January 1, Boomer Wealth Skyrockets as Younger Generations Struggle: Report

Baby boomers in the United States are growing older and wealthier, while younger generations are falling behind, according to recent data.

“Young persons who haven’t had the time to save money and to buy a home, they are not seeing that same kind of increase in wealth. But [for] existing homeowners, it has been an absolute boon for them,” said The Heritage Foundation economist E. J. Antoni.

Federal Reserve data from Q3 2023 reveals that Americans over the age of 55 now own 72% of the nation’s wealth, with those above 70 holding 30% of all wealth and seeing the biggest gain over the past year at $3.57 trillion. The aging population has also grown, with about 2.3 million more people over the age of 70 in the U.S. since 2019.

In contrast, younger generations, including Gen X, millennials, and Gen Z — all under the age of 55 — have faced stagnant growth. The 25% of American households aged 40 to 54 own just 20% of the nation’s wealth, while those under 40 hold under 7%. Together, these two groups make up 53.3% of all households but just 27% of the wealth.

The strong stock market and rising housing valuations in the post-COVID era have helped older Americans, who have also had decades to benefit from stock investment and homeownership. This comes as a new FOX poll shows younger voters favoring former President Donald Trump over President Biden by 13 points, with the economy being one of their biggest concerns heading into 2024.

Former Senate Judiciary Committee senior adviser Garrett Ventry commented on the situation:

“Inflation is tough. Their financial status is tough. Young people are in more credit card debt than ever in terms of retirement. They just have less saved for basic emergencies like medical bills, car repair, those types of things.”

He added that the economy is a “compounding issue for Biden,” with factors such as inflation, foreign policy, and the impeachment inquiry piling on top of each other.

Why It Matters (op-ed)

The widening wealth gap between baby boomers and younger generations is a glaring reminder of the failed policies implemented by the left. As boomers continue to accumulate wealth, millennials and Gen Z are struggling to keep up.

This disparity highlights the consequences of liberal economic policies, such as inflation and overregulation, which have stifled opportunities for younger Americans. The recent FOX poll showing younger voters favoring Trump over Biden by 13 points is a clear indication of their dissatisfaction with the current administration’s handling of the economy.

The left’s inability to create an environment conducive to wealth-building for all ages will only exacerbate generational inequality and fuel resentment among younger voters.

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