Survey Reveals Many Americans Plan to Work Indefinitely

A recent survey conducted by AARP has shed light on the declining living standards in America, particularly among those nearing retirement age. This contradicts the belief of many policy makers that the economy was experiencing a "soft landing" after two years of rampant inflation.

One Quarter of Older Americans Expect to Never Retire

The survey revealed that "more than one quarter of U.S. adults over the age of 59" expect to never retire. A quarter of these individuals have no retirement savings, while a third of "older adults" have credit card debt exceeding $10,000, with 12% holding a balance of $20,000 or more. These statistics were highlighted in an April 25 article in the Washington Times titled “More Than 25% of U.S. Adults Over 50 Expect Never to Retire.”

Rising Cost of Living to Blame

The study, conducted in collaboration with the NORC Center for Public Affairs Research, identified the rising cost of living as the primary reason for individuals' inability to save for retirement. However, the study did not delve into the root cause of this increase in living costs, and neither has the financial press, which has largely been supportive of the Uniparty.

Impact of Fiscal Policies on Retirement

The trend of Americans working past their retirement age has been ongoing for years, but it has accelerated under the Trump and Biden presidencies. The fiscal policies of these administrations, in collaboration with the Federal Reserve, have been a significant factor in why many Americans cannot retire.

The Role of Government Spending and Money Printing

Even before the onset of the Covid pandemic, the Trump administration was on track to become the biggest spender in U.S. history in just one term. The significant increase in government spending and money printing in response to Covid is now being felt.

Effects of Expanding the Federal Reserve's Balance Sheet

The Federal Reserve's balance sheet stood at $4.15 trillion before the Covid lockdowns in January 2020. By the end of Trump's presidency, it had nearly doubled to $7.3 trillion. Under Biden, the balance sheet rose to just under $9 trillion in mid-2022 before decreasing to its current standing at $7.4 trillion, according to the American Action Forum.

Understanding Inflation

Expanding the balance sheet means that the Fed issues more dollars and buys assets, mostly government bonds. This is essentially debt monetization. The increase in the money supply is the true definition of inflation, with rising prices being a consequence of inflation.

Solving the Rising Cost of Living

When asked during his re-election campaign about his plans to address the rising cost of living, Trump suggested increasing domestic oil production. While this would create jobs and bring more oil to the market, it does not address the issue of general price inflation, which is a monetary phenomenon.

Reversing Rising Prices

Rising prices can be reversed if the Fed increases interest rates or allows rates to be set by the market. Higher rates would encourage people to save, taking money out of circulation and putting downward pressure on prices.

The Need for Government Spending Cuts

Just as important, the government needs to cut spending and eliminate departments and programs, which would mean less money printing by the Fed. However, the likelihood of this happening in a presidential election year is slim.

Recovery Will Take Time

Even if the government and the Fed took the right steps and began to put the nation on a sound financial footing, it would take years to rectify the damage that has been done.

The Future of Retirement in America

Unfortunately, the Uniparty shows no signs of taking the necessary actions, and as economic conditions worsen, the number of people who must continue working indefinitely is likely to rise. As we reflect on these findings, it's clear that the state of retirement in America is in a precarious position. What are your thoughts on this issue? Do you agree with the findings of the AARP survey? Share this article with your friends and discuss the future of retirement in America. Don't forget to sign up for the Daily Briefing, which takes place every day at 6pm, to stay informed on this and other important topics.