How the gerontocracy at the top may skew the market
General Newsletter: Read One Thing
How the Gerontocracy at the Top of our Government May Skew the Market
Sept. 03, 2024
It may be “Brat” at the top of the ticket, but the summer spirit is more “Beach Blanket Bingo” in our legislature: the median age in the Senate is over 65. What does it mean for our economy that our government is led by individuals in the final years of their wealth-building, as opposed to younger leaders with more patient portfolios?
Historically, the stock market has an average rate of return of around 10%, but there are plenty of rises and dips along the way. Older people generally have a harder time handling short-term market slumps because they don’t have the time to bounce back that a 30- or even 50-year-old does. That could lead to the government running the economy from a short-term perspective compared to how a government of younger people might respond.
In this unusual election cycle, I’m curious to see how the age gap between Kamala Harris and Donald Trump might affect how they view fluctuations in the stock market and talk about their economic priorities. Read more about what economic issues tend to matter most to different generations and how a gerontocracy can shape the economy.
Author: Caitlyn Driehorst and Contented
Date Published: 9/03/2024
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