaid threaten the living standards of young people who may be asked foot the bill.
The article published in the Washington Post cites figures from the Government Accountability Office about the magnitude of costs of Social Security, Medicaid and Medicare that will come due in the next few decades. Even if every millionaire’s every dollar of wealth went to pay these costs, 80 percent of the unfunded liabilities forecast for these programs would remain.
“Our government was founded on the principle that the legitimacy of law derives from the consent of the governed,” the column says. “Today’s youths and future generations have not been consulted in the writing of our current social contract. Yet they soon may face financial burdens that most voters would find intolerable.”
The article says older generations must allow Congress to fix Social Security and to impose “sensible limits” on Medicare. The alternative, it says, would be higher rates of taxation for young people and possible huge budget deficits that could threaten financial stability.
O’Connor and Jones are honorary co-chairs of the Youth Entitlement Summit taking place today and tomorrow in Washington, D.C.
