First, it’s the fertility rate issue – 75% of the world’s population lives in countries where the fertility rate is below population replacement levels. This chart is for the U.S.
Second, the financial savings of many in the “Baby Boom” generation now represents what is already becoming the greatest transfer of wealth in U.S. history as older generations assist their adult children and prepare eventually for financial transfers via inheritance. Literally, an estimated US$30 trillion will be transferred to government (via inheritance taxes) and their adult children and grandchildren.
Third, there is a mistaken belief that everything in the past was rosy and easy.
- I graduated from college in 1980, coinciding with the largest ever cohort of young people simultaneously entering the job market (those born in 1960 +/-, 20 years later …).
- In 1980, the inflation rate was 13.5%.
- In 1980, the unemployment rate was 7.2%.
- When we eventually bought our first home, our mortgage interest rate was about 11 1/2%, with a 5 year balloon payment.
- During the 1960s, we grew up doing monthly nuclear war air raid drills at our school.
- In the ’60s to early ’70s, the US was drafting eligible young men (only men) for a war in Vietnam.
