Introduction:
Ken Langone, Vice Chairman of NYU Board of Trustees, addresses a crowd for a conversation titled “Generational Theft.”

Langone’s Gratitude and Concern:
Langone expresses gratitude for the opportunity to speak and highlights the importance of the topic. He acknowledges his privilege as a wealthy older individual and emphasizes the urgency of addressing generational theft.

Exploitation of the Younger Generation:
Langone laments that the younger generation is being robbed of future opportunities due to entitlement transfers. He expresses frustration that despite their intelligence and resources, young people are allowing this injustice to continue.

Consequences for Future Generations:
Langone stresses the significance of fixing the problem not only for the current generation but also for their children and future generations. He warns that inaction will lead to disastrous results and urges the audience to take action.

Personal Reflections:
Langone acknowledges the benefits he has received, including a medical center and a program at Stern School named after him. He reflects on the role of wealth in these achievements and questions the fairness of the system.

Injustice of Government Entitlements:
Langone criticizes the fact that he and his wife receive $3,500 monthly from the U.S. government, which comes from the pockets of younger taxpayers. He expresses disbelief that the younger generation is not taking action to address this issue.

Call for Political Action:
Langone emphasizes the importance of the political process in addressing generational theft. He calls on the younger generation to get involved and advocate for change, as the old guard is not acting in their best interests.

Urgency and Simplicity of the Solution:
Langone highlights the urgency of addressing the issue now, as it will be too late once the younger generation reaches his age. He refers to the painless solutions proposed by Simpson and Bowles and encourages the audience to support them.

Conclusion:
Langone concludes by urging the audience to rise up against generational theft and fight for their future. He emphasizes the importance of their involvement in bringing about positive change.

Stephanie Rule’s Introduction:
Stephanie Rule emphasizes the significance of the mission to prevent “generational theft” by the older generation. She highlights Ken Fisher’s passion for this cause and his concern that senior citizens’ strong lobby and voting power could lead to younger generations being financially disadvantaged.

Jeff Canada’s Perspective:
Jeff Canada, the founder of Harlem Children’s Zone, joins the mission due to his dedication to education and his concern for underprivileged children. He expresses his belief that students attending prestigious universities like NYU will likely succeed regardless, but he is deeply concerned about children from disadvantaged backgrounds who lack equal opportunities. Canada and his colleagues have dedicated decades to working in Harlem, aiming to change the outcomes for these children and provide them with a chance to achieve the American dream.

Geoffrey Canada’s Dedication:
Geoffrey Canada’s mission is to provide a nurturing environment for children in challenging circumstances by focusing on education and support from birth through college.

Political Differences and Common Ground:
Despite political differences, Geoffrey Canada, Stan, and Kenny unite in their shared concern for the future of young people in the country.

Financial Crisis and Deja Vu:
Stan’s charts predicting the financial collapse prompted Canada to take proactive measures to prevent a similar crisis in education.

Broken Promises and Generational Theft:
Canada emphasizes the generational theft occurring due to a lack of educational opportunities, depriving young people of the American dream.

Motivations and Inspiration:
Canada’s commitment to ensuring that children who play by the rules can still achieve the American dream drives his work.

Educational Careers among NYU Students:
Despite a relatively low number of NYU students expressing interest in education careers, Canada remains concerned about the future of education.

Bowdoin Experience and the Education Problem:
Canada’s time at Bowdoin highlighted the challenges in education, inspiring him to make it his life’s work.

Why Geoffrey Canada Chose Education:
Despite excelling in science classes and receiving encouragement to pursue a career in medicine, Geoffrey Canada remained committed to education. His experiences growing up in poverty and witnessing the struggles of his peers motivated him to make a difference in the lives of disadvantaged children.

Stan Druckenmiller’s Observations:
Stan Druckenmiller acknowledges his admiration for Geoffrey Canada’s work and the profound impact it has had on the lives of many. He draws parallels between the Vietnam War era and the current challenges faced by young people, emphasizing the need for them to recognize the dangers posed by the current political and economic system.

Wealth Transfer from Younger to Older Generations:
Druckenmiller highlights a concerning trend in the U.S. political system over the past 40 years, where wealth has been transferred from younger generations to older generations through government entitlement transfers. He emphasizes the unfairness and negative economic implications of this wealth transfer, particularly considering the demographic situation in the country.

Shift in Federal Budget Outlays:
Druckenmiller presents a chart illustrating the significant increase in federal government entitlement transfers as a percentage of federal budget outlays. This shift has occurred at the expense of investments in education, children, and future-oriented programs.

