The Baby Boomer Catch 22

By on August 17, 2010

Mark Whitehouse, of The Wall Street Journal, has written a very interesting article regarding the plight of many of the baby boomers. Census Bureau statistics show that older Americans cut back on expenditures of most things except healthcare. This spending slowdown could stifle the economic recovery, reducing stock market returns, and in a vicious cycle hurt boomers balance sheets.

As of 2008, the latest data available, people aged 65 to 74 were spending 12.3% less than they did ten years earlier, in inflation-adjusted terms. They cut spending on cars and trucks by 46%, household furnishings by 35% and dining out by 27%. At the same time, they spent 75% more on health care and 131% more on health insurance.

Source: The Wall Street Journal

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