> And this is exactly what a bubble is - higher prices on financial assets, which means more assets per real dollar of future production. Exactly. Deflation (

> And this is exactly what a bubble is - higher prices on financial assets, which means more assets per real dollar of future production. Exactly. Deflation (financial asset cost inflation) now, for inflation (financial asset cost deflation) later, right? > Current misspending doesn't particularly impact future retirees. I agree with everything, except this part. Have we used all this surplus productivity to actually increase future productivity (invented some life changing gene therapy, cheaper transportation methods, better medical treatments, and so forth) and government used that debt to increase productivity as well (better infrastructure etc.), the quality of life would improve for everyone (including retirees), making the society as a whole spend more of their productivity voluntarily giving back more to the investments boomers bought with their savings. It didn't have to be a bubble if it delivered the value. The future inflation and capital reallocation from society to the retired could have been offseted by an increase in productivity, keeping everone's quality of life raise, or at lest not fall. But obviously, you can't pull ground breaking discoveries and great bussinesess out of the hat, and make government more efficient, just because there is more money to be invested. Quite the opposite. Surplus was mostly wasted and reallocation will have to come at the cost of the quality of life.