La Baby Boomers

“I think some of the young people are starting to see the faults of the baby boomer generation and the mistakes of their parents. The cycle is only going to be broken with the true education of people in their teens and twenties and I think that’s slowly starting to turn around.”
– Mr. Young, a bankruptcy lawyer in Chattanooga for almost 30 years.

It seems that the generation of Baby Boomers had an excellent upbringing. Born between the years of 1945-1960, these children received a parenthood (from those, born 1920-1945, who were witnesses of one or more depressions as well as both world wars), that fed them with the knowledge of staying healthy (everyone has that grandparent who we all call a “health freak”), financial literacy (money managing, budgeting, saving) and a general respect to those who are due.

However , these boomers must have considered this education of little importance as they went on to live lives based on credit and consumption (both fiscal and edible) becoming the most debt laden generation in history. This was handed over to their children. Sayings like “Deficits don’t matter” and “Just eat!” taught the young ones that discipline is not necessary in a good life. Just live and enjoy! They brought up a generation of rebels who now as then oppose the War, who then as now have a hard time understanding the meanings of words like “depression” “deflation” and “credit contraction” (pronounced “Crunch”).

What we are about to witness, and this has been expressed by figures such as the Federal Reserve Chairmen of late, Chief Accountants, vintage Investors and economic sages the world over, is a shift of sentiment. A change in the in extremes with those that were born and lived through one of the greatest inflationary credit expansions in history. Realizing that rational policy does indeed exist they will revert from spenders to savers, from consumers to manufacturers, from a fiscal based economy to one of intrinsic value.

So we, Generation Next, continue to look at the older and less-wise, and wonder how long they believe the good times will roll. But listening to the good advise of the old-timers, the history that’s been around for centuries, we come to learn that these times do end and borrowing to live a better life today may not necessarily be fine in the long run.

But as John Keynes said “In the long run we’re all dead”.

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