Saturday, November 20, 2010

The Greatest Generation Goes Greatly Into Debt

The Greatest Generation saved the world from fascism but didn't save enough for retirement.  That's why they have to go into debt to maintain their lifestyles:

Retired Americans are racking up credit-card debt like never before, be it for vacations or medical expenses, and a surprising number have no intention of paying it off before they die.

Several generations of middle class entitlement programs have taught Americans the value of a free lunch.  The trouble is that Social Security and Medicare aren't enough for people who've been conditioned to think that their living standards should keep rising into their golden years.  I can't even begin to understand the mentality of people who feel entitled to buy luxuries but refuse to save enough to afford them. 

It's too bad the Baby Boomers saved even less for retirement than their parents did.  They'll be left with nothing when Grandma's estate is liquidated at auction to pay the credit card bills she ran up on her last trip to Paris.  C'est la vie!  Indeed. 

Our political leadership will never be able to force austerity measures on an audience like this.  That's why they're willing to let the Fed be the bad guy by inflating away the government's unfunded liabilities.