While the cyclical outlook looks bright, the U.S. will be hampered in the longer term by such structural headwinds as an aging population, a plateauing of educational achievement and increased inequality, Gordon said.
I have always found it strange that my more conservative friends seem to want to see all Democratic administrations fail in one regard to another. They always say that their Republican heroes did it better than any Democrat ever could. When they mention this I just love to pull out the statistic that shows if you invest $1000 in only Republican administrations since 1940 you would now have about $1400 but if you had invested in only Democratic administration it would be $10,000.
I am getting off topic here. What I really intend this post to be about is this very slight quote from the article. Here again some financial author over at Bloomberg want to blame us old folks for keeping our economy from blooming. They say an aging population is partly to blame. I could see that if they went further to say that the reason for this is that all those people who really understand how to create prosperity are retiring and there is no one qualified enough to replace them. Now, before all you guys start jumping on me for this statement please realize that it is said in jest but I expect there is an ounce of truth in that statement. The younger generations just haven’t been tempered as much as we were.
The other reason given is the plateauing of educational achievement. What that really means is that the kids today are just not going into the necessary advanced fields of education to achieve real prosperity. And of course the last thing on the list above is a very serious one for me. Increase inequality is something that has gotten me very fearful of the future. The one thing that I am convinced has made the U.S. great over the last century is equality of condition. That is, there is no aristocracy that gobbles up the majority of our produced wealth. Of course we all know that has been changing greatly over the last thirty years or so. If we can’t turn that around we may just all be in trouble when it comes to our longevity. Teddy Roosevelt took down the robber barons a century ago but there just doesn’t seem to be anyone like him to be found this time around. At least not yet….