Did the American economist Harry Dent correctly predict the recession, and is it really the fault of retiring baby boomers?
Dent popularised the ‘age wave’ theory through his research on “the highly predictable nature of consumer spending based on a family formation pattern”.
Some experts expect the worst consumer recession since 1980 to occur when ageing boomers start retiring, adding to rising unemployment, decline in house values, and declining stock prices. However other experts have suggested that immigration to the US and rise of emerging economies will offset the demographic impact.
The biggest ‘boom’ in baby boomer retirements started in 2007 and will continue ’til 2009.