Usa Economy: The Babyboomer Impact

Every month, more than a quarter-million Americans turn 65.
. . . That’s a trend with profound economic consequences.
. . . Simply put, retirees don’t contribute as much to the economy as workers do.
. . . They don’t produce anything, at least directly.
. . . They don’t spend as much on average.
. . . And they’re much more likely to depend on others:
. . . . . . the government or
. . . . . . their own children, most often, than to support themselves.

Nearly 1/4 of Americans were born between 1946 and 1964,
. . . (the typical definition of the baby boom generation).
. . . That’s more than 75 million people.
In their heyday, the boomers were,
. . . an unprecedented economic force, pushing up,
. . . . . . rates of homeownership,
. . . . . . consumer spending and,
. . . . . . most important of all, employment.

It’s been downhill ever since.
. . . All else equal, fewer workers means less economic growth.
. . . One way to measure this is a figure known as the “dependency ratio,”
. . . or the number of people outside of working age
. . . (under 18 or over 64) per 100 adults between age 18 and 64.2
The higher the ratio, the worse the news:
. . . If more of the population is young or old,
. . . that leaves fewer working-age people to support them and
. . . contribute to the economy.

2014-058-08 Source:  USA Economy: The BabyBoomer Impact