Mr._Graybeard
Thinks s/he gets paid by the post
- Joined
- Apr 18, 2011
- Messages
- 2,978
I've always thought that age demographics had a role in economic cycles. And some Fed economists have reached a similar conclusion, according to this WaPo article: https://www.washingtonpost.com/news/wonk/wp/2016/10/07/theres-a-devastatingly-simple-explanation-for-americas-economic-mess/?wpisrc=nl_draw2&wpmm=1
Not only are we near the tail end of the Baby Boom population bulge, but people are living a lot longer than they used to. With that abundance of less economically productive people to support, it's harder to maintain healthy growth rates.
From the article: "In the last decade, the effect of these trends has become even more pronounced, (economists) say, as more boomers have retired and effects of the IT boom have faded. And their model suggests that low interest rates, low economic growth and low investment are here to stay, since America’s working population is not set to grow much in coming decades. Other countries in Europe and East Asia, are undergoing similar transitions, with rapidly aging populations, too."
Not only are we near the tail end of the Baby Boom population bulge, but people are living a lot longer than they used to. With that abundance of less economically productive people to support, it's harder to maintain healthy growth rates.
From the article: "In the last decade, the effect of these trends has become even more pronounced, (economists) say, as more boomers have retired and effects of the IT boom have faded. And their model suggests that low interest rates, low economic growth and low investment are here to stay, since America’s working population is not set to grow much in coming decades. Other countries in Europe and East Asia, are undergoing similar transitions, with rapidly aging populations, too."