Alumni Home > News & Events > Noteworthy > News & Features

Preparing for the Inevitable?

The Coming Generational Storm: What You Need to Know about America's Economic Future, by Larry Kotlikoff and Scott Burns '62

Co-author Scott Burns '62 photo: Dallas Morning News

As the 77 million baby boomers in the United States begin to retire by 2030, there will be twice as many retirees as there will be workers and the economic impacts could be monumental. The Coming Generational Storm: What You Need to Know about America's Economic Future, by Larry Kotlikoff and Scott Burns '62, examines what will happen to Social Security, Medicare and other federal programs as fewer taxpayers will be available to support them. According to Burns and Kotlikoff, skyrocketing tax rates, drastically lower retirement and health benefits, high inflation, a rapidly depreciating dollar, unemployment, and political instability are among some of the the likely scenarios. The government has lost its compass, they say, and the current administration is heading straight into the coming generational storm.

"One of the great things about MIT is the freedom it affords its students," says Burns. "When I became seriously interested in writing, MIT allowed the creation of a Creative Writing course.

"I'm not an expert in government accounting but as a financial writer I've been immensely frustrated by it for more than 30 years. That's why I was eager to co-author The Coming Generational Storm with Larry Kotlikoff. He is one of the creators of generational accounting, its prime mover, and its most tireless advocate. Generational accounting is the only tool I have seen in over 30 years of reporting that makes sense of government promises and commitments. It tells us our government is deeply over-promised. And our kids are in trouble."

So, how can the United States avoid this storm? Kotlikoff and Burns propose new policies, including substantial reforms of Social Security and Medicare, which are geared to attract support from both political parties. They also offer advice for individuals on how to protect their financial health and retirement should these reforms never be implemented.

Scott Burns received a degree in humanities and biology from MIT in 1962. He is a personal finance columnist for the Dallas Morning News, is syndicated nationally by United Press, and can also be read at MSN Money Central as well as scottburns.com. Larry Kotlikoff is Professor of Economics at Boston University and a Research Associate at the National Bureau of Economic Research.

To purchase a copy of the book or to read more about Scott Burns and Laurence J. Kotlikoff, go to the MIT Press Web site.