Chapter 14 L

Question 0

Will the system collapse bc baby boomers are leaving and fewer around to support?

Answer 0

no. mkts react to change, labour force won’t shrink indefinitely, technology will continue to advance.

Question 1

What happens when gov borrowing is too high? do they go broke?

Answer 1

they don’t go broke like us. govs can change law, raise taxes, borrow$, or print money. plus, govs are an infinite being so they can be in debt but it doesn’t matter. just means that their current revenues are supporting their expenses.

Question 2

will there be a smaller tax vase bc of shrinking labour force?

Answer 2

not necessarily. as force shrinks, wages will increase.

Question 3

We will have a shrinking labour force right?

Answer 3

not necessarily. more people may stay working longer. more immigration for jobs.

Question 4

Health care costs will increase right?

Answer 4

not really. costs may Increase, but we will spend smarter under the same budget.