As the baby boomer generation approaches retirement, their spending habits remain exuberant, buoying the economy. In stark contrast, younger individuals experience declining expenditure patterns. A primary catalyst for this disparity lies in the burden of student loans, set to make a comeback later this year. While boomers revel in their financial freedom, the younger generation grapples with mounting debt, curtailing their spending power.
Boomers’ inclination for frivolous spending serves as a crucial stabilizing factor for the US economy. Their willingness to splurge on non-essential items and experiences injects vitality into various industries. From luxury goods to leisure activities, boomers’ extravagant purchases create a ripple effect, bolstering businesses, employment opportunities, and overall economic growth.