Workers

A persons financial worth is greatest from ages 50 to 65 and up until a decade ago this included the largest generation in history called the baby boomers. This meant there was lots of capital available for investment and thus the cost of capital was low. Add to that the fact that interest rates were less than one percent and the world was flush with money for investments. Now more than half the baby boomers have retired and the rest will be past 65 in six years so the cost of capital will rise quickly. The baby boomer money is taken out of the capital market and placed in safe spaces like government bonds and money market funds. The result is rising interest rates. This is coming at a time when reshoring is growing and adding to the industrial base so inflation will be a problem. This will lead to higher wages and higher prices and if the first stays ahead of the second the average worker will do alright. The middle income groups paid for the prosperity of the rich over the past forty years and now it is time for the working people to catch up.