Boomers hold half of U.S. wealth, driving spending and creating a generational divide, economist says

Wall Street veteran Ed Yardeni argues that baby boomers, with nearly $90 trillion in net worth, are the primary force behind consumer spending, which accounts for about 70% of U.S. GDP. Boomers control 54% of household stocks and 41% of real estate, allowing them to spend despite high interest rates, while younger Americans struggle with borrowing costs. Yardeni calls this the 'G-shaped economy,' where wealth concentration among older generations supports consumption through accumulated retirement wealth rather than labor income.

Boomers’ financial dominance stems from decades of asset appreciation, with their $90 trillion net worth representing over half of all U.S. household wealth. They hold roughly $30 trillion in stocks and mutual funds, plus 41% of real estate, while also controlling about 60% of money-market funds—a position that turns higher interest rates into income rather than a burden. This generational cushion lets them maintain spending even as younger cohorts face borrowing costs that delay homeownership and investment.

The Silent Generation’s impending $20 trillion transfer will further concentrate assets among boomers, who already benefit from locked-in low mortgage rates. Their reluctance to sell homes tightens supply and pushes prices higher, reinforcing their wealth advantage. Meanwhile, boomers often support adult children through down-payment help, softening but not eliminating the divide.