Baby Boomers
The baby boomers are about to retire and the affect this will have on the economy will have profound consequences to society. The baby boomers have transformed the world in multiple ways and their retirement will be another impact to the world. When the baby boomers were teenagers, there were six of them for every person over 65. Today the ratio is three to one and by 2020 it will be two to one. The demographics of people working to people retiring will double in 2050 (Leslie & Edleman 167). This will have lasting effect on real estate, health care, religion, taxes, and housing, to name a few. The consequence of the baby boomers will influence macroeconomics and microeconomics combined with a million other less important concerns.
…show more content…
population of approximately 315,000,000 people. By 2050, 80 million baby boomers will potentially be on Medicare and Social Security. This will have a meaningful impact on the health care system and taxes owing for the retirees. The economy will be further positioned negatively as a result of fewer people working to support the staggering numbers of baby boomers. In 1935, Social security was implemented and the life expectancy at age 65 was 12.5 years. In 2012 this expectancy is now 19.15 years. Consequently, the compounded result of the baby boomers will cause many in congress to look for alterative ways to pay for the boomers rather then pass it onto the younger generations to foot the bill. Subsequently, the boomers will add 3% to the GDP every year after 2020, which may be circumvented through taxation increases. The end result will cause higher inflation or taxes or both that will overload an already broken economy (Mellor & Rehr …show more content…
It is estimated that 8.4 trillion dollars will be inherited by the baby boomers that will in turn be passed down to their children. There will also be more pharmaceutical companies investing in Alzheimer’s, other forms of dementia, heart issues, hearing, vision problems, and cancer. The cost of the funeral industry will increase as more and more baby boomers die creating an industry boom. The housing industry will be affected as more baby boomers down size to condos or retirement homes. This will positively affect the market in real estate (Leslie & Edleman 167). The changes in demographics of the baby boomers may affect the economy in a positive way depending on the
During the early post-war period, the term youth culture referred to the baby boomers, who made up an enormous portion of every country's population. During the 1960s, the time period this movie is based on, 'youth culture' referred to the teenagers, who were also baby boomers. For the first time in history, teenagers were working, and that means that they had purchasing power. Purchasing power is the single most important thing in an economy. If you are wealthy, every advertisement will be directed toward you, and every marketer will be your 'best friend'. Considering the fact that so many baby boomers had purchasing power, almost every advertisement was directed toward them. The continued success of many reputable businesses heavily relied
An aging population is indeed a problem for the society and will possibly cause many social and economic difficulties in the future. According to David Foot (2003), professor of Economics at University of Toronto, an effective birth rate of 2.2% against current 1.75% will be necessary to replace the current work force in the near future and the government’s policy of bringing in more immigrants will eventually fail (Foot, 2003, 2). However some people predict that the increased size of an aging population will drive growth in the home, health care, and many other industries resulting in job creation and economic growth (Marketwire, 2013, 1). Majority of the people are of the opinion that the issue will be mainly in the health care and economic activity. As humans age, they start to develop health problems, leading to more visits to a medical clinic putting extra burden on health care system.
Social Security is a system that was set up in 1935 after the Great depression to help people get through tough times. "Social Security is now used by nearly 44 million Americans"(policy.com). Only people who payed into social security are eligible to collect when they retire. Many people think that they receive the money they pay in but that is not total true. The money that you pay in is used for the people that are receiving it now. "In 1950 there were 16 workers for every beneficiary; today there are only three workers per beneficiary"(policy.com). There is more money going into social security then coming out now. The extra money goes into a trust to be used when it is needed. By the year 2032 those numbers are going to drop. By this time most baby boomers will be retired and collecting social security. This will put a big strain on the funds. There will be more money going out then coming in. And it will not take long to use all the money that is in the trust. By the year 2034 they will only be able to pay 75 percent of the beneficiaries. "The projected average monthly Social Security benefit in 2032 of about 1,100 (in 1998 dollars) would fall to about $800, and would drop further in later years. Average benefits for low-wage earners would drop from $670 to $480"(www.ssab). Theses cut would effect the people just starting to receive benefits and those who are already receiving benefits. And with each year these benefits will decrease. As these benefits continue to decrease "the percentage of aged people living in poverty would rise"(www.ssab).Most people believe this is happening because of the baby boomers generation. There will be more people taking from social security then giving in. By the time my generation is eliable to receive social security there may not be any money to give.
boomers take their knowledge and skills with them as they face retirement. As of now
However, the annual real growth rate of per capital GDP is only 2.01%, leaving a biggest gap among the 10 OECD countries with 2.29%. Meanwhile, the share of population age 65 and over 65 increases over time. It is projected that the share of elderly will increase from 12.4% in 2002 to 21.6% in 2070. Though the United States has relatively low elderly share compared to the other OECD countries, the fastest benefits growth rate makes the United States spend more than any other OECD countries with 18.8% of GDP spent government health care program. The increasing benefits level in Medicaid and Medicare and the aging trend will lead the United States government to a long-term fiscal
This will be a new evolution for the young people now and the young people to come, this means more educated people, which will change the way our jobs, economy, and development of our countries can be. More young people will explore their horizons and develop to be the best they can be instead of being forced to work a full-time low paying job and hit a dead end.
