I covered this topic earlier in my essay on Boomers. This latest essay from Business Week further illustrates the impact Boomers have had on the economy.
- $400 Billion: Amount that will come out of annual U.S. consumption as thrifty boomers push savings rate from 1% to nearly 5%.
- 47%: Boomers share of national disposable income in 2005 before the bubble burst. Boomers contributed only 7% to national savings.
- 2.4%: Forecasted GDP growth over the next three decades as boomers ratchet back. GDP has grown 3.2% a year since 1965.
- 69%: Portion of boomers aged 54 to 63 who are financially unprepared for retirement.
- 78%: Boomers' share of GDP growth during the bubble years of 1995 to 2005
All of this will be evaporating as Boomers retire or attempt to retire. So long consumer spending bubble...