Boomers' $90 trillion wealth fuels U.S. spending in a new ‘G-shaped’ economy
Wall Street analyst Ed Yardeni says the surge in consumer spending is driven mainly by baby boomers, whose $90 trillion net worth now underpins roughly 70 % of U.S. GDP.
In a note released early this month, veteran analyst Ed Yardeni introduced the concept of a G-shaped economy, arguing that baby boomers, not a class-based K-shape, now drive most U.S. consumer activity, which represents about 70 % of GDP. He points out that boomers control nearly $90 trillion in net worth—about 52 % of all household wealth—and dominate holdings of stocks, mutual funds and real estate, giving them the capacity to sustain spending even as interest rates rise.
Their sizable money-market fund balances, roughly $3.1 trillion, generate higher income as rates climb, whereas younger Americans encounter higher borrowing costs and limited housing options. The Silent Generation’s forthcoming $20 trillion transfer will further bolster older-generation wealth. While boomers are helping some millennial and Gen Z families with down-payments, a Visa Business and Economic Insights report warns that the eventual bequest will be only $36 trillion after accounting for debts and expenses, suggesting limited long-term financial flexibility for the older cohort.
Why it matters
Understanding which generation fuels spending helps gauge future economic resilience and policy impacts.
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