Tuesday, January 15, 2008

Week 8, post b

In this section Alan Greenspan writes about the fact that the baby boomers are about to retire and what the world will face when the baby boomers retire. The United States right now doesn’t have a nearly adequate enough social security and medicare programs. With the national deficit where it is there a project this large might not get enough funding. Another issue involving the baby boomers is the fact that once they retire there aren’t enough workers to fill their position. This is going to create a great demand for labor. This will mean that most companies will be forced to raise wages. This then will then raise the standard of living. However with the shortage of labor companies will be forced to down size which means that most companies will lose money and some will be forced to close. The baby boomer retirement could take either path. There retirement could cause an employment disaster or a raise in the standard of living. But, which ever path that unemployment takes the United States will still have the issue involving social security and medicare. These two government funded programs need to be updated immediately otherwise we are just digging our hole deeper and just creating a bigger problem for the future. At the current rate all of the baby boomers will be retired by 2030 so the United States has until then to get its act together otherwise were in for a terrible time.

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