Baby Boomers Ruined America?
by Tina Boomerina (Christina Gregoire)
Okay. I’ve had it! All over the internet, I keep seeing blogs entitled something like, "Baby Boomers Suck". Well, I'm a Boomer and I'm here to tell you that Baby Boomers did NOT ruin America.
Baby Boomers are not responsible for everything that's gone wrong in this country. We did not make home prices skyrocket. Sure, the price of any specific house is related to supply and demand, but a large portion of that price is also related to inflation; and Baby Boomers did not cause inflation. In addition, Baby Boomers didn’t cause the deficit; politicians did. Baby Boomers didn’t send jobs overseas; CEOs made those lousy decisions.
Do You Know What Inflation Is?
What is inflation? You think you know the answer, but you might be wrong. True inflation is not an “increase in prices” at the store or the pump. Inflation is an increase in the money supply.
No, I’m not an economist. If I were, I would give you a long-winded answer with complicated graphs, and I would make you doubt your ability to understand the obvious. In reality, I am just another smart Boomer who studied accounting for four years and learned the basics of macroeconomics. So, I want you to consider the idea that “price inflation” is not the same as true “inflation”.
Inflation Is an Increase in the Money Supply:
Inflation is the “printing of money” (even though an increase in the money supply has more to do with digital decimals and the lending of money - or the buying of the FED - than it does with any printing press). Inflation is an increase in a fiat currency, often exacerbated by no corresponding increase in productivity.
Why The Powers That Be Print Money:
When "The Powers That Be” print more money, they are hoping to trick you into thinking you are richer than you are. The ruling class has always calculated that their “quantitative easing”, or “stimulus money”, or easy credit terms will put a burr in your butt and make you go out and buy more stuff than you normally would. And, if the government can get enough of you to buy more goodies, their hope is that the economy can be slipped out of any slump.
- Here's a somewhat boring example of a Baby Boomers Suck rant... in case you've never come across one. But, please come back to Boomerinas.com so I can explain why Baby Boomers are not the problem... well... a Baby Boomer who also happens to be a lobbyist might be a problem.
When people feel that they are wealthier than they were the day before, because they have bigger numbers in their checking accounts or some real estate wonks say they have more equity in their homes, those people are more willing to bid higher prices for whatever it is they want. In this case, we’re talking about houses. And, that’s what happened. Over the lifetimes of the Baby Boomers, our ever-increasing money supply has greased the way for some ridiculous increases in the prices of houses.
Factors Other Than Inflation:
To be fair, there are other factors that have affected the prices of houses over the last 40 years. Two of them are:
- The sheer number of Boomers who all wanted to settle down and have families at, approximately, the same time.
- The idea of “hurry up and buy” before prices go up.
But, I want all of you Gen X-ers to know that we, Boomers, did not want to pay small fortunes for our crappy, suburban bungalows. The price increases (that we were forced to endure) were part of a rolling dice game, where we were the victims, not the champions of high home prices…and a large part of those increases were artificially created by inflation.
Did Boomers Want High Home Prices?
Most of us Boomers did not really benefit from higher house prices…we just watched our taxes go up. And, I don’t know about you, but no one asked me if I wanted the Fed to print more money…and to spark round after round of inflation over the past decades.
On a related subject, when you say that Baby Boomers caused the housing market to tank, you are wrong, again. Yes, some Baby Boomers, somewhere, decided to push high-risk loans in order to make some tidy profits. And, some Baby Boomer politicians demanded that bankers give out sub-prime loans, to increase the happiness quotient of their constituents. However, most Baby Boomers were (and still are) sitting around scratching their heads, just like you, asking, “What the flunk happened?”
Back to the Price of Houses:
When you blame Baby Boomers for an increase in the price of houses, it’s like blaming mankind for the price of houses. Yes, there are a lot of Baby Boomers, and in aggregate, we can start and stop trends…but, I think that inflation had just as much to do with skewing housing prices (over the last 30-40 years) as Boomers did. So, blame the people who control the currency, not the Baby Boomers.
Did Baby Boomers Cause the Deficit and the Debt?
Boomers did not cause the deficit or the debt. The answer to this question is almost exactly the same as the answer to the query about who caused the prices of houses to jolt around.
If the government had come to me and said that they couldn’t pay their bills, I would have told them to stop spending so much money.
I am not a corrupt Keynesian. I would not have told the government to print more money to make their payments. I would not have told the government to borrow more money. But, guess what? Only politicians and their buddies get to decide how much money the government spends. Sure, a lot of those politicians are Baby Boomers, but most Baby Boomers are not politicians.
And, when we are on the subject of those future social-security recipients and their evil, Boomer entitlements, which are expected to suck the country dry, why are you not asking where the social-security trust-fund monies went? Come on. The fact that these “trust funds” are off budget, should be enough to tip you off. Once again, the culprits are not the Baby Boomers who paid into these funds for years. Stop blaming the victims.
Baby Boomers Did Not Destroy the Economy:
Baby Boomers did not send all of our manufacturing base overseas. CEOs of major (and smaller) corporations made those decisions. Baby Boomers didn’t send information jobs to India.
Instead, Baby Boomers were the victims. Boomers were the folks who lost their factory jobs and middle-management jobs. We, Boomers, have taken the brunt of it. We are the people who lost our jobs when we were too old to find new ones.
What’s the Answer?
America used to make everything. America used to make everything better than any other country.
We know that no major, powerhouse country can survive for long without manufacturing, without making something of value, without pulling exports out of the ground. And, we are going to do whatever we can to continue being producers and to continue finding answers…until we are satisfied that the US is limping back onto the right track.
So, stop complaining, join us, and come up with some solutions that you didn't read off a bumper sticker on the back of some hybrid.
What do you think of this article? Leave a comment at the bottom of the page if you like this website... even if you disagree with my stand on this subject. Thanks.
More Articles About Baby Boomers:
Leave your comments at the bottom of the page. They won't show up until I approve them.