Bwaaahh Haaaahh Haaaaaa
Yesterday I got accused of blogging from another planet. Then I read this. The gyst is that the Baby Boomer Generation is betting on the sale of real estate to fund their retirement. That's assuming some foresighted bankers don't look at all the aging Boomers and think, "No way in hell am I going to float a mortgage on a house that can only lose value". Boomers need to learn 2 basic rules of economics:
1 Price is directly influenced by demand
2 An item is only worth what someone is willing or able to pay for it
Who's going to buy all those houses when the Boomers start dieing off? Especially in those communities that are 55+ so that property tax is reduced if they don't allow children. Certainly not Gen X. There are about 10% fewer of us. To me that spells a 10% reduction in demand. I can't buy their houses from them and pay 10% more in social security taxes to support them. Perhaps they shouldn't have aborted 1/4th of my generation. There would be more sholders to support the burden.
Then again they did kill all the criminals.
1 Price is directly influenced by demand
2 An item is only worth what someone is willing or able to pay for it
Who's going to buy all those houses when the Boomers start dieing off? Especially in those communities that are 55+ so that property tax is reduced if they don't allow children. Certainly not Gen X. There are about 10% fewer of us. To me that spells a 10% reduction in demand. I can't buy their houses from them and pay 10% more in social security taxes to support them. Perhaps they shouldn't have aborted 1/4th of my generation. There would be more sholders to support the burden.
Then again they did kill all the criminals.
posted by Dean ASC at 4:25 PM
4 Comments:
Imagine if they hadn't aborted 1/4 of our generation*, there'd be a lot less stuff to go around; I was just thinking about oil & gasoline for the moment.
(* Hey, where'd you get that statistic anyway? We baby killers want to know.)
Don't worry, the nouveau riche from around the planet will be snapping up the slack. There is no place like here.
Freakonomics
Of course, what I leave out is that the generation that follows us is actually 33% of the population. So in the very long run things will eventually work out to our benefit.
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