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This article talks about the potential impact of the aging of the Baby Boomers.
There are a lot of speculations about what might happen with the changing demographics, especially with the potential pressure it will have on the U.S. budget.
I recently saw a graph that showed that the debt to GDP ratio will grow to more than 280 percent if the same policies on entitlement programs continue.
This article states, however, that the effects may not only be negative. There may be various factors such as rise of the retirement age that could offset the potential negative impacts of the aging population.
Regardless, this is a problem that the current college students will have to face so I find this to be very relevant.
5 comments:
Andrew bring ups a good point. Without doubt, baby boomers will begin to be accommodated and government workers will see that this entitlement program is unsustainable due the sheer number of people. However, with appropriate reform ahead of time may alleviate the loss from the dissolution of entitlement programs.
It is a huge problem. Social security simply cannot support these people. On the bright side there might be some ways to benefit from the baby boomers as they age. Buying shares of retirement companies and investing in health care may reap huge rewards in the future as this population will need larger amounts of these services to support them.
The aging of Baby Boomers proves to be a major problem in some areas, such as benefits given to them in mass quantities, but also an opportunity in other areas, as Viny pointed out. Buying shares is one area of opportunity; another is the amount of job creation that will occur in service sectors. As this generation ages and eventually retires, there will be many more job openings for the younger generations.
I agree with Austin. Social security cannot no longer afford to provide assistants to the aging baby boomers. Nonetheless, with the necessary reforms that will hopefully come I believe that we can unburden later generations.
The baby boomers not only face their retirement and start of a fixed income, but also the decrease in many of their savings that occurred as a result of the recession. There will be a high number of people retiring with less of their own savings to support themselves. We have seen in other countries recently how this age shift has negatively affected the economy and put a lot of stress on the government , and it will likely have the same effect on the US regardless of whatever jobs it creates.
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