Huge numbers of people in the West are dependent on their government pensions or other retirement allowances. In Russia and the developing world they are generally pidly and thus do not represent a huge current or future taxation risk.
But in the west with extremely unfavorable demographics of the bulging retirement population combined with huge debt and deficits, this is the kind of problem many of these societies are experiencing.
“For example, as of 2008, the estimates for the underfunding of the United States state pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion.” (From Wikipedia).
Not coincidentally, Japan with a burgeoning retiree population combined with low immigration and high longevity has a totally unviable and eventually deadly government deficit of 200 percent. America as the above quote is also dangerous territory.
Nothing short of dictatorial takeovers in these countries with dedicated fiscalists will stop this fiscal March to societal Armageddon it almost seems from certain perspectives. Western politicians with entitlement populations and too many crony czpitslists they are connected to lack the moral force especially over a four year election cycle to stop the rot in the future.
The real danger as these entitlements decrease, the war machinery will be revved up to distract the population from complaining about entitlement cuts. That the ridiculous situation of the military industrial-security complex swallowing so much money from social security will be worsening tensions. Thus, the negative bogeyman image of thev likes of Putin will be “blown-up” even further by Washington and NATO as being the cause of all the western problems. It is an old formula to irresponsible ethical and financial leadership.
Too much of the West’s political leadership is morally and fiscally bankrupt. Because they also think in part people like Vladimir Putin can make up for the grossness of US fiscal and debt insanity connected in part to war mongering and excess exceptionalism. It makes no sense and risks the West going fascist-police state in decades ahead if not sooner. How sad. The modern Weimar is in the making and the eventual fall-out?
Hopefully not and that brinkmanship will wake up enough of the western electorate tomp ush for better quality leadership. I doubt it will happen.