The future looks a bit bleak

It just seems to be dawning on economists, and maybe even politicians, that the huge budget deficits that the Western World has been amassing is going to be made worse as the boomer generation start retiring in increasing numbers. This both reduces the tax-take and increases the level of state spending on pensions and health services. A real double whammy. Mr Greenspan certainly seems to have got the message, if the coverage in the press is to be believed.

Governments have few remedies to this problem – cutting spending - increasing tax – or both. The knock-on effect of this would be depressed consumer demand and all of the horrible things that marketers prefer not to think about. Worrying.