Baby Boomer Demographics

Defining Baby Boomer Demographics

After the end of World War II the United States experienced an explosion in its birth rate.  The children born during this time are referred to as Baby Boomers.  While the exact time span covered by the Baby Boomer generation is open to debate most researchers agree that Baby Boomer demographics begin in 1946 and extend into the 1960s.

The advent of widely available and easily used birth control in the early sixties is thought to have been the end of the high post war birth rate.  Some experts divide the Baby Boom generation into two groups.  Steve Gillon, author of Boomer Nation, refers to those born between 1946 and 1957 as Leading-Edge Boomers.  He calls the babies born from 1958 until 1964 Shadow Boomers.  Other influential people in the field break up the generation in a variety of ways.  Recently the term Generation Jones has become widely used to define the babies born after 1953 up until 1965. 

Common Characteristics of Baby Boomers

Many experts on Baby Boomers and many Baby Boomers themselves feel that this generation is more cohesive as a group than the generations that preceded or followed it.  One of the reasons that the Baby Boom generation has been such an object of research and speculation is its sheer size.  When taken as one group, United States Baby Boomers number more than 75 million people.  While this generation was growing up many American homes were more prosperous than ever before. 

Children born in the Boomer generation were often the center of a newly affluent family unit.  They had access to many educational opportunities that children of other generations did not.  Baby Boomers also felt a common bond strengthened through visual media such as movies but more particularly television.  For many of these children Howdy Doody was a common friend.  As they grew up many Baby Boomers shared memories of pivotal national events such as the assassinations of John and Robert Kennedy and Dr. Martin Luther King, Jr. 

The Vietnam War was another binding agent amongst Boomers.  Later reaction to the same war would divide the generation.  Shared social characteristics of Baby Boomers were not the only ways in which they were similar.  Financial characteristics of Baby Boomers have had an ongoing effect on the economies of the United States and the world.

United States Feels Baby Boomers Effect on Economy 

Throughout their lives Baby Boomers have had a profound effect on the American economy.  When they were young, Baby Boomers caused an increase in public spending on schools and universities.  Within families parents lavished money on Baby Boomer children in unprecedented amounts.  Retail sales on educational items, sports, and clothing increased dramatically during the years of the Baby Boomers adolescence. 

As young adults Baby Boomers continued to spend generously on themselves.  Now as many older Boomers move into their sixties and edge toward retirement age they are proving to be both a boon and a bane to the United States economy.  In many ways Baby Boomers continue to have a positive effect on the economy.  As individuals they invest heavily in the stock market.  Their retirement accounts also fuel an enormous amount of institutional investing.  Baby Boomers as a whole have more disposable income than almost any other demographic group.  It is estimated that more that $2 trillion is spent by Baby Boomers each year.  Whole industries have grown up around the needs and desires of aging Boomers.  Questions arise though about Baby Boomers and retirement age.  What effect will the retirement of millions and millions of Boomers have on the economy?

Baby Boomers Effect on Economy as They Retire

In many ways Baby Boomers and retirement age have never mixed.  As a group Baby Boomers take care of themselves and continue to participate in numerous active lifestyles and sports.  The dichotomy between Baby Boomers and retirement age has largely redefined the concepts of retirement communities and nursing homes.  Still, as Baby Boomers leave the work force and begin to draw on Medicare and Social Security the United States budget will be taxed as never before.  The number of younger employees in the work force will soon be vastly outweighed by the retirees depending upon the financial contributions of those still working.  In addition Baby Boomers on average are living much longer than older people of earlier generations.  They will be drawing on medical resources for increasingly long periods of time.

Baby Boomers Effect on Economy Positive and Negative

An examination of Federal statistics (http://www.fedstats.gov/key_stats/index.php?id=ssa) shows that Boomers have both a positive and negative effect on the United States government.  Their long life spans will place a burden on both the Medicare and Social Security systems.  Still, the medical advancements which derive from the health care needed and demanded by this generation help younger generations as well.  Their high level of disposable income and inclination to spend that income strengthen the economy.  A growing segment of Baby Boomers is electing to work beyond retirement age.  In some cases Baby Boomers are even starting new careers after having successfully completed their first callings.  From the day they were born Baby Boomers have been a generation that changed the way many things in American culture were done.  Now as Baby Boomers reach retirement age they are continuing to spark innovation.