The Great Y Hope

Despite all the doom and gloom around the financial markets, the economy and unemployment, there is hope in the bigger picture. That hope comes from the underlying demographics of our society.

We all know that "self absorbed" of Baby Boomers have dominated the economy, and in many ways society's agenda for decades (this is why 60 is the new 40, etc). But while there is much talk regarding how the Generation Y or The Millennials (or the Echo Boomers) have contributed to the result of the recent presidential election and are influencing economic policy, there has been much less talk lately regarding how they will directly influence the health of our economy over the next few years.

The book Millennials Rising: The Next Great Generation was published all the way back in 2000! Since then there are lots and lots of blog posts on the specific habits of Gen Y, but let's revisit the bigger picture to see the bright spots in our future.

The Boomer generation still remains the largest group in our economy and holds the bulk of the society's wealth. Despite the downturn in the markets, loss of home values and credit issues, this group has had many decades to accumulate wealth. But while Boomers are pulling back into protection mode, Gen Y is still preparing for or attending college, leaving college, establishing careers and starting families.

Marketers should remember that life or lifestyle changes represent significant opportunity. As members of the Y Generation finish school and begin to start to earn money, they are in a purchase mode. Even renters need furniture, electronics, household supplies, and entertainment. As they look to purchase homes, give birth to Generation Z, purchase larger cars, etc., the economy will receive a boost.

I'm not talking about Ytopia (since I must admit that I really don't understand what this is) but people who have studied the Y Generation suggest this group has very similar values and economic aspirations to their parents (perhaps "Echo Boomers" as 60 Minutes and Visa chose to call this group, is appropriate in these respects - although a Harris Poll would suggest this generation has other names for itself). They have been called "voracious consumers" and very brand oriented, versus their older Gen X cousins. They have been trained to be "doers and achievers." While clearly different based on their orientation to technology, let’s not also forget that their addiction to technology suggests they must spend to keep pace with Moore’s Law (which, incidentally, this month PC Magazine and Itel are suggesting will be broken with even faster growth).

Ultimately there is a lot of free information on specific generational influences and the similarities and differences between generations. I feel the 2007 PBS documentary "Generation Next" was particularly good, but email or leave a comment here if you wish for some additional links. But remember the bigger picture with a lighter heart.

My point is simply that while tight credit, growing unemployment, growing deficits and a number of other things the media seems to go on incessantly about create doom and gloom attitudes, demographics represent the scenario of a positive future.

So I ask you (few) readers to talk about this more positive outlook on our economic future as you hear talk of doom and gloom. Help to start a new attitude, or better still, a belief system around the direction our economy will take over the next few years. The demographic changes are real but our attitudes can help lead the way.