While Econo-Girl is on the topic of major forces that will shape our economy, our population is aging. Those baby boomers are going to dominate once again.
What does this mean?
Econo-Girl has been reading a book "Boomernomics" that calls for the mass destruction of society as a result of the demographic shift. While that thought appeals to Econo-Girl, it falls a little short in the analysis department.
The book states that Boomers will remove all their monies from the stock market, causing stock prices to plunge due to the lower demand for them. Well, isn't the price of a stock supposed to be the present value of future dividends? The removal of cash may put an end to crazy speculative bubbles, but it shouldn't have that adverse an effect on stock prices.
The ones that will really clean up are the professionals just under Boomer age. There will be a vaccuum at the top as all these people leave and not enough people to fill the slots. The same is going to be true in South Africa in about five years. I keep telling Leisure Lad that we should move there, but he won't have it.
Health care and elder care industries will EXPLODE! Econo-Girl herself is thinking of hanging up the old keyboard-for-hire and opening an elder care business. Will she have the courage? Astute readers with their feet on the ground have warned of the pitfalls.
I think it is sad that we provide health insurance for elderly but not for people under age 12. And all the new technologies for elderly instead of taking care of our young. Rather selfish, I think.
Econo-Girl is in favor of universal health care for all under the age of 12. There, I said it. At least start with under six.