|
GaramChai.com >> Book >> Section 7
American Demographic Trends
Two most
common topics close to most Americans are — the economy and
the weather, not necessarily in the same order. Most economists
also realize that economic conditions are relatively “short
term” and there are various other factors that are going to
play a role in the long term, one of them being the demographics
of the nation. There is an increasing mention of the change
in demographic profile of the country in the media and elsewhere
and I thought I’d research it a bit and was surprised by the
findings. There are a few distinct demographic generations
in the US.
Silent
Generation: The first being the “Silent Generation”, consisting
of those born between 1925 and 1942. They are hard working,
economically conscience, and trusting of the government. They
were very optimistic about the future and held a strong set
of moral obligations.
Baby
Boomers: The generation most talked about is the “Baby
Boomers”, generally consisting of those born between 1945
and 1960. Boomers have a strong set of ideals and traditions,
and are very family-oriented. They are fearful of the future
and politically conservative. Boomers have shaped the current
economy and financial markets to no small degree. Currently,
they are in the segment of the life cycle characterised by
having enough wealth or income to purchase items other than
houses and cars. This wealth, often in the form of professionally
managed retirement accounts, mutual funds, and pension funds,
results in a huge infusion of funds into the markets for stocks,
bonds, and other financial investments. The parents of the
Baby Boomers are now reaching the latter stages of the life
cycle and are beginning to pass down accumulated savings to
heirs in sizable chunks. Billions and billions of dollars
worth of wealth are being inherited every year.
Generation
X: Next comes the Generation X consisting of those born
between 1961 and 1981 who live in the present, like to experiment,
and expect immediate results. By some accounts, they were
the dominant force behind the dot.com boom. GenXers are considered
to be selfish and cynical, and depend a lot on their parents.
Generation
Y: The future generation Generation Y is already in the
teens, currently age 14 and younger. Expected to be very materialistic,
selfish, and disrespectful, but also very aware of the world
and very technologically literate. There are 70.4 million
youths in the US aged 5-22, comprising approximately 26% of
the whole US population. Generation Y is almost three times
the size of Generation X. Another interesting fact about this
generation is that this is the most ethnically diverse generation
yet. One in three is not white and nine out of 10 children
under the age of 12 have friends of different ethnicity than
their own.
Editor's
note: You can also find details on demographics and statistics
on GaramChai.com's Statistics
section
What
does the changing nature of American demographics mean to
Indians and Indian companies?
If you
are a young professional aspiring to come to the US, you need
to be prepared to compete with the GenXers. You also need
to prepare yourself for the influx of Generation Y youngsters
into the job market in the next few years. They are going
to be technically savvy and unlike the earlier generations,
not hesitant to learn new tools and technologies. As the GenXers
and Generation Y moves up the value chain, there will be a
ripple effect on the economy. There will be a demand for people
in the service sectors. Added to this, there will be a renewed
demand for professionals who can service the needs of the
aging baby boomers. Medical industry and the financial sector
stand out as prime candidates for growth. Even the Insurance
and service sector will see a renewed growth. Coming to the
US will not be a walk in the park. However, there will be
a definite demand for people with certain skills who can supplement
the talents of local folks here.
For Indian
companies, a study of American demographics might unearth
interesting facts. They need to study the demographic profile
in greater detail since it will help them in catering to the
demands of the changing American market. The market for consumer
goods is going to start booming; especially as the GenXers
and Generation Y folks hit the job market and build disposable
incomes. Interestingly, the aging baby boomers will require
products and services to cater to their tastes too. They are
extremely wealthy and will not hesitate to spend big bucks
for quality products and services. Indian tourism industry
take note, baby boomers are going to travel to exotic destinations
and if we can provide them with the right kind of amenities.
We need to generate some hype and with proper PR and marketing,
India could easily become the “go to” destination. Indian
software industry, which had got used to enjoying double (even
triple) digit growth rates, is getting a jolt of reality.
An industry that was content to match an abundant supply of
qualified technicians with an insatiable demand from the global
market, is seeing the ground shift beneath.
Most Americans,
believing in Keynesian maxim in the long term we’re all dead, are focusing
on the short term. They are worried more about the immediate
future, concerned about the stock market crash and current
economic woes. Of course, there is a lot of negative economic
data in the horizon and an economy slipping into recession
is a pretty sight. However, even a cursory glance at the next
decade or so, shows an interesting demographic shift, one
which could lead to some interesting opportunities. I can
already see Indian entrepreneurs sizing opportunities in the
US, riding on the changing demographics.
Extract
from CIA’s World Fact book:
Population: |
278,058,881
(July 2001 est.) |
Age structure: |
0-14
years: 21.12% (male 30,034,674; female 28,681,253)
15-64 years: 66.27% (male 91,371,753;
female 92,907,199)
65 years and
over: 12.61% (male 14,608,948; female 20,455,054)
(2001 est.) |
Population growth rate: |
0.9%
(2001 est.) |
Birth rate: |
14.2
births/1,000 population (2001 est.) |
Death rate: |
8.7
deaths/1,000 population (2001 est.) |
Net migration rate: |
3.5
migrant(s)/1,000 population (2001 est.) |
Sex ratio: |
At
birth: 1.05 male(s)/female
under 15 years: 1.05 male(s)/female
15-64 years: 0.98 male(s)/female
65 years and
over: 0.71 male(s)/female
total population: 0.96 male(s)/female
(2001 est.) |
Infant mortality rate: |
6.76
deaths/1,000 live births (2001 est.) |
Life expectancy at birth: |
total
population: 77.26 years
male: 74.37
years
female: 80.05 years (2001 est.) |
|
|
|
|
©Mohan
Babu: All Rights Reserved 2002- 2013
|
|
All rights are
reserved. Mohan Babu ("Author")
hereby grants permission to use, copy and distribute this document for any
NON-PROFIT purpose, provided that the article is used in its complete,
UNMODIFIED form including both the above Copyright notice and this
permission notice. Reproducing this article by any means, including (but not
limited to) printing, copying existing prints, or publishing by electronic
or other means, implies full agreement to the above non-profit-use clause.
Exceptions to the above, such as including the article in a compendium to be
sold for profit, are permitted only by EXPLICIT PRIOR WRITTEN CONSENT of
Mohan Babu.
Disclaimer: This document represents the personal opinions of the
Author, and does not necessarily represent the opinion of the Author's
employer, nor anyone other than the Author. Any mentions of commercial
products, company names, or universities are solely for information purposes
and do not imply any endorsement by the Author or any other entity. The
Author provides this article "as is." The Author disclaims any express or
implied warranties including, but not limited to, any implied warranties of
commercial value, accuracy, or fitness for any particular purpose. If you
use the information in this document in any way, you do so entirely at your
own risk.
Click here to
send feedback to the author:
Mohan _at_ GaramChai.com |
|
