Retired persons often have much of their wealth placed in savings accounts and otherinterest-bearing investments, and complain whenever interest rates are low. Do they havea valid complaint?

Yes, retired persons do have a valid complaint when interest rates are low. Here's why:

1. Dependence on Interest Income: Many retired individuals rely on the interest from their savings accounts and other interest-bearing investments as a significant part of their income. This is because they no longer have a regular salary coming in and need to rely on their savings and investments to cover their living expenses.

2. Impact of Low Interest Rates: When interest rates are low, the amount of income that these individuals receive from their interest-bearing investments decreases. This can make it more difficult for them to cover their expenses and maintain their standard of living.

3. Inflation: In addition to the direct impact of lower interest income, low interest rates can also lead to higher inflation. This can further erode the purchasing power of the income that retired individuals receive from their investments.

4. Limited Options: Finally, retired individuals often have fewer options to adjust their investment strategies in response to low interest rates. They may be more risk-averse and less able to shift their investments into higher-risk, higher-return assets.

So, while low interest rates can stimulate economic growth and have benefits for certain groups (like borrowers), they can also have negative impacts on others, including retired individuals who rely on interest income.