The older are getting richer on the backs of the poor. How? Rich people who don’t need government services get them whether they need them or not. Medicare and Social Security isn’t a safety net for the poor, it’s a cash cow for many people who already have money.
Where does this money come from? Younger workers who don’t have the money to pay off student loans, buy a house, or save for their retirement.
In documenting a rising age gap with regard to economic well-being, the authors compare households headed by adults over age 65 to households headed by adults younger than 35. They examine data over time–particularly from 1967, 1984, 2005, and 2009-2010. (The comparison between 2005 and 2009-2010 illustrates the impact of the Great Recession.)
Here are some of their conclusions:
• From 1984 to 2009, the median net worth of older households rose 42%. For younger households, it declined by 68%.
The author of the post ends on a high note, saying that more young people have college education and says that the education translates into higher income potential.
My thought is that college education is worth less now, too. Basically, college education is what a high school education used to be. I see the very intelligent and innovative foregoing college and working right out of high school–often in the tech industry. Some professions will still benefit from education, but I see an impending burst bubble there, too.
Bottom line, the way things currently are, the Baby Boomers will hoover up all the revenue and incur tremendous debt that will cause the younger generation to transfer their wealth to pay the tab.