The Devil’s Bargain
Inflation for Stimulus
What does all this mean for Baby Boomers trying to grow—or at least protect—their savings so that they have assets to spend in later life when they can no longer work? The picture isn’t pretty:
- Over the next few decades, expect to pay 2 to 3 times as much in taxes per dollar of income you earn.
- Your investments will grow far more slowly, because the economy will be stagnant due to higher taxes and interest rates.
- Prices in general will rise faster than in the past few decades, with prices for goods and services consumed by the elderly rising the fastest.
These trends mean you will get to keep less of your income. In addition, your income’s purchasing power will steadily ebb.
Do not despair: ...