Are ageing and the economic slowdown linked?

Washington

AN ageing America reduces the economy's growth - big time. This is the startling conclusion of a new academic study, and if it withstands scholarly scrutiny, it could change our national political and economic debate.

We've known for decades, of course, that the retirement of the huge baby-boom generation - coupled with low birth rates - would make the United States an older society. We have also known that this would squeeze the federal budget. Social Security and Medicare spending would grow rapidly, intensifying pressures to cut other programmes, raise taxes or accept large budget deficits. All this has come to pass.