Changes in Social Security, Medicare, and Medicaid:
While Social Security, Medicare, and Medicaid have historically received a significant portion of federal outlays, the distribution of these funds has changed over time. Currently, over 50% of these outlays go to the elderly, while only 15% go to children, representing a significant wealth transfer from younger to older generations.

Wealth Transfer Visualization:
Druckenmiller presents a chart depicting the change in net worth from 1983 to 2010 for different age groups. The data reveals that individuals in their 20s and 30s have experienced a significant decline in their net worth compared to their counterparts in 1983, despite the strong economic growth during that period.

Transfer Payments and Poverty Rates:
Over the past 40 years, transfer payments to the elderly have increased significantly, while those to the young have decreased. As a result, the poverty rate among the elderly has decreased from around 25-30% in 1965-1970 to 9% today. In contrast, the poverty rate among children has increased from the teens to the mid-20s during the same period.

Wealth Disparity:
The average 90-year-old today spends 140% of what the average 45-year-old makes, despite not having a job or working for years. This demonstrates a massive transfer of wealth from future seniors to current seniors.

Future Spending Projections:
Government spending is projected to grow by a trillion dollars over the next 10 years, with 875 billion of that going to Social Security, Medicare, and Medicaid. In contrast, only 6 billion of the trillion dollars is allocated to children, including education.

Conclusion:
The wealth transfer from the young to the old has been ongoing for 40 years and is projected to continue in the future. This has led to a significant disparity in wealth between the generations, with the elderly benefiting at the expense of the young.

The Demographic Shift:
The number of seniors in the United States is expected to increase significantly in the coming years due to the post-World War II baby boom generation reaching retirement age. From 2013 to 2030, the working-age population (18-64 years old) is projected to grow by 17%, while the 65 and over population will grow by 102%. This demographic shift will result in a decrease in the number of working people supporting each senior, from 5:1 currently to 2.3:1 in 2030.

The Entitlement Challenge:
Entitlement programs, including Medicare, Medicaid, and Social Security, are projected to grow rapidly in the coming years, driven by the aging population. The cost of these programs is expected to exceed tax revenues, leading to a significant budget deficit. The current official debt of $16 trillion does not include the future obligations of entitlement programs, which would increase the total debt to an estimated $200 trillion.

The Intergenerational Transfer:
The current system of entitlement programs results in a transfer of wealth from future generations to current seniors. On average, a current senior is projected to receive $327,000 in benefits from entitlement programs over their lifetime, while an unborn person is expected to pay $420,000 more than they will receive in benefits.

The Political Impasse:
The political system is currently unable to address the challenge of entitlement reform due to the strong political influence of senior voters and the reluctance of politicians to risk their reelection chances. As a result, entitlement programs remain untouched, while other areas of the budget, such as education and Head Start programs, are subject to cuts.

The Economic Consequences:
The unsustainable growth of entitlement programs could lead to economic problems, including a decline in investment and job creation, as well as a potential collapse of the economy. The failure to address this issue could have severe consequences for future generations, who will bear the brunt of the financial burden.

Politicians’ Short-Term Focus:
Politicians, with their short-term focus due to the electoral cycle, are reluctant to support reforms to Social Security and Medicare, even if they believe in them. The fear of losing the support of the influential AARP, which represents senior citizens, deters politicians from proposing cuts to these programs.

Apathy Among Young People:
The younger generation has not taken a strong stance on Social Security and Medicare reform, despite being the ones who will bear the consequences of inaction. This apathy among the youth allows politicians to avoid addressing the issue.

Lack of Bipartisan Cooperation:
Both political parties have failed to come together to address the issue, with each blaming the other for inaction. Neither party is willing to take the political risk of proposing cuts to these programs without the support of the other party.

Leadership Failure:
The lack of leadership from politicians, particularly the president, is seen as a major contributing factor to the inaction on Social Security and Medicare reform. Politicians are criticized for prioritizing their re-election chances over the long-term interests of the country.

Public Awareness Gap:
Many senior citizens are unaware of the extent of the financial challenges facing Social Security and Medicare. Similarly, young people lack the knowledge and understanding of the issue to demand action from their leaders.

Economic Trends in the United States:
The presentation highlights significant societal and economic changes in the United States, including increased voter turnout among young people and minorities during President Obama’s first election. The presenter, Stan Druckenmiller, raises concerns about the current financial situation, referring to real-life examples of economic struggles in American cities like Detroit, Chicago, and Stockton, California.

Fiscal Imbalance and Solutions:
Druckenmiller emphasizes the need to address the fiscal imbalance, as the government’s printing of money cannot sustain the current spending levels. He proposes two hypothetical solutions: raising all taxes by 55% or cutting all federal spending by 36.2%. He warns that inaction will lead to even more severe measures in the future, with tax increases rising to 72% and spending cuts reaching 44%.

