Which U.S. Generation Wields the Most Economic Power?
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Which U.S. Generation Wields the Most Economic Power?

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The Generational Power Index
The Generational Power Index
Introducing our new index, which ranks U.S. generations on their economic, political, and cultural influence.

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Which U.S. Generation Wields the Most Economic Power?

In our inaugural Generational Power Index (GPI) 2021, we’ve ranked generations on how much power and influence they hold in American society.

And when it comes to money and economic power, our research has concluded that Baby Boomers, those between the ages of 57-75, have more influence than Millennials, Gen X, and Gen Z combined.

GenerationEconomic Power Share
Baby Boomers43.4%
Gen X26.1%
Silent17.6%
Millennials9.7%
Gen Z3.3%

These findings may seem intuitive, but what exactly contributes to economic power? To find out, let’s take a closer look at the GPI’s underlying variables.

The Building Blocks of Economic Power

Our starting point was to define the age ranges of each generation:

GenerationAge range (years)Birth year range
The Silent Generation76 and over1928-1945
Baby Boomers57-751946-1964
Gen X41-561965-1980
Millennials25-401981-1996
Gen Z9-241997-2012
Gen Alpha8 and below2013-present

Using these ranges as a framework, we then calculated our four underlying variables of economic power. Here’s what the distribution within each one looked like:

economic power category breakdown

The earnings variable represents the median weekly earnings of full-time workers in the U.S., and was the most evenly distributed of the four variables. Gen Z had the lowest median weekly earnings ($614), while Gen X had the highest ($1,103).

Boomers established a clear lead in the second variable, net worth, which represents each generation’s share of overall U.S. wealth. As it turns out, Boomers hold 53% of all wealth in the country—more than all other generations combined.

The third variable captures each generation’s share of billionaire wealth, and was dominated by Boomers and the Silent Gen. We calculated this variable by starting with the top 1,000 billionaires globally, then filtering for Americans only.

The final variable, business leaders, is based on two underlying metrics: the generational share of both S&P 500 CEOs and small business owners. This enabled us to capture data from two sides of the business spectrum to see who holds power there.

Download the Generational Power Report (.pdf)

The Generational Power Index

Shifting Dynamics in Economic Power

America’s wealth distribution is not stagnant, meaning the balance of economic power shifts with each passing year. Keeping this in mind, here are two of the most compelling trends that we discovered while analyzing data for the GPI report.

1. Younger Generations Show Sluggish Growth

The following chart illustrates each generation’s share of household wealth over time.

GPI Share of US household wealth

It makes sense that Baby Boomers would hold the most wealth of any generation. They have had more time to accumulate assets, and the population of Boomers is roughly three times higher than that of the Silent Generation.

What’s more interesting, however, is the stark difference in wealth trajectories between Boomers and younger generations.

While Boomers entered the workforce in a prosperous post-WWII era, Millennials and Gen Z have either started their careers in the aftermath of the 2008 Financial Crisis, or in the midst of the COVID-19 pandemic.

To put it in perspective, when Baby Boomers were as old as today’s Millennials in 1989, they held 21.3% of U.S. wealth. That’s more than four times higher than what Millennials hold now.

2. Small Business: The 99.9%

America’s small businesses may not have the same scale as global corporations like Apple or Amazon, but they are an incredibly important part of the U.S. economy.

In fact, small businesses make up 99.9% of all U.S. companies, and employ one-third of the nation’s workforce.

Here is who runs small businesses, from a generational perspective:

GPI Share of Small Business Ownership

The 13% share held by Millennials may not sound too impressive, but it is one of the cohort’s strongest areas for economic power.

Looking forward, it seems entrepreneurship will grow into an area of strength for both Millennials and Gen Z, who are 188% more likely to want to create a side business compared to older generations.

Combine this with the fact that e-commerce adoption has been accelerating even faster than expected due to the pandemic, and it’s easy to see how younger, more tech-savvy generations could quickly expand their influence.

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Misc

All World Languages in One Visualization

See the world’s major languages broken down by country in this stunning visualization.

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All World Languages, By Native Speakers

View a high resolution version of today’s graphic by clicking here.

Languages provide a window into culture and history. They’re also a unique way to map the world – not through landmasses or geopolitical borders, but through mother tongues.

The Tower of Babel

Today’s infographic from Alberto Lucas Lopez condenses the 7,102 known living languages today into a stunning visualization, with individual colors representing each world region.

