Live Updates > Live Update Details
2026-02-19 08:46:50
[A Quiet Shift in the Power Structure of the US Economy – The Elderly Become the “Dominators”] (1) Driven by multiple factors such as population structure and asset appreciation, the dominance of the US economy is shifting significantly towards the elderly. Data from the Federal Reserve shows that as of the third quarter of last year, stocks and funds held by people aged 70 and above accounted for 39% of total household holdings, far higher than 22% in 2007; their net worth also rose from 20% 20 years ago to 32%. This trend is due to the large-scale retirement of the baby boomer generation, the long-term rise in asset prices, and the improvement of the social security system. In 2022, the average net worth of people aged 65 to 74 increased by 178% compared to the same age group in 1989. Despite the wealth gap, thanks to social security and medical insurance, the poverty rate of the elderly is far lower than the overall level, and their health status and life expectancy continue to improve. (2) The elderly have become a key force influencing consumption, employment, and fiscal policy. All of the net new jobs created in the US in the past year came from the healthcare industry, reflecting the needs of an aging society. However, the labor force participation rate of people aged 65 and above has not recovered since the pandemic, exacerbating the contradiction between labor supply and demand. (3) On the fiscal front, both parties continue to expand welfare for the elderly, with related spending growing far faster than investment in children. The Congressional Budget Office projects that spending on senior programs as a percentage of GDP has risen from 6.9% in 2007 to 9.4% last year, becoming a major driver of the budget deficit. The Social Security Trust Fund is projected to be depleted by 2032, posing a threat to intergenerational equity.
