As Minnesota emerges from the recession, state demographers and economists are preparing for a “new normal” – though what that might entail remains uncertain.
But things don’t look good.
Tom Stinson, the state economist, said job growth will slow dramatically, to near zero by 2020.
“While we’re out of the recession, we’re not going back to where we were,” Stinson said.
The “new normal” also has a negative connotation for Mohamed El-Erian, an investment manager for PIMCO, a global investment company. He said the future of the United States will include a lower standard of living, high unemployment and heavier government intervention.
The United States’ biggest problem is an aging population, and things are no different in Minnesota, Tom Gillaspy, the state demographer, said.
The first baby boomers entered retirement age in 2008, at the onset of the recession.
“We are entering a period that demographers and economists have been talking about for decades called the future ‘age of entitlements,’” Gillaspy said, referring to heavy costs associated with providing social services for the growing number of senior citizens.
Read the full story at the Minnesota Daily.
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