Commentary

Blame The Boomers (Again)

We've all heard it by now.

Those self-centered, greedy Boomers got us into this Great Recession. Their spend now, save never attitude has bankrupted not only them, but everyone else. Soon, they will sell their McMansions in order to downsize to single-floor living, depressing the housing market for years. Next, they will bankrupt Social Security and Medicare. And recently, the Federal Reserve Bank of San Francisco reported in its Economic Letter that Boomers will likely cause a prolonged slump in stock prices through 2021 (yep, that's not a typo).

The esteemed New York Times writer, Thomas Friedman, went on NPR last week and laid full blame for America's decline on Boomers. According to Friedman, "We shifted from the Greatest Generation that operated on 'sustainable values' -- saving and investing -- and handed power over to the Baby Boomer generation who really lived by 'situational values' -- borrow and consume." Friedman (who is a Boomer) goes on to say "Baby Boomers have a lot to answer for. They have not followed in the path of their parents in terms of making the hard decisions, making the long-term investments."

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What a load of ... well, you know.

Seriously, was it really only the Boomer generation who didn't make hard decisions? The end of the Cold War saw the rise of a new American society and psyche based on seemingly endless opportunities. Friedman claims that's when we "put our feet up." But is the "we" only one generation? How about members of the Silent Generation, or Gen Xers, or even the young Millennials?

If you buy the blame side of the equation, then you better get ready to give the lion's share of the credit to Boomers for being the generation that is pulling America back to "sustainable values." That's right, more than any other generation today, Boomers are waging an economic revolution that will slowly but steadily shift societal views of economic success from what's happening on Wall Street back to what's happening on our streets.

Signs of this change are already showing up in the personal finances of Boomers and how they are consuming goods and services.

For example, Boomers are now hoarding their nuts rather than displaying them for all to see. How? The old-fashioned way, by prioritizing their needs over their wants and living on a budget.

That's what the monthly Consumer Intentions & Actions survey from BIGresearch shows. Once the Great Recession began, the majority of Boomers immediately began agreeing with the statement: "Over the last six months, I have focused more on what I NEED rather than what I WANT," and at a higher rate than do younger generations. More Boomers also agree they are "more budget conscious now" than do the younger generations.

We know it's easy to blame Boomers for, well, everything. But maybe it's the Boomer generation's ultimate legacy to shape a new ethos for our society -- responsible consumerism.

It seems the message of Depression-Era parents has finally taken root in the Boomer brain: save money and live within your means. Boomers account for only one in four Americans, but they are responsible for over two-thirds of consumer spending. If they consume in a more responsible manner, so too will others.

Marketing organizations should take note. This "new normal" puts emphasis not on keeping up with the Joneses, but on ignoring them. Consumers are worrying about their own financial situation. They know they have to be responsible. If not, then they'll only have themselves to blame.

But not Boomers.

6 comments about "Blame The Boomers (Again) ".
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  1. Jeff Smyth from Youth Unlimited GTA, September 12, 2011 at 9:40 a.m.

    We should be blaming the boomers parents not the boomers. Their parents were the ones who taught them everything and let them get away with everything. You have it right about what their generation will cause down the road but real blame should be on their parents.

  2. Paula Lynn from Who Else Unlimited, September 12, 2011 at 11:08 a.m.

    In the history of the world, boomers are a very new concept. In 1900, 50 years was the average life span. Adjustments for living longer are yet to be fully in place. We are told to work until 67 to retire while hiring those past 55 has become taboo. We have illnesses and escalating costly treatments to deal with them that did not exist 100 years ago. Re-evaluation is necessary and will be continuing to alter how to spread out our finances.

  3. Rich Carr from Carr Knowledge, September 12, 2011 at 1:37 p.m.

    Our firm targets Boomers specifically for clients who NEED them specifically, especially Boomer Men...the largest single buying group in our country. Your comments are spot on. The NEED versus WANT 'message' is one we've implored to great success. As per the 'blame', every 40 years society's pendulum swings back and forth and we're basically where we were in 1971, 1931, and 1891 all over again. It's not a generation thing, its a societal thing, with Boomers - as you said - being the easiest to measure because of their size. Great article.

  4. Janis Mccabe from jmod35, September 12, 2011 at 5:09 p.m.

    I'm a boomer as are all of my siblings. Maybe it was a lesson learned by observing our parents, but every single one of us is careful with our money and we know at least hundreds of others in our age group that are as well.

    Maybe someone should do a better, more thorough job analyzing "Boomers." I don't know any who live outside their means.

    Using the word "Boomers" as a perjorative is an easy escape for many in the media and in the finance world.

  5. Joe Buhler from buhlerworks, September 14, 2011 at 5:02 p.m.

    We should stop listening to talking heads like Friedman and his cohorts with their broad brush generalizations for anything that ails the world. He's just pushing his latest book and proceeds to fatten his wallet based on the principle of "there's a sucker born every minute" who are buying into all this mostly useless advice and are none the wiser after. Within every generation there are different types of people with different attitudes and behaviors. Oh, and by the way, us boomers we will have to dig ourselves out for a few more years before the younger generations will have to assist.

    The only one to blame you have to blame is yourself but that's part of the problem, playing the blame game instead of being self-responsible.

  6. Bruce Cotton from Ad Works, September 26, 2011 at 7:41 a.m.

    Friedman is dead on.

    One thing about narcissists.... they're never accountable. It's always someone or something else.

    We've consumed without regard to resources, and spent/bought simply for status - unlike any other generation.

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