Government Spending Priorities:
Druckenmiller presents a chart showing a shift in government spending from investments in education, infrastructure, and R&D to payments to individuals. He highlights the decline in investments, which have decreased from 30% to 15% of the economy since 1970, while payments to individuals have increased from 28% to 67%.

Examples of Government-Funded Innovations:
Druckenmiller cites examples of innovations that were funded by the government, such as the interstate highway system, GPS, the internet, and the semiconductor. He emphasizes the importance of these investments in driving economic growth and technological advancement.

Audience Response and Criticisms:
Some audience members express skepticism and raise concerns about the accuracy and manipulation of statistics presented by Druckenmiller. They argue that factors such as population growth and increased life expectancy have contributed to the increase in spending on the elderly.

Demographic Challenges and the Bond Market:
Druckenmiller counters these arguments by stating that the demographic problem is just beginning and that the current spending on the elderly is not sustainable. He warns that the bond market will react negatively once investors realize the extent of the government’s obligations, leading to significantly higher interest rates.

Market Signals and Federal Reserve Policy:
Stan Druckenmiller emphasizes the unintended consequences of the Federal Reserve’s policy of buying 70% of the issued debt. By doing so, the Fed cancels market signals that might indicate potential problems, thus preventing the market from sending corrective signals. Druckenmiller stresses that this policy has both benefits and drawbacks, with the lack of market signals being a significant concern.

Advice to Young People:
In response to young people’s concerns, Ken Langone suggests grounding the discussion in relatable experiences.

American Dream and Fairness:
Langone shares his personal story, highlighting his humble beginnings and the hard work that led him to achieve the American dream. He questions the fairness of his success, considering the advantages he has received in his lifetime. Langone acknowledges his wife’s role in their shared success and believes she deserves recognition for her contributions.

Ken Langone’s View on Wealth and Charity:
Ken Langone expresses his discomfort with the vast wealth he possesses and the disparities in society. He mentions his donations to NYU and Stern School of Business, totaling over $200 million. He questions the fairness of a system that allows him to make such large contributions while others struggle to meet basic needs.

Geoffrey Canada’s Concerns about Fairness and Education:
Canada emphasizes the unfairness of a system that provides substantial benefits to wealthy individuals while cutting funding for crucial programs like Head Start and education. He stresses the importance of ensuring that the well-being of vulnerable children is not compromised as society’s wealth increases.

Generational Theft and the Plight of Young People:
A student shares his article on generational theft, highlighting the challenges faced by his generation, including standardized testing, student loans, and the perception of Medicare and Social Security as a Ponzi scheme. The student expresses frustration with the lack of opportunities and financial security for young people.

Stan Druckenmiller’s Call for Action and Means-Testing:
Druckenmiller encourages young people to be more vocal and active in advocating for their interests. He presents statistics showing that children will pay significantly more into Social Security than they will receive, while wealthy individuals like Ken Langone receive more than they contribute. Druckenmiller advocates for means-testing to ensure that wealthy individuals do not receive benefits that are intended for those in need.

Personal Motivations for Engagement:
Ken Langone expresses his deep passion for preserving the greatness of the United States and believes that addressing social security issues is crucial through the political process.

Audience Interaction:
Robert Hawkins, a faculty member at the Silver School of Social Work, applauds Langone’s initiative but raises concerns about the framing of the discussion and the lack of clarity regarding the actual money involved in social security.

Framing of the Issue:
Hawkins suggests that instead of using the term “generational theft,” it could be framed as societal changes, loss of labor market, reduced investments, and declining real income.

Social Security Funds:
Hawkins emphasizes that the money people pay in social security taxes doesn’t go into a specific lockbox but rather into the budget, and it’s not tangible in the sense that individuals can’t access it directly.

Average Payouts:
Hawkins points out that the average payout for social security is only about $1,200, while Langone receives the maximum amount of $3,500 per month.

Retirement Income Concerns:
Hawkins expresses concern about retirees who may only receive 57% of their previous income through social security, making it challenging to maintain a comfortable lifestyle.

Need for Solutions:
Hawkins emphasizes the importance of finding solutions to address these concerns, as many people may struggle to survive on a reduced income during retirement.

Political Courage Needed for Healthcare Reform:
The current healthcare system is unsustainable due to increasing longevity and the absence of workable solutions. Politicians need to be brave enough to implement necessary changes, such as raising taxes or conducting means tests, to avoid a situation where end-of-life decisions are made based on cost, as Sarah Palin warned.

