Millennials Are the Future of US Economy
Whether you’re part of this generation or not, it’s no secret that Millennials typically receive a good amount of criticism in the media. They’re seen as self-centered, ill-informed and lacking a solid work ethic. Yet, there is mounting evidence that suggests they may actually be one of the most important factors where our economy is concerned, even if they don’t necessarily know it.
A Force to Be Reckoned With
In case you were unsure, Millennials are those who were born between the early 1980s and the early 2000s. Obviously, that’s going to be a lot of people, so it should come as no surprise that they already make up the largest percentage of the country’s workforce, according to many estimates.
Within five years, it’s expected that they’ll actually make up half the workers in the United States.
That’s not all either. They currently spend approximately $600 billion every single year. Even that amount is most likely on the rise. It could potentially double – or more – by 2020.
As you can see, this group is growing by leaps and bounds, but that’s not why they’re going to become so important to the future of the U.S. economy.
With each passing year, this generation is gaining in spending power. The same can be said for their earning capacity too.
This shot in the arm to their share of consumption may greatly help the country’s economy, resolving many of the current challenges that are hampering growth.
That doesn’t mean Millennials will act as an economic Rosetta stone, though. It will take another 10 to 15 years before most of them will reach the height of their earning power when they hit their mid-40s.
A Needed Economic Boost
On the other side of the spectrum, the Baby Boomers have begun hitting retirement age en masse. As such, the number of working-age Americans has been shrinking in recent years. At the same time, though, Americans are also living longer and requiring financial support as they age.
In fact, according to the United Nations World Population Prospects, over one in five U.S. resident will be at least 65 in 2050.
Therefore, the expanding wealth of Millennials cannot come at a better time. They outnumber Baby Boomers and are increasing both their earning and spending with each day that goes by.
There’s $30 Trillion Waiting for Them
If that wasn’t enough, Millennials are set to inherit a serious windfall as well. According to many experts, some $30 trillion is going to be passed down to them in financial and non-financial assets.
Hopefully, the fact that they’re also the most educated generation ever will go a long way toward ensuring those assets are used wisely as well. Considering that their education came with suffocating student debt, it’s easy to predict where at least some of that will go.
Don’t believe the hype when it comes to Millennials – while they are drastically different than any generation that has come before them, the above proves that they will also have the biggest impact on our economy over the next few decades.
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