Why Do Boomers Own Everything? And Why It Could Get WORSE!
That meme, showing a bunch of old boomers dancing, never fails to make me laugh — both because it’s so accurate and because I’m only about 3 missed workouts away from looking exactly like the chubby bald guy in the sweater…
Why Do Boomers Own Everything?
recently published a short column with that exact title:
He pointed out that the boomer generation holds well over 50% of all American Wealth, while Xers hold around 15%, and Millennials own a mere pittance.
He also pointed out how the “top 10%” (mostly boomers) now account for over 50% of American consumption (a record not seen since 1929).
The reasons boomers have gotten so rich at the expense of everyone else, per Mr. St. Onge, include: (1) the growth in government spending; (2) the growth in government; and (3) the increased likelihood of Fed intervening to “save the economy.”
Government spending has doubled since 1990, fueling inflation that inflated the assets boomers purchased for 7 raspberries, at the expense of other generations who own far fewer assets and who must pay higher prices for everything else.
Growth in government resulted in far more regulations, per Mr. St. Onge, that made it much harder for small businesses (the source of much generational wealth) to compete against large businesses — so that too prevented post-boomer generations from building as much wealth.
Lastly, an interventionist Fed, dating back to the Greenspan era in the 1980s, has fostered inflation and asset bubbles through artificially low interest rates, financial asset purchases, and bailouts of hedge funds and banks.
The millennials at JVM are very upset about the unfairness of boomer wealth accumulation, and I hear about it often. But, the irony is that they voted for politicians who supported policies that disproportionately expanded boomer wealth.
“Trump Needs to Do Something; I Can’t Believe He’s Ignoring the Pain of So Many Americans!” (Why the Boomer Problem Could Get Worse)
A recession is likely to occur this year for many reasons, and when it arrives, many Americans will not only blame Mr. Trump but also demand that he take action to end it. And that is the fallacy that continues to expand boomer wealth. Americans falsely believe that politicians can stop recessions with low rates and government spending.
To be sure, governments can lessen the pain with unemployment insurance and similar measures. But, governments can’t stop the business cycle without slowing economic growth and sparking inflation that benefits boomers.
Mr. Reagan was likely the last President to not succumb to the pressure to “do something,” as he let the severe early 1980s recession run its course — and the economy boomed for years thereafter.
Both Bushes, Clinton, Obama, Trump 1.0, and Biden all seemed much more willing to embrace excessively low rates, spending, and/or bailouts.
It remains to be seen if Trump 2.0 can resist the pressure, but I am not holding my breath.
If Trump does succumb to the pressure, expect rates to shoot higher. The bond market will smell inflation, and demand higher yields.
Rates Fell Again Despite a Good Jobs Report
Rates fell again today in response to additional tariff news (China fighting back for example). Interestingly, there is a theory that Trump wants this tariff-recession because it will bring rates down, allowing the government to refinance our debt and massively stem the deficit.
And once that is done, he will loosen up tariffs, and we’ll see a boom… We’ll see 😊
The biggest thing to watch for is any type of tariff relief or trade deals emerging in the near term, as such news will likely send rates significantly higher (given how much the current tariff news is currently pushing rates lower).
Originally published at on April 4, 2025.
