Friday, August 23rd, 2019

How Millennials Impact the US Economy

Published on October 15, 2015 by   ·   1 Comment

BY HARRY DENT, ECONOMY & MARKETS DAILY:

I have three step kids. Two are generation X. The youngest is generation Y. Just looking at them, you can tell a clear difference in their personalities and aspirations. My older step kids are more individualistic. The younger one is more oriented to the group and collective interests.

It’s a fundamental difference that speaks by-and-large to both generations. And it’s a difference we need to understand given the troublesome economic climate we face.

You know that one of the major points of my research is that the millennial generation will neither fully replace nor surpass the boomers the way every single generation in history has before (not to mention the millennials are much smaller in most developed countries).

This is something most can’t wrap their head around, because the millennial generation is indeed larger than the boomers.

But they’re larger only in terms of total numbers. They started out with higher birth rates and their birth surge lasted longer. However, they never have peaks in births, adjusted for immigration, quite as high as the baby boom. In other words, this generation will never take us to new heights in stocks, in home buying or car buying or most sectors of our economy!

And that is more critical for their future economic impact.

The chart below comes from the seminal book Generations by William Strauss and Neil Howe. It shows how there are four broad personality types that emerge in two birth waves every 80 years or so. Here’s another point about generations most people don’t get. Strauss and Howe went back centuries to document their findings. Their research adds a social/political dimension to the economic cycles we’ve identified.

The Alternating Cycle of Generations

What this shows is that for every birth wave that is more individualistic, inner-directed, or me-oriented… another follows that is more conformist, outer-directed, or we-oriented. And each wave changes as it rises and falls.

At the start of the individualistic generation comes a rising and more dominant “idealist” group. In our case, this is the baby boomers, and the Henry Ford generation before them.

Then comes a declining “reactive” group, like generation X.

The idealists want to change the world radically. Throw out the baby with the bath water! Sex, drugs, and rock-and-roll! But they also bring about major revolutions like automobiles and personal computing.

Coming off that high, the reactives want to change the world and improve it in more practical terms, like with the Internet and global communities.

Read More HERE

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Readers Comments (1)

  1. Truh and very Educational




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