Unfunded Liabilities

Advanced economies with aging populations have made lavish spending promises that are unafforadable absent huge tax increases. In Canada the “unfunded” amount is 7 times GDP. In Korea it is 6.8, in Spain it is 6.5, here in the USA it’s 5, in Australia it’s 4.8, in the UK 3.3, in Germany 2.8. France 2.7, in Italy 1.7 and Japan 1.6 times GDP. These huge burdens will require very unpleasant policy adjustments.

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