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"Boomers are not going to spend at all like the prior generations did at 65. They're going to spend at boomer levels. And there's millions more of them." Where is the money coming from if they have little income? They can sell their houses that are underwater or we can assume workers from Mexico working in restaurants at low pay will be paying huge taxes or rich people will be buying treasuries to be repaid with interest to make up the difference. I see it actually took two people to write this brilliant article.
Oh, really? I just read an article whose premise is that the majority of boomers are woefully unprepared for retirement and will be living at or near poverty level. I wouldn't be too quick to invest in projects that cater to boomers- their financial future doesn't appear too rosy.
This article is dubious and a bit quisling. 1. There are millions of big homes that are still underwater! It seems like no one says one thing about that anymore? 2. The 75 million babyboomers are losing their money left and right. Right now, the boomers have lost 40 percent of their wealth since 2008! How are they supposed to spend?? Get right, writers. 3. The boomers have retired on average with $100 thousand dollars to their name. Now they are trying to help their own kids and their money is leaving like "Gone with the Wind". 4. 47 percent of the boomers kids with college degrees are still living at home with their parents. They cannot get a decent job or even think of getting married or buying a home or having kids. Perhaps we will become just like Japan. Very few kids at all. Just like Russia too. 5. So many boomers are out of work and starting to feel like they have been left with nothing. They are no longer connected to this economy and they are very angry. What goes around comes around. True anger is building out there big time. The future is bleak, not wonderful. And do not forget that all Americans just have lost 2 percent of their income due to FICA increase. It was needed but will that help the cconomy? Nooooo.
I'd love to spend more money. Until the private sector decides healthy, educated, and motivated boomers are good to hire for jobs, projects like this are likely to fail.
I'm worried that baby boomers will drain money out of the financial markets as they start spending their retirement savings. I'm further worried that housing values will fall in the next decade as baby boomers downsize. The upside is that eventually enough baby boomers will retire that there will be a labor shortage.
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