Since hearing a lecture by Laurence Kotlikoff, author of The Coming Generational Storm, it’s been pretty clear to me that:
- The political future of the United States is going to be colored significantly by generational conflict, with the needs of the various generations pulling the country in very different directions.
- My generation, Generation X, is basically totally screwed in such a conflict because, among other things, we are flanked by generations that are much larger than us.
One battle in this generational war is almost certain to involve social security and other entitlements. In the coming years, the Baby Boomers will do what they have proven over and over again that they do best: look out for themselves. Amid anti-aging treatments and doses of viagra, a good number of them will scream like hell at any attempt to reform the current entitlement system to their detriment and support any change that helps them, regardless of the long term cost. In spite of the fact that any such reform would have needed to start years ago to really be effective, their massive voting clout will ensure that it doesn’t happen at all, even when entitlements start unraveling.
And unravel they will, all over Generation X. By the time the Boomers die off, Gen X will be ready to reap the rewards of the giant Ponzi scheme that is social security, right when it starts to collapse. They will try the same tricks that the Boomers did to get what they were told was coming, but it won’t matter: not only will the money be gone, but Generation Y will massively outvote Gen X, and see to it that whatever comes out of the wreckage will benefit themselves, at the expense of Gen X. (To add insult to injury, a lot of the “moral justification” for this will probably involve a sort of “guilt by association” with the selfishness of the Baby Boomers.)
So, what chance does Gen X really have? Well, its best bet is to engineer (or at least hope for) some situation that radically reduces the voting power of the Baby Boomers. One sure thing that would do this is a massive reduction in their population. Since the Boomers have repeatedly shown a willingness to do nearly anything to avoid unpleasantness, or even inconvenience, it might be possible to manipulate them into extinction. With the right ad campaign and marketing, we could probably make
offing yourself for the benefit of the following generations “dying with dignity” cool enough that many would volunteer. An opening strike would be a campaign to eliminate laws against assisted suicide. If done right, we might even get some kind of trial Logan’s Run mandatory death law, that expires shortly after most of the Boomers.
None of this will happen, of course. So, if the Boomers themselves cannot be eliminated, the next best thing would be to severely reduce their spending power. They would still have the bodies to vote, but without a lot of cash, it may be possible to outspend them for political influence, even if their candidates get elected.
To do this, we’d need to generate some kind of economic situation where the Boomers are convinced to invest and save their earnings in certain ways and then, right when they retire, pull the rug out from under the markets to erode their investments. This is something of a “scorched earth” policy, as it would hurt everyone else as well, but Gen X would still have time to replenish their funds, while the Boomers’ sources of income would have dried up.
Engineering this would be a massive undertaking, but fortunately, it’s happening already. The silver lining of this whole economic downturn is that the massive market losses are eroding the wealth of the Boomers as we speak, right as they are starting to retire. This is especially true since many Boomers couldn’t afford to retire, even before the current downturn.
Gen X couldn’t have planned this better. And, to think; they called us slackers.
4 thoughts to “A silver lining. Sort of.”
But Generation X didn’t plan the housing meltdown. Arguably, that was the accidental doing of the boomers in power during the Bush and Clinton years.
So how would you recommend saving for retirement during these hard economic times? Buying gold and silver bars and burying them in your basement?
The best investment for x’ers? Microgeneration and young friends! Minimise your actual incomings at that age by generating as much locally as possible, and insure that you have good enough friends that they wouldn’t want to see you starve. Hopefully if everyone does this, then the younger generation will be willing to stump up food costs (via taxation), and you will have very few other ones.
Ok, a new idea! Short term, until the microgen research really kicks off (that market is going to deflate so fast it’s untrue), buy metal. Raw materials just before the point at which they become products, because then companies doing material processing and loosing jobs will instead process them for you, hopefully replacing a discrete change – less guys, with the more fine tuned lower profit. That way you get a smaller recession, and when people want to make stuff again you can sell it on. Just look after the stuff!