Think again if you are inclined to believe the booming heydays seen in the last few decades will be back again in the US. The facts point that the US has an aging population which is expected to drag on U.S. growth, and the hit could be substantial.
Output per capita in the US will likely take a hit as workers older than 60 make up more of the labor force.
According to a recent National Bureau of Economic Research study, the retirement of baby-boomers between 2010 and 2020 will lower GDP growth per capita by 1.2 percentage point a year.
In addition, the aging workforce could knock 0.3 to 0.6 percentage point off of growth over the next two decades as the workforce structure changes. The consequences when you draw extensions down the economic ladder is none too pleasing for consumption patterns in housing and other consumables.
Authors Nicole Maestas at Harvard Medical School, and Kathleen Mullen and David Powell at policy research group RAND Corporation, also did a study of the effect of a graying workforce on output, participation rates and productivity.