In Canada, over 400,000 babies were born annually from 1945 to 1965, which increased Canada’s population rate by 20% (“Canadian”). This period in Canadian history occurred after the Second World War when millions of men returned home to their families or immigrated to other countries with their war brides. Some ended up settling in Canada which dramatically increased the birth rate; their experience and survival of the war caused them to realize how important life is, instigating them to have as many children as they can support bringing about the group of people now referred to as the Baby Boom Generation. The baby boom generation significantly impacted Canada as it helped the young country to recover from the devastating Great Depression. Indeed, the baby boom generation had a positive contribution to Canadian society during the 1950s because it changed the face of Canada in the international stage, increased the Canadian living standard, and established and developed the suburban areas.
The Baby Boomer Generation (Born between 1946 and 1964) was born into the post-World War II economic prosperity and opportunity (Weston, 2006). Baby Boomers were members in smaller families and were doted on by parents, schools, and society as a whole (Weston, 2006). For the most part, they grew up in two-parent households where the father earned the family income and the mother was the home caretaker (Weston, 2006). News became more visual and dramatic as world-changing events such as men landing on the moon and the shooting of a president were seen on television (Weston,
From the baby Boomer generation, to the young adults just entering the work force for their first time, everyone will have the opportunity to access health care, some for the first time in their lives. Obama Care is an affordable choice for those who need it. When choosing a plan that is right for you, several options are available. “The marketplace allows individuals and small businesses to compare health plans on a level playing field.” (Key Features of ACA by year) With these baseline individuals are able to pick a plan, which is affordable for their lives. In addition to those who select their coverage, there is a separate plan for the population of Americans who are 65 years or older. This plan is known as Medicare. As with every insurance company, Medicare has separate breakdowns plans, to which coverage is not determined by your income. Medicare is an insurance plan for the baby Boomer generation. Robert B. Reich addresses the baby Boomer generation in his essay “Why the Rich Are Getting Richer and the Poor, Poorer” In the essay Reich was able to address the growth of our nation as a metaphor of boats rising and falling. This quote describes how workers in the twenty first century will be responsible for the Baby Boomer’s standard of living. He
Many Americans depend on Social Security benefits--from retirees, disabled workers, and dependents. Furthermore, numerous retirees have not saved enough money for retirement through other sources, so they count on Social Security as their basic source of income during their later years. Recently, the number of persons receiving Social Security has increased dramatically. This is largely due to the increasing number of persons in the baby boomer generation retiring and also people living many more years past retirement age. This increase in beneficiaries has initiated concerns and questions about the future of Social Security for persons still working. Recent studies have shown that in its current trend, the surplus of funds for Social Security will be depleted in the near future as the increase of payments will begin to exhaust the fund’s resources. To that end, reform of some kind is needed to help sustain this benefit for future generations to come (Social Security Administration, 2014).
The existing U.S. population is over 315 million and rising. In the year 2030, 72 million Americans will be 65 or older, a 50 percent change in age demographics since the year 2000. The change is primarily due to the aging baby boomers, who were born at the end of World War II. Americans are living longer than ever befo...
Another factor that differs these two generations is how they view work. Baby Boomers have a tendency to see work as their life. They live to work. The Baby Boomer generation is often characterized as being workaholics, as they place significance on their job status and experience (Generational Differences Chart). And because of this, their lives are often unbalance, with work taking a larger role in their lives than families. This is why some Baby Boomers refuse to retire because work gives them a drive to go
This will create more opportunities in health care, but this baby boom generation will have mostly used all their money by that point in their lives. They will have to rely on social security. This generation will need others to help pay for their medical care, which will fall upon the family members. This will result in more jobs for younger adults, but also more things to pay for.
generation, the Baby Boomers are now 50 and older. They’ve reached retirement age. Or what
Baby boomers are the people who were born during the demographic post-World War II in the years 1946-1964. Baby boomers are ranked the highest when it comes to being a productive part of their organization, hardworking, team player and they are good at mentoring others. However, they are ranked the lowest when it comes to being collaborative and adaptable.