Margaret Thatcher once warned politicians about the dangers of socialism, saying, “The problem with socialism is that you eventually run out of other people’s money.” Today, there are concerns that we might run out of “other people” altogether due to rising debt and declining birth rates. This situation is troubling and could have serious consequences for future generations.
Over the past century, the U.S. federal debt has soared from $395 billion to a staggering $35.46 trillion. A report from the CATO Institute highlights that the hidden deficit for U.S. Social Security is an alarming $41.4 trillion. This looming financial crisis is expected to peak in 2033 when the Social Security trust fund could run dry. If this happens, payroll tax revenues may only cover about 75% of the benefits promised to retirees. The options for addressing this issue are challenging: cut benefits, increase taxes, or take on even more debt.
While the U.S. faces these issues, Europe is grappling with its own challenges. Many European countries are already in a precarious position, with current workers paying for pensions as birth rates decline. In Spain, for example, the birth rate is alarmingly low at just 1.16 children per woman. By 2050, Spain is projected to have as many retirees as workers, which raises concerns about future economic stability.
To tackle the demographic crisis, European leaders are looking to immigration as a solution. However, this could lead to more problems, particularly with illegal immigration, which may worsen the pension system rather than help it. In contrast, the U.S. has taken a different approach under the Trump administration, focusing on stricter immigration policies.
This situation is not just a matter of numbers but reflects a broader trend in leadership. Many current leaders seem to favor short-term gains over long-term solutions. The economist John Maynard Keynes believed that debt could stimulate the economy, but this view is increasingly questioned. The lack of leaders willing to make tough decisions for the future means that our grandchildren could inherit a world that is less secure, more divided, and burdened with debt.
In the coming articles, the aim is to explore how conservative leaders, particularly those in the U.S. and Europe, can shift their focus toward long-term policies. The goal is to create a more stable and prosperous future, even if it requires making difficult choices today.