Can Spending on the Elderly Always Grow Faster than the Economy? Should It?

Brief

Can Spending on the Elderly Always Grow Faster than the Economy? Should It?

Abstract

No government program, no matter how important, can always grow faster than the economy and absorb an ever-increasing share of the nation's output. For example, when spending on retirees grows faster than the economy, the share of output available for everyone else combined must decline. But the retirees' share can't grow forever, just as everyone else's share can't go below a certain point. Eventually, a day of reckoning must arrive.

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