Economy 52,842 Posted June 30, 2023 Share Posted June 30, 2023 https://fortune.com/2023/06/29/recession-ed-yardeni-consumer-spending-baby-boomers/ Even as rates rise the economy continues to defy predictions of a recession instead continuing to hum along. While pandemic savings were touted as a partial reason why the labor market has been so much more resilient than in past cycles it increasingly cannot explain all the strength in the jobs market and now some believe a shift that will last years are a result of the baby boomers Because that generation is so disproportionately large and they are all retiring, you now have a large chuck of the population that spends money from their pension and savings and consumes but does not take up a job. They are there for net consumers and net spenders. When consumers spend more than they save it is good for the job market and economy. However there is a drawback to this. Tho a large chuck of the population spending but not working helps keep unemployment low and the labor market more resilient, it is also inflationary... You essentially have a large group of people now that support only demand but not supply. That is good for jobs but also bad for raising prices and creating shortages Interestingly 10-20 years ago the baby boomers may have been having the exact opposite effect on economy, taking up jobs as they weren't retired yet but holding back on spending to save up for a retirement that was around the corner. They provided more supply than demand which kept unemployment higher but inflation lower Link to post Share on other sites More sharing options...
Economy 52,842 Posted June 30, 2023 Author Share Posted June 30, 2023 I should note this OP is fragmented from several articles each touching a bit on it I couldn't seem to find a single article that talked about all of it at once in the same article The one I posted in link mainly talks about the spending part of it but they kind of ignored the supply side of the story Link to post Share on other sites More sharing options...
AsleepOnTheCeiling 6,939 Posted June 30, 2023 Share Posted June 30, 2023 "Millennials are killing the Boomer Retirement fund" Link to post Share on other sites More sharing options...
berlinforme 5,385 Posted June 30, 2023 Share Posted June 30, 2023 1 hour ago, TortureMeOnReplay said: "Millennials are killing the Boomer Retirement fund" The media spin on this is immensely frustrating to me. The boomer generation is not just large enough to have effects on inflation and the job market as mentioned in the OP, they're also large and important enough that every societal issue is made boomer centric by politicians and the media. Makes it impossible to gather support for sustainable long term solutions to any problem as this would cause discomfort now and mainly benefit following generations. Link to post Share on other sites More sharing options...
Helxig 45,330 Posted June 30, 2023 Share Posted June 30, 2023 55 minutes ago, berlinforme said: The media spin on this is immensely frustrating to me. The boomer generation is not just large enough to have effects on inflation and the job market as mentioned in the OP, they're also large and important enough that every societal issue is made boomer centric by politicians and the media. Makes it impossible to gather support for sustainable long term solutions to any problem as this would cause discomfort now and mainly benefit following generations. There too many old ****s still alive to vote.. for a world that affects younger people and prevents societal progression. I truly think there should be a cutoff age for voting and politicians. Noone should be allowed to vote or be in politics after 70. Vote from 21-70. It's not their world they're affecting I'll be myself until they fūcking close the coffin. Link to post Share on other sites More sharing options...
CyanLights 15,576 Posted June 30, 2023 Share Posted June 30, 2023 4 hours ago, Helxig said: There too many old ****s still alive to vote.. for a world that affects younger people and prevents societal progression. I truly think there should be a cutoff age for voting and politicians. Noone should be allowed to vote or be in politics after 70. Vote from 21-70. It's not their world they're affecting I genuinely believe there should be a competency test to determine whether or not a certain age group can function (i.e. vote, drive, etc.) Link to post Share on other sites More sharing options...
Petie Estie 5,704 Posted June 30, 2023 Share Posted June 30, 2023 boomers sticking around in the workforce has made it impossible to get promotions and now that they are retiring it makes the prices so high it doesn't matter when you do Call your therapist...it's Petie Estie Link to post Share on other sites More sharing options...
