Baby Boomers May Cause an Economic Tidal Wave in the US

Wednesday, 12 Feb 2014 11:24 AM

By John Morgan

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There are numerous reasons why the coming demographic tsunami is bad for the U.S. economy, according to the aptly named blog "The Economic Collapse."

How is the nation going to take care of all these old people?

The blog notes thousands of Baby Boomers, defined as the massive wave of those born in the post-war years 1946 to 1964, are retiring each day in the United States. The phenomenon will last for years.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

“It is the greatest demographic tsunami in the history of the United States, and we are woefully unprepared for it. We have made financial promises to the Baby Boomers worth tens of trillions of dollars that we simply are not going to be able to keep,” the blog predicted.

The blog cited a Bloomberg News story showing the U.S. government could be facing up to $222 trillion in unfunded liabilities in coming years, with Social Security and Medicare making up most of that fiscal cliff.

According to the Associated Press, about 56 million people received Social Security benefits in 2012, but the number of those eligible is projected to grow to 91 million in 2035.

Enrollment in Medicare, the government-run insurance program for the elderly, is expected to swell to 73.2 million in 2025, up from 50.7 million in 2012, The Week reported.

“Incredibly, the United States spends more on health care than China, Japan, Germany, France, the U.K.,Italy, Canada, Brazil, Spain and Australia combined,” The Economic Collapse claimed. “If the U.S. health care system was a country, it would be the sixth-largest economy on the entire planet.”

A Congressional Budget Office report last week cited the aging population as one of the reasons the nation’s fiscal deficit is expected to mushroom further, Business Insider noted.

On Tuesday, the House of Representatives voted to raise the federal debt ceiling through March 15, 2015. The Democrat-controlled Senate is expected to approve the measure, paving the way for President Obama to sign the measure. Only 28 Republicans joined most Democrats in voting for the House bill, which is designed to avoid a repeat of the fiscal cliff showdowns of recent years.

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

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