The clash of generations: saving ourselves, our kids, and our economy,

by Laurence J. Kotlikoff, Scott Burns

How America went bankrupt and how we can save ourselves—as a country and as individuals—from economic disaster. The United States is bankrupt, flat broke. Thanks to accounting that would make Enron blush, America's insolvency goes far beyond what our leaders are disclosing. The United States is a fiscal basket case, in worse shape than the notoriously bailed-out countries of Greece, Ireland, and others. How did this happen? In The Clash of Generations , experts Laurence Kotlikoff and Scott Burns document our six-decade, off-balance-sheet, unsustainable financing scheme. They explain how we have balanced our longer lives on the backs of our (relatively few) children. At the same time, we've been on a consumption spree, saving and investing less than nothing. And that's not to mention the evisceration of the middle class and a financial system that has proven it can't be trusted. Kotlikoff and Burns outline grassroots strategies for saving ourselves—and especially our children—from what could be a truly catastrophic financial collapse. Kotlikoff and Burns sounded the alarm in their widely acclaimed The Coming Generational Storm , but politicians didn't listen. Now the need for action is even more urgent. It's up to us to demand radical reform of our tax system, our healthcare system, and our Social Security system, and to insist on better paths to investment return than those provided by Wall Street (mis)managers. Kotlikoff and Burns's "Purple Plans" (so called because they will appeal to both Republicans and Democrats) have been endorsed by a who's who of economists and offer a new way forward; and their revolutionary investment strategy for individuals replaces the idea of financial capital with "life decision capital." Of course, we won't be doing all this just for ourselves. We need to fix America's fiscal mess before our kids inherit it.

Genres: Economics, Nonfiction, Politics

288 pages, Hardcover

First published March 23, 2012

Reviews

[Don · Rating 4 out of 5]

Anyone under the age of 40 needs to know what is in this book. I would have rated it 5 stars for content, but the authors are economists so they can't help but getting too deep sometimes for a general reading audience. Anyone with a finance background will understand everything. Everyone else who reads it will still find it worthwhile. All politicians should already know this stuff; if they don't they should be fired.

The authors lean liberal so they are to be commended to recognizing the great harm that liberal policies have created in bankrupting our nations future. Conservatives have been ineffective so far in fixing this. The book offers some credible solutions to fixing our nation's financial mess. Unfortunately, it requires upsetting just about every special interest group there is, so it is doubtful that the fix proposed will ever be put into place by the politicians that got us into this mess. This is a good argument for electing new leaders with the courage and character to make the changes needed to stop the unsustainable government spending.

[Kelly · Rating 2 out of 5]

I thought they did a great job of shifting the tone of their book from "we should be angry at the elderly" to proactive, logical solutions. However, they frame sweeping reform across financial regulation, health care, taxes, and social security as extremely simplistic ("so easy, we can explain the reforms on a postcard!"). It comes across as naive to the complexities and systems-level thinking needed to achieve such reform.

[Pradip Caulagi · Rating 3 out of 5]

Very America centric book, but compelling arguments on problems facing them.

[Shelley Hufton · Rating 4 out of 5]

Disturbingly informative lol - sad for the next generation

[Caren · Rating 4 out of 5]

Even though the two authors of this book are economists, the book is written so a lay person can easily understand its points. Further, parts of it are quite engaging, not at all as dry as you might imagine the topic to be. What I really appreciated is that they offer four solutions that could turn our country around. Whether they will be read and heeded is another matter... Their solutions are called the "purple postcard plan". The 'purple' indicates that the ideas would be acceptable to both sides of the political spectrum; they are not overtly red or blue. The 'postcard' part means that the ideas are each simple enough to fit succinctly on a postcard. The postcards address reform in these areas: banking, health care, taxes, personal (or social) security. The postcards offer public policy reforms. The authors also offer ways a person can alter his own lifestyle to make some painless changes in these areas. If you don't recognize these four areas as hot-button issues for our times, well, you must have been living on another planet. Particularly, if you care about preserving this country for your children/grandchildren, PLEASE read this book and get the conversation rolling. We have let this slide long enough.

[Malin Friess · Rating 5 out of 5]

We may me in debt 16 trillion (increased by about 4 trillion over 8 years with GW Bush and increased another 4 trillion over 4 years with Obama)...but we are actually over 200 trillion in real debt. That is all the entitlements, pensions, social security and so forth we have promised that we will not be able to pay out.

We can't keep kicking the bucket down the road. Its not fair to our kids and their kids.

They propose solutions called the Purple Plan (cute..mix red and blue and get Purple).

Purple Social Security...Purple health Care, etc...Purple Tax plan...I won't get into all the details. But I found the solutions to be bi partisan and reasonable.

Great book! I wish congress and the senate would listen.

[Natalie Jones · Rating 4 out of 5]

I read all of Kotlikoff's books and without doubt he is one of the top academic luminaries with intimate understanding of the world's economy. But Clash of the Generations feels like the new edition of the Generational Storm. There are few original ideas.
It would be nice to see more textbooks from Dr. Kotlikoff and less non-fiction.

[Seth Benzell · Rating 5 out of 5]

Very smart guy with a clear, compelling view. The fundamental question is to what extent projections of 40 years into the future, some of which depend on finely calibrated parameters, are to be taken seriously. That being said, that makes it seem like there is just as good a chance things will be much worse.

[William · Rating 5 out of 5]

This book presents the most unvarnished and understandble picture of the country's dire financial condition and what the politicans are doing to the young. It is a must read for anyone interested in the potential explosion and destruction of our econumy. ACTION IS NEEDED!

[Alice · Rating 4 out of 5]

This is the updated version of their The Coming Generational Storm which I read in February. Good overall advice explaining what any of us need to be aware of financially. And that no one is going to bail us out. So one needs to do everything they can to have their financial house in order.

[Ryan Loots · Rating 3 out of 5]

A little slow at times but makes a lot of valid points.

[Emily · Rating 4 out of 5]

The information is this book should be mandatory reading for anyone under the age of 40 - truly an important piece for our current nation