Could the ageing population sink the US economy?
Former Soros protege and current billionaire Stan Druckenmiller had some intriguing things to say about the future of the US economy. At an event this week, Druckenmiller said he sees a “massive, massive problem” for the US in the 15 years due to the ageing population. He believes the exploding costs of Medicare and Social Security will result in a future financial meltdown. In addition, he thinks the government will have to cut payments to seniors, which could have disastrous effects on spending levels. Druckenmiller pointed out that the US is “going to go from five workers of working age supporting every elderly person to two and a half because of demographics”. Essentially, the US will have to use more resources to protect the elderly – which means spending reductions elsewhere. Druckenmiller doesn’t believe higher taxes are the answer, but instead reductions to entitlement spending. (VIEW LINK)