Baby Boomers Amass Wealth While Younger Generations Face Economic Challenges
In a stark economic revelation, Federal Reserve data from Q3 2023 has highlighted a growing wealth gap between baby boomers and younger generations, with Americans over the age of 55 now holding a staggering 72% of the nation’s wealth.
The Heritage Foundation economist, E.J. Antoni, explained the trend, stating, “Young persons who haven’t had the time to save money and to buy a home, they are not seeing that same kind of increase in wealth. But [for] existing homeowners, it has been an absolute boon for them.”
The data shows that those above 70 years old own 30% of all wealth, experiencing the most significant gain in the past year at $3.57 trillion. The aging population has also increased, with about 2.3 million more people over the age of 70 in the U.S. since 2019.
On the flip side, younger generations, including Gen X, millennials, and Gen Z, all under the age of 55, have faced stagnant growth, as indicated by the Fed data. The 25% of American households aged 40 to 54 own just 20% of the nation’s wealth, while those under 40 own less than 7%. Combined, these two groups represent 53.3% of all households but possess only 27% of the nation’s wealth.
The economic disparity is further underscored by the impact of the post-COVID era on older Americans. FOX Business’ Gerri Willis reported that the strong stock market and rising housing valuations have significantly benefited this demographic. However, these older Americans have also had decades to reap the rewards of stock investment and homeownership.
The economic challenges faced by younger generations, including inflation, increased credit card debt, and insufficient savings for emergencies, have prompted concerns among experts. Former Senate Judiciary Committee senior adviser Garrett Ventry highlighted the dissatisfaction of young voters with the economy, citing issues like inflation and financial instability as contributing factors.
A recent FOX poll aligns with these concerns, showing that younger voters are gravitating more towards former President Donald Trump over President Biden by 13 points, with the economy cited as one of their primary concerns heading into 2024.
Ventry emphasized the economic factors contributing to this political shift, stating, “Young people are in more credit card debt than ever in terms of retirement. They just have less saved for basic emergencies like medical bills, car repair, those types of things.”
As the nation grapples with this widening wealth gap, the economic landscape is emerging as a crucial factor in shaping political preferences, setting the stage for potential shifts in the upcoming elections.