Only 23 languages are spoken by at least 50 million native speakers. What’s more, over half the planet speaks at least one of these 23 languages.

Chinese dominates as a macrolanguage, but it’s important to note that it consists of numerous languages. Mandarin, Yue (including Cantonese), Min, Wu, and Hakka cover over 200 individual dialects, which vary further by geographic location.

CountryNative Chinese speakers (millions)
🇨🇳 China1,152.0
🇹🇼 Taiwan21.8
🇭🇰 Hong Kong SAR6.5
🇲🇾 Malaysia5.1
🇸🇬 Singapore1.8
🇹🇭 Thailand1.2
🇻🇳 Vietnam0.9
🇵🇭 Philippines0.7
🇲🇲 Myanmar0.5
🇲🇴 Macau SAR0.5
Other6.0
Total1,197 million

Chinese is one of the most challenging languages for English speakers to pick up, in part due its completely unfamiliar scripts. You’d have to know at least 3,000 characters to be able to read a newspaper, a far cry from memorizing the A-Z alphabet.

Spanglish Takes Over

After Chinese, the languages of Spanish and English sit in second and third place in terms of global popularity. The rapid proliferation of these languages can be traced back to the history of Spanish conquistadors in the Americas, and British colonies around the world.

Animation: Map of Colonization (1492 – 2008):
Colonization Map

Today, Spanish has 399 million native speakers, but these are mostly concentrated in Latin America. English has 335 million native speakers under its belt, with a widespread reach all over the globe.

Two Worlds, One Family

While the visualization makes all the world languages seem disparate, this linguistic family tree shows how they grew from a common root. It also explains how languages can evolve and branch out over time.

Language Tree

Created by Minna Sundberg. Full version.

This linguistic tree also includes many languages that are not on the large visualization of 23 mother tongues. Some of them might be considered endangered or at risk today, such as Catalan or Welsh. However, with globalization, a few interesting linguistic trends are arising.

1. Language revival
Certain enclaves of marginalized languages are being preserved out of pride for the traditional and cultural histories attached.

While Catalan was once banned, its rebirth is a key marker of identity in Barcelona. More than 150 universities teach Catalan worldwide. In the case of Welsh, a mammoth university project plans to make sure it does not die out. Researchers are compiling ten million Welsh words to preserve the past, present, and future of the language.

2. Language forecast
At this point in time, English is the lingua franca – adopted as a common language among speakers with different mother tongues. However, this status might soon be fuzzier as demographic trends continue.

The rise of China is an obvious one to consider. As China continues to increase its economic might and influence, its languages will proliferate as well.

At the same time, 26 African countries are projected to double their current size, many of which speak French as a first language. One study by investment bank Natixis suggests that Africa’s growth may well bring French to the forefront – making it the most-spoken language by 2050.

Could French provide a certain je ne sais quoi that no other world language can quite replace?

This post was first published in 2018. We have since updated it, adding in new content for 2021.

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Demographics

Ranked: The World’s Fastest Growing Cities

Nearly 60% of the world’s population lives in cities and this trend is not slowing down—take a look at the world’s 20 fastest growing cities.

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fastest growing cities

Ranked: The World’s Fastest Growing Cities

By 2025, the world’s population will reach over 8.1 billion people.

Most of that population growth will be concentrated in cities across Africa and Asia. To help paint a detailed picture, this map uses data from the United Nations to rank the top 20 fastest growing cities in the world in terms of average annual growth rate from 2020 to 2025.

Full Speed Ahead

The majority of the world’s fastest growing cities are located in Africa—in fact, 17 of the 20 are located on the continent, with four of the 20 cities being located in Nigeria specifically.

Population growth is booming across the entire continent, as many countries retain high birth rates. According to the World Bank, the 2019 fertility rate (births per woman) in Sub-Saharan Africa was 4.6, compared to the global fertility rate of 2.4.

