Retirees doing more cruises and eating out – others cutting back.
I’ve been saying for a long time that the dumbest thing you can do in America, tax-wise, is to work for wage & salary income. Once you enter the no to low tax realm of inherited wealth and the leisure-class taxation of investment income authored by conservative billionaires and supported by that poorest and most innumerate 35% of the population, life is sweet.
Why would anyone find this surprising?
The whole point of saving, investing, home ownership etc. when employed is to build a sufficient nest-egg to provide for your needs/wants in retirement. Which is where the boomers are now - retired and spending their money. Everyone else should be saving theirs.
Would it be better if retirees were dependent on their offspring and social services?
I think not.
There is a faction that holds that SS and Medicare be cut sharply back, and the elders be dependent on their spawn. “Traditional family values” they call it. Meanwhile, the money taken out of SS and Medicare could be handed to the “JCs” instead.
Looking back to my working days, my guess is that well over 90% of my co-workers, including management, were not investors, savers, and as they bailed, moved on, maybe had their homes partially paid off, but, hey, they drove new cars, kept buying toys… Hopefully they went on to other occupations, maybe picked up on what they needed to do, but I bet most didn’t have anything near what they should have in their later years… And even at that, I lost a ton by investing, hanging onto way too much of the company stock(s)… Know of a few others that also circled the drain, as well…
No easy answers, people blow it, every day…
The problem is somewhere south of 20% of people over 65 of age can afford to retire. The other 80% are dependent on everyone else. As some 40% of them spend the little savings they have that is going to get crushing. This is the aftermath of supply side econ.
This is the aftermath of failing to save and thus living beyond your means. Nothing to do with economic policy.
Another thread mentioned people not applying for mortgages at current rates. Of course not - if you can’t afford the rate, you can’t afford the home.
This is not a zero sum game but the table is extremely tilted against many Americans. Worse because of supple side econ policies our economy underperformed for 40 years. That cost 90% of workers very dearly.
You might not realize it but you are advocating $crewing up the US economy. You say and think you are doing the opposite. There have been no supply side policies that worked at all.