Saturday, June 4, 2011

Can promises be rescinded?

I am talking not about individual promises made to each other but the ones which have been made from the state to the public. The States have made so many promises and IOUs to the public that it will be hardly surprising if they will ever keep it. So why give promises in the first place. Obviously to get votes what else and roll the hard decisions to the next generation of politicians who will come and blame the previous generation for the unrealistic promises made in terms of social security, pension and health care. Right now with every politician finding it hard to either raise taxes or reduce spending, these promises will just remain promises since they are unfunded.

Unfunded means that the promises have not been replenished with real money. Right now only the Social Security is being funded fully but in about 25 years that will just be a dream unless we reduce our promises, raise taxes or reduce drastically our expenditure. But who will be the one to take on this. It has to be a collective effort. But by the looks of the polls and surveys taken recently, the people are not as ready to have more taxes or reduce expenditure. There are too many entrenched interests to let this happen until it comes to a brick wall or a fiscal emergency. So again to my question can promises be rescinded and the answer is unfortunately it will have to be because there is no way the promises can be fulfilled with the current states of financial affairs.

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