Boomer Bust: How Will the Economy Rebound Without Post-War Babies Financing Their Harleys?

WASHINGTON — Baby Boomers have pumped up the global economy with their profligate ways for nearly two decades. It's been a great party. Now the music's over.

Generalizations about the 79 million people born between 1946 and 1964 are overdone and easy to debunk. Boomers went to Woodstock, voted for George McGovern and, so the thinking goes, cared deeply about the Rolling Stones. Boomers also helped put Ronald Reagan and fellow Boomer George W. Bush in the White House and turned Nashville into a cultural capital.

But what Baby Boomers of all persuasions have done, without dispute and to an unprecedented degree, is spend money instead of saving it. During the 1990s, Baby Boomers accounted for about half of all consumer spending in the U.S., according to a recent McKinsey Global Institute study. …

…Baby Boomers are rounding into the final laps of their careers largely untested and unprepared for what could be the worst economic crisis in their lifetimes. The sluggish 1970s and early 1980s overshadowed the college years and early work lives of the bulk of the Boom generation. But with a few mild hiccups, it's been easy riding since then.

Until now. Some economists and demographers say the Baby Boomers themselves are driving the current turmoil. As Boomers send their kids out into the world, they are entering the phase of life when income starts to fall, spending slows and houses get sold. The same generational heft that Boomers used to create fads for hula hoops, sport-utility vehicles and Harleys will now work against them as all of them rush to cash out and slow down at once. That puts more houses up for sale to far fewer buyers: a younger generation that is also less able to afford them. …

To: Voters Under 35

Subject: Your Future

Recommendation: Get Angry

You're being played for chumps. Barack Obama and John McCain want your votes, but they're ignoring your interests. You face a heavily mortgaged future. You'll pay Social Security and Medicare for aging baby boomers. The needed federal tax increase might total 50 percent over the next 25 years. Pension and health costs for state and local workers have doubtlessly been underestimated. There's the expense of decaying infrastructure — roads, bridges, water pipes. All this will squeeze other crucial government services: education, defense, police.

You're not hearing much of this in the campaign. One reason, frankly, is that you don't seem to care. Obama's your favorite candidate (by 64 percent to 33 percent among 18- to 29-year-olds, according to the latest Post-ABC News poll). But he's outsourced his position on these issues to AARP, the 40 million-member group for Americans 50 and over.  …