Name:
Location: Pantego, Texas, United States

Wednesday, December 31, 2008

The recent economic downturn appears to have been triggered by a housing bubble and excessive leverage by financial institutions. But there are some other long term factors that may have contributed, and that certainly will affect the economy in the near future. The first is that the baby boomer generation has started reaching retirement age. This will dramatically increase the number of retired persons in the nation. Then there is the large influx of aliens into the country, most of whom are poorly educated. This decreases the average level of human capital in the country. These factors combined will slow the recovery from the current economic downturn.

0 Comments:

Post a Comment

<< Home