finance
Economist Describes U.S. Economy as G-Shaped Driven by Older Americans
Ed Yardeni of Yardeni Research outlined a G-shaped economy in a client note. The description centers on spending patterns among Americans born 1946-1964 and their financial transfers to younger relatives.
May 27, 3:05 PM·1m read1 source
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U.S. economy is better described as G-shaped than K-shaped. U.S. household wealth. Yardeni said older households are directing part of that spending toward adult children and grandchildren. The note contrasted this pattern with affordability pressures reported among younger generations.
6 trillion in assets. Bureau of Labor Statistics figures indicate this group recorded average annual expenditures of $69,303 in 2023. Yardeni stated that retirement has not reduced spending among the wealthiest generation and that consumption growth appears across major categories.
He linked the pattern to record recreational spending in March and record housing-related outlays. U.S. housing wealth. U.S. Travel Association.
Yardeni pointed to healthcare employment as another channel.
The private education and healthcare sectors added 618,000 jobs in the twelve months ending in April, while all other sectors combined lost 367,000 positions, Bureau of Labor Statistics data show.
