Part of the problem of modern government is that many social schemes are funded on Ponzi-scheme principles – the whole thing is paid for today on the assumption that there will be enough people tomorrow to keep chipping in too. And the day after.

But as we know, demographic forecasts suggest that those assumptions may not be sustainable in the longer term for eg the European Social Model. There will be not enough young(er) people in jobs able to pay the taxes needed to support the growing numbers of non-working older people at the level of state care to which the latter think they are entitled.

Plus when you model the different schemes the costs tend to grow alarmingly.

Hence the problems with the Democrat healthcare reforms in the USA. The Democrats have the votes to pass whatever they like. But the programme is in trouble because the numbers just do not add up.

There is not enough tax out there to be raised to pay for the proposed changes without taxing existing schemes beloved by core Democrat voters such as union members.

Here is always cogent Keith Hennessey on the Big Picture predictions.

Add to that the inter-generational equity issues of (possibly) squeezing entitlements for older insured not-so-healthy people to extend insurance to currently uninsured younger and more healthy people, and you have a right old political mess.

Thus many Democrat politicians rightly fear electoral wipeout when they stand for re-election.

Good.

Don’t try to pass new laws the country can’t afford.