Posted by: Barthélemy Barbancourt in Blog on Sep 27, 2011
Liberals are fighting a headwind that few of them even recognize. The Baby Boomers are getting older, retiring, spending less and making less. They are also using more government programs like Medicare and Social Security.
With millions of Baby Boomers entering or nearing retirement in the coming years, a three-decade old pattern of consumer spending is likely to change dramatically, as disposable income not only declines but shifts from discretionary areas such as retail to more essential ones like health care.
The aging population will make it more difficult to grow consumer spending the way the U.S. did in the 1990s, or anytime since World War II.
In the end, all of the fiscal and monetary stimuli in the world won’t make the U.S. young again.
Every Liberal should be forced to recite this until they actually get it. It was relatively easy to raise taxes and fund new programs when the Boomers where in their 30's and 40's, their incomes were going up and they were spending lots of money.
Generation X is 1/2 the size of the Boom, there just aren't enough of us to fund the massive government that the Boomers were able to fund, even if the economy didn't suck, but it does and will for a while.
Also factor in that not only didn't boomers save personally for retirement, they also pissed away the SS surplus that was supposed to fund their retirement. They are an insult to drunk sailors in that they not only spent every dime they had, they also spend their kids and grand kids money too.
If we are going to even attempt to fund SS and Medicare, we need to be honest about the other sectors of government that are now unaffordable. Given the $1.5 trillion deficit, this is covers just about everything else the federal government does.