Challenges in Healthcare Reform:
Ken Langone emphasizes the difficulty in balancing the demands of older voters, who often seek increased benefits, with the needs of younger generations, who may be left to bear the financial burden of such policies.

The Role of the Youth:
Langone believes that the youth should be more actively involved in advocating for healthcare reform, as their long-term interests are at stake. Stan Druckenmiller suggests that the youth have demonstrated their ability to mobilize and influence policy, such as in the case of the EPA, and encourages them to do the same for healthcare reform.

Addressing Political Obstacles:
Druckenmiller criticizes politicians for exempting older generations from healthcare reforms, citing the example of Paul Ryan’s proposal for vouchers and the subsequent loss of a Republican seat in New York. He advocates for means testing as a fair and necessary approach to healthcare reform, despite its political unpopularity among older voters.

Present Value of Future Outlays:
The present value of future outlays for entitlements and other government commitments is estimated to be around $200 trillion. This number has increased significantly from around $60 trillion just 10-15 years ago.

Capital Gains and Dividends Tax Cuts:
The tax cuts on capital gains and dividends disproportionately benefit older individuals who have accumulated wealth through investments. This creates a transfer of wealth from future seniors to current seniors, as younger individuals with lower net worth pay a higher percentage of their income in taxes.

The Fiscal Gap:
The fiscal gap, which represents the difference between the present value of future outlays and the present value of future revenues, has grown rapidly in recent years. This is due to factors such as tax cuts, increasing entitlement spending, and an aging population.

Government Debt:
The government’s debt is not limited to the $16 trillion in outstanding Treasury securities. Future entitlement payments also represent a significant debt obligation that is not reflected on the government’s balance sheet. In the next 10-15 years, this debt is expected to come on the balance sheet, leading to a substantial increase in the government’s debt burden.

Healthcare Costs as a Percentage of GDP:
Current tax revenues are 18% of GDP, and the Congressional Budget Office estimates that Medicare, Medicaid, and exchange subsidies will account for 17% of GDP between now and 2080. Significantly reducing medical costs would not solve the overall fiscal problem but would be a crucial step.

Social Security vs. Healthcare as a Focus:
The healthcare crisis is a more pressing issue than Social Security and should be the focus of efforts to reduce government spending.

Aging Population and Healthcare Costs:
The aging population leads to increased healthcare costs as people live longer and face age-related health issues.

Tort Reform and Malpractice Insurance:
Tort reform and addressing malpractice insurance issues could reduce defensive medicine practices and lower overall healthcare costs.

Lack of Transparency and Copayments:
The current healthcare system lacks transparency, and consumers are not incentivized to be cost-conscious due to third-party payments and fee-for-service models. Introducing copayments and increasing consumer choice could encourage individuals to be more mindful of healthcare costs.

High US Healthcare Costs vs. Outcomes:
The United States spends significantly more on healthcare than other G20 countries but has worse medical outcomes.

Complexity of the Problem:
Solving the healthcare crisis requires a multifaceted approach involving politicians, society, and various stakeholders.

Key Issues:
The US government faces significant financial challenges due to rising healthcare costs and an aging population. The current spending approach prioritizes older generations at the expense of younger generations, leading to a transfer of wealth from the young to the old. This generational theft is reflected in the national debt and unfunded liabilities, which will burden future generations with higher taxes and reduced services.

Urgency for Young People:
Young people are disproportionately affected by healthcare costs and have a vested interest in ensuring a sustainable healthcare system for their future. The current spending priorities jeopardize the economic opportunities and quality of life for younger generations. It is crucial for young people to understand the implications of generational theft and take action to address it.

Call to Action:
Young people are encouraged to get involved and raise awareness about generational theft through social media and grassroots movements. Hashtag generationaltheft to engage politicians and spread the message on social media platforms. Attend events and support organizations like Can Kicks Back to learn more and advocate for change. Mobilize and target specific congressional districts to influence elections and hold politicians accountable. Create a tangible image or symbol to galvanize public support and make the issue relatable to the average person.

Personal Anecdotes:
Ken Langone emphasizes the importance of getting involved and highlights the success of the Tea Party movement as an example of grassroots impact. Geoffrey Canada urges young people to pay attention to budget cuts that disproportionately affect the poor and to question the lack of focus on saving money in certain areas. Stan Druckenmiller encourages young people to seize the opportunity to make a difference using social media and digital tools that were not available during previous movements.

Conclusion:
The presentation emphasizes the need for young people to take an active role in addressing generational theft and fighting for a fair and sustainable future. By raising awareness, engaging in activism, and mobilizing their peers, young people can influence policy decisions and ensure that the burden of generational theft is not passed on to them.