The dictionary defines gerontocracy as “government based on rule by elders.” After studying recent trends in household income, I conclude we have arrived at that point. Furthermore, our “elders” are essentially the lobbyists for the 37 million members of the American Association of Retired Persons (AARP).
Consider the charts below, based on the Census Bureau’s well-regarded Current Population Survey (CPS). I have emphasized median incomes, so that an equal number of households have lower and higher incomes than the median household in that particular age group.
Steady Growth in Income. Old folk, defined as those living in households headed by someone 65 years of age or older, typically draw on savings, in addition to income, to support themselves. They have seen their incomes increase at a remarkably steady pace throughout the last 30 years. Not even the nasty recession of 2008-2010 made much of an impact on them.
If we wanted to include Federal government outlays on Medicare in old folks' income (which the CPS does not), that would have added 65% or $524 billion in 2010 to their household income of roughly $800 billion. A more complete accounting would also include the numerous housing, nutrition, homecare, energy assistance and transportation subsidies for the elderly.
Going Nowhere. Meanwhile, the youngest households are going nowhere on the income scales, even while many try to pay off their staggering level of college loan debt. Despite the rise in mean (average) incomes, the median real income of such households, which numbered 6.1 million in 2010, has stagnated over the past several decades. In fact it was lower in 2010 than in 1990, a sharp contrast to the 15% gain for the old folk. Although not shown here, between 2000 and 2010 median real incomes fell for all income groups - except for the 65+ age group, which enjoyed a 7.5% increase.
These generational divergences are an unhealthy and worrisome trend. In effect, the older generation is squeezing younger generations via the iron fist of government via Medicare, overly generous pensions for its employees, and a multitude of elderly-oriented programs.
In short, the AARP, which stoutly defends every big and little government subsidy which benefits its members is doing a great job for its constituents. Maybe the Occupy Wall Street crowd should take its show to AARP headquarters at 601 E Street, NW in Washington, DC and ask the old folks to exercise a bit of restraint.
The dictionary defines gerontocracy as “government based on rule by elders.” After studying U.S. trends in household income, I conclude that not only have we arrived at that point, but that our “elders” are essentially the 37 million members of the American Association for the Advance of Retire Persons (AARP).
Consider the charts below, based on the Census Bureau’s well-regarded Current Population Survey (CPS). I have emphasized median incomes, so that an equal number of households have lower and higher incomes than the median household in that particular age group.
Steady Growth in Income. Old folk, defined as those living in households headed by someone 65 years of age or older, have seen their incomes increase at a remarkably steady pace throughout the last 30 years. Not even the nasty recession of 2008-2010 made much of an impact on them.
If we wanted to include in old folks’ income Federal government outlays on Medicare (which the CPS does not), that would have added 65% or $524 billion in 2010 to their household income of roughly $800 billion. A more complete accounting would add in special housing, nutrition, energy assistance and transportation subsidies for the elderly.
Going Nowhere. Meanwhile, younger folk are going nowhere on the income scales, even while they try to pay off their staggering level of college loan debt. The median real income of such households, which numbered 6.1 million in 2010, has stagnated over the past 20 and 30 year periods. In fact it was lower in 2010 than in 1990, a sharp contrast to the 15% gain for the old folk. Among the 45-54 age group, median real incomes fell 14% between 2000 and 2010.
These generational divergences are an unhealthy and worrisome trend. In effect, the older generation is squeezing younger generations via the iron fist of government via Medicare, overly generous pensions for its employees, or free public transportation.
In short, the AARP, which stoutly defends every big and little government program which benefits its members is doing a great job for its constituents. Maybe the Occupy Wall Street crowd should take its show to AARP headquarters at 601 E Street, NW in Washington, DC and ask the old folks to exercise a bit of restraint.