- posted 10 years ago
I haven't seen this posted or discussed hardly anywhere and I'd be very interested in the groups take on my perception.
Part of what has been driving our expanding economy over the last 60 years has been the growth of the baby boomers. As they've grown they've needed cars, homes, TVs, clothes and all the stuff we all need and use daily.
This increase in consumption led to an increase in production. Hence, we've had a lot of stuff produced which led to an increase in jobs.
But now, as the boomers are retiring and the following generations are NOT continuing to expand - the boomers had fewer kids than their parent's and the boomer's kids are having fewer grandchildren - it seems to me that our economy will have no option other than to contract.
Besides the point that there are fewer consumers following the boomers, the boomers themselves are using and buying less in retirement, and as they pass on they will leave a plethora or homes, buildings and other hard assets like cars, furniture, property and such to their heirs. Which may reduce the consumption of the inheriting generation.
I am curious if anyone else has noticed or considered this? Will the passing of the boomers cause our economy to contract, and if so how long until we see it get back to where it was?
I know that none of know the answer to these questions. I'm just curious if anyone else has contemplated this.
Gene E. Utterback, EA, RFC, ABA