In the midst of the relentless economic downturn, where many find themselves ensnared by the claws of poverty, it becomes imperative to dissect the underlying factors contributing to this crisis. We look into the pivotal role played by baby boomers in the unraveling of our economic fabric, shedding light on the profound impact of their decisions on the current financial landscape
High Education Cost
Boomers who occupy positions of power in private and government institutions have shot the cost of education to an all-time high that looks unattainable for the millennials. This has caused so many turmoils worldwide, making families unable to finance their children’s college funds without resulting in educational loans. For instance, in the 1960s, public college tuition was just $6,700 compared to the ridiculous amount of $25,400 that students pay nowadays.
Hoard Job Opportunities
As if the mess of the Great Depression was not enough, boomers contributed to the rising unemployment metrics that contributed significantly to the financial difficulties of many people eager to get a job and pay for their student loans after the pandemic. The disappearance of the mid-skilled job forced boomers to capitalize on lower-level jobs that were designed for the people on the lower strata of the economic value chain. This act further unbalanced the economy, rendering a more significant percentage of workers jobless.
Resistance to Change
The failure of boomers to adapt to the new world order and the ultra-technological approach of the world have placed them as a burden on the economy that is mandated to carry them along. Boomers are less inclined to adapt to the changing world and work environment, which hinders economic prosperity and limits innovative ideas.
Plunged the Government into a Debt Burden
The rising government debt burden at all levels was made complex by the ever-increasing demand to fund pension schemes and healthcare services for retired boomers who are at the mercy of the government. This, in particular, has placed a strain on the government’s financial status and forced them to take out of the dwindling reserves to fulfill their needs.
Wealth Transfer to Their Heirs
It’s common among the boomers to try and domicile their wealth in their household by transferring it to their heirs. This is called intergenerational wealth transfer, which often leads to inequality and disparity between those with access to such wealth and those who have to build from scratch. It’s another method of upsetting the economic system whereby others may struggle to attain that level of financial security compared to those who enjoy wealth transfer
Environmental Degradation
Climate change doesn’t occur out of thin air; it comes from the unregulated consumption pattern of boomers who were aversion to the negative impact of climate change on the world’s economic growth. Their unsanitary appetite has dramatically increased resource depletion and waste, leading to a weakened economic drive due to less labor productivity.
Stifle Innovation
The slow intake and advancement of innovation can be attributed to the increasing number of baby boomers who are in positions of power; they are mainly resistant to new technologies due to one fear or another. This is a bad precedent that further exacerbated the unsealing workings of the world economy due to the slowdown of integrating innovative ideas to enhance economic prosperity.
Skill Deficits
No one can disregard the impact of baby boomers’ experience and knowledge in our workforce. The glut in the retirement of most of them has opened up a large skill deficit, especially for those who hold one or more specialized positions in the industry. This includes skill shortage and inability to transfer proper knowledge to the millennial who will carry on the mantle and others. This has reduced productivity, further urging the economy into a danger zone.
Social Services Demand
In a further twist of event, an aging boomer population adds little to no value to the economy other than requiring more social service demands like home care, healthcare, and other assisted living services that social workers must provide. This is another example of government expenses that must be funded regardless of economic state.
Reduced Consumer Spending
An aging population is a recipe for economic disaster; this is the reality of most boomers whose spending habits have completely changed from consumer goods to a more healthcare-essential service. This shift is a sign of economic slowdown that leads to reduced demand for certain products and a crash in such a market.
Housing Demand
It’s a general habit for boomers to downsize their homes or live in their retirement homes. This imbalance has worsened the housing sector, leading to increasing demands for certain types of houses and a drop in the other sections of the house. For instance, the issue of hyperinflation in rental housing sectors makes it difficult for most people to afford them.
Retirement Strain
It’s constitutional for the government at all levels to set aside a significant section of its budget to cater for retirees. This is essential to fund the retirement of the large cohort of retired boomers who feed off the government’s pocket, irrespective of the economic situation. The downside is that the more boomers retire, the more the government budgets for the retirement fund.