Janet Yellen says rising deficits are unsustainable and would cut benefits and raise taxes

Janet Yellen formerly of the Fed says our rising deficits are unsustainable. And that it will only get worse with baby boomer retiring and increased spending on health care.

  • “If I had a magic wand, I would raise taxes and cut retirement spending,” Yellen told CNBC’s Steve Liesman at the Charles Schwab Impact conference in Washington, D.C., who characterized the U.S. debt path as “unsustainable.”
  • Yellen noted this will only get worse as more baby boomers retire and spending on retirement and health care programs grow.

What do you think she means by unsustainable?

How much would she raise payroll taxes to cover SS and medicare? They are already over 15% of the cost of an employee. How much would she cut health care and retirement spending. She may have said, but I could not find the complete speech.

This eventuality has been known for decades now.

Every level of government has failed to act.

Eventually there will be no choice. Taxes will have to be raised and services will have to be cut.

Welcome to completely avoidable economic malaise.

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By “unsustainable” she means Donald and “conservatives” have exploded the deficit. Now everyone gets to pay for their irresponsibility. It ain’t rocket surgery.

I think that Donald Trump should mint 100 trillion-dollar coins and sprinkle them over China and the banks. Then once all of our bills are paid, everybody gets a tax-free year for the next forty years.

Yep, and specifically retirement spending as she pointed out. But there is no one to propose such cuts, or payroll tax hikes. I guess that’s how all those other countries ended up in default.

Or we could I don’t know, cut entitlements people didn’t pay into their whole lives before we cut SS


Actually, she’s agreeing with Paul Ryan…

If you just print money, it becomes worthless. We have a current example of that, right now…

Actually we should just do away with taxes and have the government print what it needs, which would in essence function as a fair tax that everyone shared equally as it would devalue the currency everyone uses. We already do it for like 40 plus percent of the budget.

Yep, U.S. inflation is 400 percent per week, I hear. Milk I bought for $3 on Friday is now worth $12 today. I’m just gonna stockpile milk and get rich, hombre!

Or we could I don’t know stop running up deficits that give the bulk of the money to the rich and corporations.

Hilarious, the bulk of government money comes from who? The poor?

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That’s outrageous. I’m offended.

We can start by indexing SS.

Great idea, give the rich and powerful incentive to end it. Should work out swell.

We have about 2% inflation, Yellen was talking about the future… But, there is a place like you describe.

I’m on the way to the store to buy all the milk! I don’t know why I chose milk! Driving and texting is hard!

No way to address the budget without cutting two of the largest expenditures.

That is the reality that decades of kicking the can down the road has led to.

Of course… my Gen X Social Security will be cut… probably not the boomers.

But I have thought that since the early 90’s.

So, you think Yellen lying about the cause? Because that’s not what she said it was…

I’m not sure why you are in such a panic. We only have 2% inflation right now.