SHAKE YOUR ASS-ets, baby! That's the theme of this new series I'm writing over in Long Beach, CA.
Depression Economics
Grandpa Economics or Depression Economics starts off with the theory that you go to school, study hard, get a good job, save up money, buy a home and pay it off, save more money, retire, and live debt-free on a pension and/or social security. That was a great plan for our grandparents. They are often referred to as "The Greatest Generation" and I don't wish to take away from their many accomplishments. They lived through the Depression, fought the war, built the roads and ports in our state, and were the backbone of our country. These children of the Depression put Long Beach on the national map!
So why would I suggest that this thinking is wrong for the middle class of the new millennium?
Boomer Economics:
Baby Boomers have had a profound impact on America, as consumers. One economist described that impact like
"watching a basketball pass through a python". Everything the Boomers touch goes up in price. Look at all of the elementary schools built in the 50s and 60s. The cost of a college education skyrocketed from 1975-1995 because of their impact. Housing rose during the 80s as they bought their nests, stocks in the 90s as they invested their 401-k accounts, and real estate in the first half of this decade as they purchased their vacation/retirement homes. Health care has steadily increased in costs during the past 15 years as the Boomers have aged and acquired aches and pains.
Now, the Boomers are getting ready to retire and everyone is concerned that they'll drain the Social Security system. I wouldn't
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