CityCountryContinentAnnual Growth (2020-2025p)
Gwagwalada🇳🇬 NigeriaAfrica6.46%
Kabinda🇨🇩 Democratic Republic of CongoAfrica6.37%
Rupganj🇧🇩 BangladeshAsia6.36%
Lokoja🇳🇬 NigeriaAfrica5.93%
Uige🇦🇴 AngolaAfrica5.92%
Bujumbura🇧🇮 BurundiAfrica5.75%
Songea🇹🇿 TanzaniaAfrica5.74%
Xiongan🇨🇳 ChinaAsia5.69%
Potiskum🇳🇬 NigeriaAfrica5.65%
Bunia🇨🇩 Democratic Republic of CongoAfrica5.63%
Tete🇲🇿 MozambiqueAfrica5.56%
Cuito🇦🇴 AngolaAfrica5.48%
Hosur🇮🇳 IndiaAsia5.38%
Abomey-Calavi🇧🇯 BeninAfrica5.27%
Nnewi🇳🇬 NigeriaAfrica5.18%
Malanje🇦🇴 AngolaAfrica5.17%
Mbouda🇨🇲 CameroonAfrica5.16%
Quelimane🇲🇿 MozambiqueAfrica5.14%
Kampala🇺🇬 UgandaAfrica5.14%
Goma🇨🇩 Democratic Republic of CongoAfrica5.14%

Nigeria’s economy is largely based on petroleum which has resulted in the country becoming one of the strongest economies in Africa. This, coupled with a high birth rate and a resulting young population, has given the country a strong and rising workforce.

However, the population growth in Nigeria is both a blessing and a curse. The success of the economy, among other factors, has resulted in excessive rural-to-urban migration. This mass exodus from rural areas has led to less farming, which means the country now needs to import basic food staples at a high cost.

In Mozambique, Tete and Quelimane are growing 5.56% and 5.14% respectively. The country is expected to experience strong economic growth after facing contractions due to the pandemic. Forecasts predict that the Mozambiques’s economy will grow 4% by 2022.

Implications of Fast Growth

All of the top 20 fastest growing cities are located in either Africa or Asia, and they are far outpacing growth on other continents, such as Europe, for example.

Fastest Growing Cities: Europe vs. Global

Europe's Fastest Growing CitiesGrowth RateWorld's Fastest Growing CitiesGrowth Rate
🇷🇺 Balashikha, Russia2.01%🇳🇬 Gwagwalada6.46%
🇷🇺 Tyumen, Russia 1.88%🇨🇩 Kabinda6.37%
🇦🇱 Tiranë (Tirana), Albania1.63%🇧🇩 Rupganj6.36%
🇳🇴 Oslo, Norway 1.38%🇳🇬 Lokoja5.93%
🇷🇺 Sochi, Russia1.33%🇦🇴 Uige5.92%
🇬🇧 Coventry-Bedworth, UK1.32%🇧🇮 Bujumbura5.75%
🇸🇪 Stockholm, Sweden1.25%🇹🇿 Songea5.74%
🇨🇭 Lausanne, Switzerland1.23%🇨🇳 Xiongan5.69%
🇷🇺 Krasnodar, Russia1.22%🇳🇬 Potiskum5.65%
🇷🇺 Surgut, Russia1.17%🇨🇩 Bunia5.63%
🇷🇺 Podolsk, Russia1.16%🇲🇿 Tete5.56%
🇮🇪 Dublin, Ireland1.12%🇦🇴 Cuito5.48%
🇬🇧 London, UK1.12%🇮🇳 Hosur5.38%
🇳🇱 Utrecht, Netherlands1.11%🇧🇯 Abomey-Calavi5.27%
🇸🇪 Göteborg, Sweden1.07%🇳🇬 Nnewi5.18%
🇫🇷 Toulouse, France1.07%🇦🇴 Malanje5.17%
🇸🇪 Malmö, Sweden1.05%🇨🇲 Mbouda5.16%
🇫🇷 Montpellier, France1.04%🇲🇿 Quelimane5.14%
🇫🇷 Bordeaux, France0.99%🇺🇬 Kampala5.14%
🇨🇭 Genève, Switzerland0.99%🇨🇩 Goma5.14%

By 2050, Sub-Saharan Africa will be home to close to 2 billion people and roughly half will be under the age of 25. This represents an enormous labor force and opportunities for innovation and growth. In fact, in navigating the pandemic, Africa is already starting to capitalize on digital advances in both traditional and new sectors.

China has its eye on Africa, as evidenced through their multiple investments in infrastructure projects in the continent. Additionally, NATO countries have recently committed to investing similar amounts in Africa to counter China’s influence.

In spite of the economic potential, increased city sizes could be problematic for some of these countries. They will need to adapt to the issues associated with mass urbanization, like pollution, overcrowding, and high costs of living.

Changing Tides

Population booms can lead to massive economic growth, a larger (and younger) working population, and a growing domestic consumer market.

As the aforementioned cities continue their rapid expansion, and as people continue to flock to growing megacities in Africa and Asia, it could represent the beginning of an important economic shift that is worth keeping an eye on.

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