I was watching a pathetic bit of news a couple of nights ago – Right now, about 1,200 members of the military’s “Greatest Generation” are dying per day. That’s probably a good indicator of the mortality rate of their entire generation. And to think what they went through… Some were born into a crushing depression or at least knew of the disaster of WWII at a very young age. But they got us through “The Big War”, rebuilt Europe and Japan, slogged through both the Korean and Viet Nam Wars, created NASA, etc.
So after all that, where is the “Greatest Generation” now, and what are they facing? According to AARP of those Americans aged 65 and older, 59% “found it more difficult to pay for essential items such as food, gas and medicine” due to the economic slowdown. How can that be and just how bad is the economy? How can we put this in perspective for everyone including the folks who saved the world back in the ’40s?
Consider this… According to CNBC, here are the costs (with inflation factored in) of various large U.S. expenditures:
- Hoover Dam: $.782 billion
- Panama Canal: $7.9 billion
- Gulf War I: $98 billion
- Marshall Plan: $115.3 billion
- Louisiana Purchase: $217 billion
- Race to the moon: $237 billion
- Savings and loan crisis: $256 billion
- Korean War: $454 billion
- New Deal: $500 billion
- Gulf War/War On Terror: $597 billion
- Viet Nam War: $698 billion
- All of NASA since it started: $851 billion
All told, the total cost of all those projects comes up to $4031.982 billion dollars or $4,031,982,000,000. (Yeah, that’s four trillion dollars.) But let’s stop right here and explain to Grandpa that according to Jenna Lee on Fox News, the total costs of all the bailouts will be probably add up to something on the order of 6.8 trillion dollars. (CNN paints a less rosy picture at $7,000,000,000,000, but I’ll stick with Ms. Lee’s numbers because I’m an optimist and besides I’ve already done the math based on her calculations. Besides, what’s a couple hundred billion between friends?)
But Grandpa can’t grasp the magnitude of a number like 6.8 trillion dollars. Cripes! All of WWII “only” cost $3.6 trillion by today’s measure. Maybe the following will help you, Gramps: Imagine the U.S. Mint making a new silver dollar of exactly 1″ in diameter. And imagine that we discovered a way to weld those silver dollars edge to edge (not face to face) to make a flat sort of a “silver dollar chain”. So far, so good right?. If we could do that and make it super strong, we could even make our “silver dollar chain” stretch the 240,000 miles to the moon – that’s 15,206,400,000 inches worth of silver dollars or apx. 15.2 billion dollars. But in the scale of the total bailout disaster $15.2 billion is chump change.
Nope… We’ve got to make us another “silver dollar chain” consisting of 15,206,400,000. But that only gets us to a wimpy $30.4 billion. (At least we could place the second chain beside the first and have one monumental “Hot Wheels” track!) “Ummm…” Grand Pappy peevishly asks, “How many ’15.2 billion dollar silver chains’ to the moon would you fiscally-irresponsible whippersnappers need to cover the cost of the 6.8 trillion dollar bailout?” “Ahhh… Errr… We’d need 447” is our pathetic response. That’s a 2- to 3-lane highway of one-inch silver dollars welded edge to edge stretching from here to the moon.
As frightening as the above sounds, that’s the good news. The bad news is that almost no one dares speak the name of the “S-Squared M-Squared Monster”, (Social Security/Medicare/Medicaid). That beast is going to run up around $50,000,000,000,000 or 50 trillion dollars or a 10-lane “silver dollar chain” highway to the moon. And here’s the kicker… Our GDP is only apx. $12 trillion. Taking into account interest, we’re building an economic bridge to the moon we can’t finish.
You don’t have to be an economist to see the handwriting on the wall… Sooner or later (I’m guessing 2012), it’s all going to fall apart. And fortunately or unfortunately (depending on how you view things), some of the the “Greatest Generation” will have to watch it happen. They came into this world under very tough circumstances, and most likely will leave the same way if they haven’t done so already. And the rest of us will be left behind trying to explain how we failed their legacy in just twenty years – the time span of just one generation.
Alan Speakman
P.S. Somebody… Anybody… Please check my math and facts. Man, I hope I’m wrong on this one.