Economy 52,842 Posted June 30, 2023 Author Share Posted June 30, 2023 6 hours ago, berlinforme said: The media spin on this is immensely frustrating to me. The boomer generation is not just large enough to have effects on inflation and the job market as mentioned in the OP, they're also large and important enough that every societal issue is made boomer centric by politicians and the media. Makes it impossible to gather support for sustainable long term solutions to any problem as this would cause discomfort now and mainly benefit following generations. That's a downside of a democracy (not that I'm suggesting another form of government is better but just acknowledging its flaws)... Ppl vote selfishly as a general rule not necessarily for the greater good and politicians cater to get elected. So the best things to do are not necessarily what get done Link to post Share on other sites More sharing options...
Economy 52,842 Posted July 1, 2023 Author Share Posted July 1, 2023 11 hours ago, CyanLights said: I genuinely believe there should be a competency test to determine whether or not a certain age group can function (i.e. vote, drive, etc.) You really think those competency tests wouldn't be biasly influenced by politics tho? Link to post Share on other sites More sharing options...
Economy 52,842 Posted July 1, 2023 Author Share Posted July 1, 2023 11 hours ago, SEANGT said: boomers sticking around in the workforce has made it impossible to get promotions and now that they are retiring it makes the prices so high it doesn't matter when you do The economy works best when supply and demand are roughly in balance... Too much supply means low inflation but high unemployment... Too much demand relative to supply usually means low unemployment but also high inflation When supply and demand are both healthy, you can have relatively low unemployment and still reasonable price stability... With a generation as disproportionately large as the baby boomers tho, the stage of their life ended up creating distortions. In the years leading up to their retirement they were taking up jobs but not spending it all because they needed to save for retirement. The result is they were producing supply but less demand... So unemployment was stubbornly kinda high but inflation also low Now it's the opposite. Too much retirees means they spend but don't work so they only produce demand now but no supply. Allows young ppl to work for the services they consume but prices also rise cuz we don't have enough labor and supply for all that demand Of course there's other factors at play. From 2008 to pandemic is wasn't just the boomers having a deflationary impact but also the overhang of the financial crisis Just like now it's not just the baby boomers turning inflationary... The Russia war, climate change impact on food production, money supply created during pandemic etc are massive factors... Nevertheless the impact baby boomers had before vs now on unemployment and inflation is interesting to analyse Link to post Share on other sites More sharing options...
CyanLights 15,576 Posted July 1, 2023 Share Posted July 1, 2023 18 minutes ago, Economy said: You really think those competency tests wouldn't be biasly influenced by politics tho? Oh 100% they would be, I’m just ✨dreaming Link to post Share on other sites More sharing options...
Economy 52,842 Posted July 1, 2023 Author Share Posted July 1, 2023 1 minute ago, CyanLights said: Oh 100% they would be, I’m just ✨dreaming Fair enough Link to post Share on other sites More sharing options...
Helxig 45,330 Posted July 1, 2023 Share Posted July 1, 2023 13 hours ago, SEANGT said: boomers sticking around in the workforce has made it impossible to get promotions and now that they are retiring it makes the prices so high it doesn't matter when you do They've been ****ing up the economy and environment, creating generational trauma, and everything else their whole lives and won't stop until they're gone I'll be myself until they fūcking close the coffin. Link to post Share on other sites More sharing options...
ALGAYDO 35,056 Posted July 1, 2023 Share Posted July 1, 2023 2 hours ago, Helxig said: They've been ****ing up the economy and environment, creating generational trauma, and everything else their whole lives and won't stop until they're gone Well it won’t be too long now Link to post Share on other sites More sharing options...
Economy 52,842 Posted July 1, 2023 Author Share Posted July 1, 2023 11 hours ago, ALGAYDO said: Well it won’t be too long now Come on that's so rude Especially since not every boomer is necessarily a crappy person. Let's not casually laugh at a group of ppl not having long to live regardless of how u feel about that generation as a whole I have 2 grandparents left and I certainly wouldn't laugh at the fact they don't have much time left (they were born a few years before the boomers so technically not boomers but same idea and principal regardless) Link to post Share on other sites More sharing options...
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