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

Mapped: Top Trending Searches of 2021 in Every U.S. State

From presidential elections, to cryptocurrencies and billionaires, here are the trending searches in every U.S. state in 2021.

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Map of trending searches in every U.S. state in 2021

The Trending Searches in 2021

Google’s data editor Simon Rogers once said, “You’re never as honest as you are with your search engine. You get a sense of what people genuinely care about and genuinely want to know.”

This look at trending searches for every U.S. state is a window into the topics people were truly curious about in 2021. From political tensions to meme stocks, and from Elon Musk to a devastating tornado, we saw a wide range of trending searches throughout the year.

In the above animated video, Reddit user u/V1Analytics pulls together the top trending search terms from Google’s 2021 Year in Search summary (for the period before mid-November 2021) and Google’s Daily Search Trends page (from mid-November to December 20th) to illustrate the daily trends for each state.

It’s fascinating to see what Americans were looking up this year.

Trending Searches Offer a Glimpse of American Psyche

In the year when COVID-19 vaccines became widely available, many Americans turned to the world’s most popular search engine to figure out how to come back to a life of normalcy.

In 2021, the search entries spoke to people’s interest in alternative assets like cryptocurrencies and NFTs, as well as persistent economic insecurity, evidenced by questions about when they would get their stimulus checks.

Entertainers and billionaires trended throughout the year, and so did topics of significant cultural impact at those moments in time.

Here is a look at the trending searches of 2021 and when they were searched most:

TopicTrending MonthsCategory
BidenJanuaryPolitical Figure
CapitolJanuaryMonuments
Mega MillionsJanuaryCulture
GMEJanuaryGaming
DogecoinJanuary, April, MayCryptocurrency
The WeekndFebruaryEntertainment
ValheimFebruaryGaming
Power OutageJune, July, AugustSociety
Stimulus CheckMarchSociety
Lil Nas XMarchEntertainment
DMXAprilEntertainment
Prince PhilipAprilFamous Personalities
Jake PaulApril, AugustContent Creator
AMC StockMay, June, AugustEntertainment
Jeff BezosJulyBusinessman
Simone BilesJulyAthlete
AfghanistanAugust, SeptemberCountry
Hurricane IdaAugustClimate Change
Gabby PetitoSeptemberCrime
Squid GameOctoberTV Shows
Alec BaldwinOctoberActor
Travis ScottNovemberEntertainment
Kyle RittenhouseNovemberCrime
AdeleNovemberEntertainment
TornadoDecemberClimate Change
Elon MuskDecemberBusinessman

Notable Trending Searches in 2021

Here’s a look at a few of the notable searches that trended across the U.S. in 2021:

President Biden and Capitol

Unsurprisingly, the year started with news of the presidential election and the U.S. Capitol riot, as President Biden was set to take office.

In six states, however, the top trending search was still related to the Mega Millions jackpot, even as individuals stormed the Capitol Building.

Valheim

One of the most sought-after games of the year, Valheim, came on the market in February, 2021. By August, it had garnered over 8 million users. The developing company’s new Hearth and Home patch has skyrocketed the game’s appeal even more.

Stimulus Check

In March, the U.S. government unveiled their plan to distribute the third stimulus check to Americans.

People started looking for more information about when they would be getting their checks and if there had been any changes in the amount they would receive.

Dogecoin

Created in 2013 as a parody of Bitcoin, Dogecoin saw record trading levels in May 2021. This was in part due to Elon Musk supporting the cryptocurrency.

The Dogecoin market capitalization surged to a peak of $88 billion, worth more than three-quarters of the companies in the S&P 500.

AMC Stock

After suffering significant losses due to the pandemic-related shuttering of theaters across the country, AMC Entertainment became a fan favorite of Reddit-based retail traders who drove the share price up beyond what most analysts considered reasonable.

AMC’s stock price rose by 95% in a couple of days, reaching a record high of $63 per share. This was the latest phase of the meme stock frenzy.

Afghanistan

President Biden decided to completely withdraw U.S. troops from Afghanistan by September 11th, 2021, ending the longest war the country has ever fought.

As an immediate consequence of the withdrawal, the Taliban militia took over the country and the government. The event, which was broadcast in near real-time, caused widespread panic among the citizens as some attempted to flee the country.

What’s in Store for 2022

It’s going to be everyone’s best guess as to what the trending searches for 2022 will be. Based on the events that dominated the news throughout the year, a few predictions could be made.

Experts predict that we will be moving to an endemic stage of the pandemic, which is bound to profoundly impact how we live in 2022.

New trends, movies, TV shows, and even newer gadgets will surely catch everyone’s attention next year. It will be fascinating to see what’s on the minds of people in the coming 12 months.

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China

Animated Chart: China’s Aging Population (1950-2100)

See why China is facing a demographic crisis in this animated chart.

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China’s Aging Population Problem

The one-child policy defined China’s demographic transition for over three decades.

But to combat an aging population and declining birthrates, the government scrapped the policy for a new two-child policy in 2016. Despite this massive change, China still faces a growing demographic crisis.

The above animated population pyramid from James Eagle looks at the distribution of China’s population by age group since 1950, with projections up to the year 2100.

How the One-Child Policy Created a Gender Imbalance

Until 2016, the Chinese government strictly enforced the one-child policy since 1979 with hefty fines for any breach of rules. According to the government, the policy reduced 400 million births over the years.

However, it also led to sex-selective abortions due to a deep-rooted cultural preference for boys. As a result, China’s gender balance tilted, with a sex ratio of 111 males to 100 females in the population aging from 0 to 4 years old in 2020.

Often termed “the missing women of China”, this shortage of women is expected to worsen over time. According to the U.N.’s World Population Prospects, China is projected to have around 244 million fewer women than men in 2050.

Additionally, the country faces another impending consequence of the one-child policy—a rapidly aging population.

Why China’s Population is Aging

In 2020, China’s fertility rate—the number of children a woman is expected to have over her lifetime—stood at 1.3.

Generally, fertility rates drop as economies develop. However, China’s fertility rate is now lower than that of the U.S. (1.64 in 2020) and on par with countries like Japan and Italy, both of which are facing aging populations. Consequently, fewer newborns are entering the population, while many in the workforce approach retirement.

Most Chinese workers retire by age 60. Here’s how China’s retirement-age population is expected to shape up by the year 2100:

Year60+ Population% of Total Population
198074,899,3857.5%
2000129,460,64810.0%
2021258,371,81017.9%
2050485,489,06634.6%
2070454,270,45836.1%
2100402,780,97237.8%

In 2021, people aged 60 and over made up nearly one-fifth of the Chinese population. As the country’s population begins declining around 2030, over 30% of all Chinese people are expected to be in this age group.

China’s aging population threatens long-term economic growth as its workforce shrinks and low fertility rates result in fewer newborns that would later enter the working-age population. Fewer working people means lower overall consumption, a higher burden on elderly care, and slowing economic growth.

So, how will China respond to the oncoming crisis?

The Three-child Policy

According to the 2020 national census, Chinese mothers gave birth to 12 million children in 2020—the lowest number of births since 1949.

In response to these results, the government passed a new law allowing each couple to have up to three children. Despite the change, the high cost of raising a child may deter couples from having a third child.

It remains to be seen how the three-child policy helps combat China’s demographic crisis and which other policies the government chooses to deploy.

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