Of Pigs and Pythons

American Baby Boomers are defined as those individuals born 1946 through 1964.  Considering the aging hippie stereotypes this is an interesting demographic to study from a cultural perspective.  Assessing the economic impact if this huge cohort is equally interesting. In order to better visualize this population bulge moving through life’s successive stages one demographer colorfully described boomers as the pig moving thru the python

 
Consider this:  The world’s 65-plus population is presently at a historical high of over 600 million people.  It is projected to hit a full billion by 2030.  And 1.6 billion by 2050.  Joseph Coughlin of the MIT AgeLab - author of "The Longevity Economy" – suggests that longevity is "the biggest business opportunity of the 21st Century."   
 
The longevity economy is the emerging market to rule them all: the size of a new continent rising from the sea, populated with eager consumers but seemingly without the usual emerging market uncertainties. After all, the demographic seeds of our older future were sown long ago in the form of rising life expectancies, falling fertility rates, and (in many countries) a postwar baby boom now striding toward its later years.  

And unlike the risks associated with what we have come to know as traditional emerging markets - namely places like Brazil, Russia, India and China - Boomers are going to exert their economic influence in wealthy countries.   

The amount of money involved is mind-boggling.  In just the U.S. the spending of Americans ages 50 and up in 2015 accounted for nearly $8 trillion worth of economic activity.  According to the Boston Consulting Group by 2030 the spending of those age 55 and older will have accounted for half of all domestic consumer spending growth since the Great Recession.  Yikes!

I've never considered myself a member of an emerging market but it is a novel supposition and I suppose there is something to this.  And I rather like the notion of making an impact. 

So, take your love beads, tie-dye, anti-war protests, sex, drugs and rock n’ roll and stick 'em in your ear.  I’m raising a toast to the boomer demographic juggernaut passing thru the economic python... 

Cheers!