The demographic trends of the post World War II
United States have condemned the
baby boomer generation to a not very appealing retirement. For the next 20 years or more those seeking
to retire will either be
unable to do so financially, or if they can, will do so only at a
substantially reduced standard of living.
For the first time since the New Deal, a majority of Americans are headed toward a retirement in which they will be financially worse off than their parents, jeopardizing a long era of improved living standards for the nation’s elderly, according to a growing consensus of new research.
The Great Recession and the weak recovery darkened the retirement picture for significant numbers of Americans. And the full extent of the damage is only now being grasped by experts and policymakers.
The only unusual thing in the above quote from a Washington Post article is that claim that only now is the problem being grasped by experts and policymakers. The problem has been known for decades, ever since anyone looked at the birth rates from 1945 to 1965.
An economy does not prosper because of low or high taxes or a rising stock market. An economy is made up of the amount of goods and services produced. Old people, retired people do not produce goods and services, they consume them. So with more old people and less goods and services producing people the economy must suffer.
The result here is that retirement will have to be delayed. Many people will have to work until well into their 70’s. Those that do retire will either be the lucky wealthy, the savers or those who get by on minimal income.
And no there is nothing to be done about this, its is foreordained by the baby boom which was followed by the baby bust. Unlike political dogma, economics and demographics can neither be spun nor denied.