As we mentioned a few weeks ago, boomers are finally getting fiscally responsible — just in time to screw everyone else. Cutbacks in spending by the largest age demographic in history will have a negative effect on the economic rebound. Gallup has put some numbers to the news, and this is how they stack up against other generations:
“Baby boomers’ self-reported average daily spending of $64 in 2009 is down sharply from an average of $98 in 2008. But baby boomers — the largest generational group of Americans — are not alone in pulling back on their consumption, as all generations show significant declines from last year. Generation X has reported the greatest spending on average in both years, and is averaging $71 per day so far in 2009, down from $110 in 2008. With baby boomers constituting the largest bloc of U.S. consumers, their spending habits have a proportionately greater effect on the economy, given that consumer spending accounts for about two-thirds of the total gross domestic product.
Some experts attribute the sustained economic growth of the 1980s and 1990s to the fact that baby boomers reached their peak earning (and spending) years during this time. As they now near retirement age, the concern is that baby boomers will pull back on spending to make up for the losses suffered in their retirement savings over the past year, hindering an economic recovery.”
The entire report can be found here.