The Impact Of Changing Demographics
We are seeing changing demographics affect our society like never before. Everything from healthcare to education is going to undergo a revision as we face a world with an aging population.
In the United States, the Baby Boomers and Millennials are the two largest age groups by number. The first is obviously entering retirement while the workforce is being taken over by the later.
Each of these groups has a different set of values, which will come out their how they use their power.
Presently, the Baby Boomers still have a great deal of power. the bulk of their wealth is still with them. Since they are living longer, it could be some time before that wealth is transferred to the Millennials.
When it does, it is an enormous amount of money. This is going to affect every facet of society.
For example, a recent survey by one of the Wall Street banks showed that Millennials preferred Bitcoin by a 9-1 margin over Gold. This means that, in the future, as the Baby Boomers either die or liquidate their assets, gold could be in for a rough ride.
Technology is taking on a greater importance in our lives. The move to digital is only going to increase. Part of this is because of the demographics. The first half of the Baby Boomers, those 65-74 were not too technically inclined. They experienced a work career where it was possible to not fully embrace technology.
The second half, that which is still in the workforce, while not technologists, is somewhat more advanced. At least they do not fear technology thus are likely to use messenger applications or shop online.
Automation is going to comprise a larger part of the business world. The younger generation, as they move into positions of authority, are likely to move away from standard, outdated practices. This is going to be further stressed due to the pace of innovation and change companies will be facing.
Japan was ahead of the United States in terms of the aging of its population. Starting in the mid 1990s, the country has been mired in a deflationary deathroll. No matter what the government or central bank did, it could not combat this. Older people simply do not spend money like their younger counterparts.
The United States is at the doorstep of this. At the same time, the Millennials have a different view of ownership. They are fully embracing the As-A-Service model which pushes down personal ownership. This is also likely to throw the United States in an deflationary spiral.
Healthcare is going to require disruption since the costs, as they stand now, simply cannot be paid. Housing is another area that is likely to see great change as technology penetrates that arena.