Even without the housing bubble bust and subsequent economic collapse, the United States and Europe would still be in for a prolonged period of slow economic growth, simply due to a demographic bubble known as the Baby Boom Generation.
The Baby Boom Generation, born between 1946 and 1964, is a demographic bubble caused by American and European parents producing large families after World War II.
This large Baby Boom Bubble is at it’s peak employment stage, at the same time that their children (Echo Boom) are entering the workforce, creating a larger than normal supply of labor in Western Economies.
Supply of labor exceeds demand, which causes higher unemployment, lower wages, and slower economic growth.
The Baby Boom Bust occurs, because as wages decline, so does the value of the Boomers largest asset – their house, Home values are tied directly to wages. Lower wages reduces the amount an individual can finance to purchase a home, and therefore, leads to lower home values.
Lower wages, caused by the over supply of Boomer labor, also leads to reduced consumption and government tax revenues. The other asset Boomers hold, stocks, go down in value as consumption declines. Government deficits increase, as tax revenues decline from lower wages, forcing cuts to Boomer retirement programs. .
Baby Boomers are caught in a vicious downward economic spiral.
It’s basic economics – the law of supply and demand. With more workers in the workforce, private and government employers can demand and receive, lower wages and retirement benefits. Layoffs, wage deflation, pension and retirement cuts, are how corporations have been able to remain profitable, and how governments have been able to balance their budgets, since the recession began in 2008.
So what is the solution? Early retirement. Because there is an over supply of labor, caused by the Baby Boomer demographic bubble, the solution to ending the recession is to reduce the supply of Baby Boomer labor. Baby Boomers need to retire.
Read: How Early Retirement Ends the Recession
With millions of Baby Boomers delaying their retirements, and more and more of their children (the echo boom) entering the workforce, the outlook for Baby Boomers is lower wages and reduced retirement benefits.
If Baby Boomers do not retire, Western economies will face two lost decades,two generations economically wiped out by demographics. Unfortunately, corporations and governments are only exacerbating the problem, by laying off workers, reducing their wags, and cutting retirement benefits. Many governments are raising the retirement age, which only prolongs the over supply of labor, and the pain and misery for workers of all ages.
Fortunately for Baby Boomers, Free Early Retirement Planning Software was created and launched to end the recession, by helping Boomers and everyone else retire early. Free Early Retirement Planning Software enables individuals and couples to retire when they want.
Learn: How and Why You Can Retire Early
Millions of Baby Boomers are needlessly working, or searching for jobs, when they could be enjoying an early retirement. If just two million Baby Boomers retire, the goal of Free Early Retirement, then the downward economic spiral can be reversed
Two million retirements will reduce the unemployment rate in the Untied States by one percentage point, creating an upward economic cycle resulting in higher wages, increased home prices, corporate profits and government tax revenue.
If you are a Baby Boomer who wants to retire early or who has been laid off, do yourself and everyone else a favor, by visiting our website to download our Free Retirement Software. It’s Free Early Retirement or bust for Baby Boomers.
Download: Free Early Retirement Planning Software