How the millennial generation could affect the economy over the next five years

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first_img 20SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr by: Laura ShinThis year, Millennials are expected to surpass Boomers as the largest living American generation, and soon, their effects on the economy will be felt in even greater measure, according a new Standard & Poor’s report released Wednesday.The report by Beth Ann Bovino, Standard & Poor’s U.S. chief economist, noted that this generation, born from 1981 to 1997, numbers 80 million and that they spend an annual $600 billion. By 2020, they could account for $1.4 trillion in spending, or 30% of total retail sales.Surprisingly though, this generation has conservative spending habits similar to those of the Silent Generation, which grew up during and after the Great Generation. What distinguishes Millennials from other generations is the historic student loan debt that the generation carries, which in turn has meant that Millennials (and some of Gen X) have had less access to full-time jobs and wealth than previous cohorts.Bovine looked at what this generation might do over the next five years to see how they might affect the U.S. economy. If the economy continues to strengthen, as Standard & Poor’s projects, there’s potential that Millennials could start making big-ticket purchases that contribute to economic growth. On the other hand, their student loan debt could keep them from spending and not buying houses, costing the economy. continue reading »last_img

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