Baby Boomers Essay

The people from the baby boomer generation are all nearing, if not already in, retirement and old age. Over the next 20 years the amount of elderly people of retirement age is supposed to increase somewhere around 50%. Because of this imbalance there will be a lot of money being directed toward taking care of the baby boomer generation which may lead to decreased funding for younger generations. The baby boomers will all retire around the same time, leaving jobs unfilled. There may also be troubles in the housing market as there may not be enough young people to buy all the houses they sell. The number of immigrants in America are increasing and replacing the baby boomers in being the dominating group in our population.

In addition, many manufacturing jobs went overseas both to South America, China and Japan (How the Baby Boomers Destroyed Everything)2. These jobs are yet to be replaced. Instead of working to replace the lost jobs, Baby Boomers sought help through the government, further placing the government in

A baby boom is an abrupt rise in the population and it ends when a sudden drop in the number of births is examined. Baby boomers are people who were born between 1946-1965, after World War 2 when the economy reached a stable point. During this time period, more than 8.2 million babies were born, which is almost 412,000 a year. This took place in Canada when individuals were safe and comfortable with starting families. As the economy prospered and families were reunited, they desired more and more children.

The two types of legislation that may or may not affect the aging population in the United States are; The Patient Protection and Affordable Care Act of 2010 and the Health Care and Education Affordability Reconciliation Act of 2010 respectively. Population aging may affect financial markets if individuals tend to amass assets during their working years and spend them during retirement. When there is a large cohort such as the baby boom, there may be more demand than usual for corporate stock and other assets while the cohort saves for retirement. This demand for corporate stock and other assets may abate after the cohort retires. (tonihansberry, 2012)

The Baby Boom generation has played a major key in the American economy over the past 50 years. More importantly over the past 30 years as these individuals have come to age and began leading society they have been the main driving force for the economy, “In their heyday, the boomers were an unprecedented economic force, pushing up rates of homeownership, consumer spending and, most important of all, employment. (Casselman 2014)”. This generation makes up a key number of population in today’s society. This paper will look at the positive and negative effects that the group has had in the American economy and how economists plan future projections from the impact of the group. Retiring age for this group has hit or is fast approaching is the economy set for a steep decline because of this or can it maintain status quo?

Another way the economy will suffer is through the increase need for health care and elder care. As the baby boomers get older, their need for these types of expenditures will increase as well. Consequently, this increases the national health care spending too. Another problem is that governmental entities will start to lose tax revenues that the baby boomers provided so considerably. There will also be an increase in the federal budget deficit. The government will be spending more while receiving less revenue from the baby boomers. Younger generations can expect tax increases to help cover Social Security and Medicare. Even after all of these problems, there is still the burden that the baby boomers are going to leave for the current generation and the ones to follow. This will then lead to lower average of living standards for the baby boomers, and the major assets of the baby boomers will begin to decrease in value since more people will be trying to sell their assets than people willing to buy them. Retailers will also be affected negatively by this movement. Retailers can expect to lose revenue since the baby boomers will probably not spend as much, and marketers will have a difficult time searching for more sources or creating new ideas to attract the younger generations. Although there have been efforts at correcting the problem with the graying of America, governmental reform is necessary to avoid the storm of

Once the baby boomers retire, there will be far more retirees drawing benefits than workers to support them. Right now the ratio of workers exceeds the number of beneficiaries. In the year 2030 it will be even less. In less that 2 decades, the taxes that the government will collect from the workers will not cover the benefits that they are paying out. This will cause the government to either stop Social Security, dip more into debt by continuing to pay, or institute a plan.

As my parents discuss the need to continue working several more years until retirement, I have thought about how their continuation in the workforce will affect me after graduation. Are there going to be less job opportunities available for the newly graduated because people like my parents intend to work until they are 70? Also why do they believe they need to work until they are 70? Is the low Federal Funds Rate, which sets the tone for other interest rates, impacting their retirement savings? It is in hope of seeking answers to the questions I raised above that I selected to research the impact the federal funds rate has on the economy and weather the continued low rate needs to be increased.

As the baby boomer generation begins to reach retirement age, there has been much speculation as to what affect they will have on the health care industry. The baby boomer generation is the group of people born between 1946 and 1964. At one point, there were more than 76 million of them, of which 4 million died before 2000. With all this in mind, I will discuss what specific effects they will have now they are getting to that “elderly” stage.

In today’s society, the work industry is comprised of numerous generations from baby boomers to millennia’s. Due to reasons ranging from increased cost of living to political policies, Americans are being forced to work longer in order to obtain the social security benefits they’ve contributed to during their careers. Each generation has certain generational influences such as war times and civil rights for the baby boomers and social media and the technology boom for the millennia’s. One constant that has not changed, however, is that the average American has to work for a living, and with the evolution of the US economy, they are having to work longer and are retiring later.

In general, countries experiencing high fertility and rapid population growth, have a “young” population structure and the important policy considerations are if there are enough schools and, sufficient jobs and housing to accommodate this population. Countries with “old” population structures face the problems of structuring and developing retirement and health systems to serve this older population and also they have a considerable reduction the number of the working force. The decline of the work force is one of the most dramatic economic tendencies of the past four decades in the United States. The individual’s decision of whether to stay in the workforce or to retire is based on the collaboration of a number of factors including the following: eligibility for Social Security benefits, availability of and benefits under an employer-financed pension plan, work

I believe that all four of the generations in the work place can work together without having any conflicts. Many professional facilities and companies have people of different age groups working together in the same field. There are many articles written by different people who say that studies show that there are many conflicts between the generations, while working together. The four different types of generations are the veterans, the baby boomers, the generation X, and the generation Y. I will talk of all their important characteristics and compare and contrast their qualities based on work ethics, education, and multi-tasking.

Baby Boomers have been one of the most powerful forces in shaping the economic environment and are the wealthiest generation in the United States (Kotler and Armstrong, 2015). “In their early years, “Leading Edge” Boomers enjoyed economic prosperity, and their resulting financial power in their prime years drove rising trends in everything. However, the recessionary years of the early 1970’s also added cautionary realities to their youthful consumption and employment dreams” (“America’s Oldest Boomers”, n.d.). Baby boomers control approximately 70% of the disposable income in the United States, therefore, they are known as being one of the most influential financial forces in the marketplace (“Baby Boomers Report”, 2015). As they reach their

About 76 million baby boomers are set to retire by the end of this decade. 35 % say that they will work part time just for the interest and enjoyment. 26% say that they will work mainly for the income. 17% say that they have a plan to start their own business. 5% of older workers say that they plan to work full time at a new job or career. Lastly, 16% say that they will not work at all after retiring.

The impact of this shift, which is beginning right now for the initial waves of millions of baby boomers, cannot be overestimated. Born between 1946 and 1964, these boomers will need to plan for a retirement that could last for more than 30 years. So, it 's not only those close to retirement, but an entire generation that may need professional help to ensure that their portfolios will provide an income throughout their lifetimes.