Baby Boomer Economics Part II
Economic Recovery Demographics
Economic recoveries effect various demographics differently. The latest economic recession caused baby boomers financial hardships that they may not have expected. We reported a few months ago on a Wall Street Journal article that showed baby boomers were reaching into savings to help keep themselves afloat. Baby boomer consumption may have decreased more than normal which has a negative impact on overall consumption rates.
The Effect of Decreased Baby Boomer Savings
Spending for entitlements in the next few years will crowd out some government investment that could be used to stimulate future economic expansions. The inability of the U.S. government to expand during the baby boomer generation will have deleterious impacts on the future generations. The current economic recovery may effect ownership for heirs of those suffering through difficult times today. This could have significant negative long term effects if this continues to impact future generations.