Baby boomers, members of the wealthiest generation in history, are beginning to retire in record numbers. Though much has been made about the effect of that on workplaces, its effect on the economy could be even more profound.
Despite years of speculation over the next possible recession, the U.S. has avoided a slowdown largely due to consumer spending—and that’s being driven by older, wealthier Americans and their leisure activities, Ed Yardeni, chief investment strategist of Yardeni Research, writes in the Financial Times.
“The baby boom generation has started to retire with a record $76 [trillion] in net worth,” Yardeni writes. “They are spending on restaurants, cruises, traveling, and healthcare. All these services industries have been expanding their payrolls, thus boosting real incomes, and fueling more spending.”
Yardeni isn’t the first to note the baby…
