In The Great Boom Ahead, Harry S. Dent explains the critical importance of understanding the impact of demographics on economic cycles.
Dent has successfully correlated population statistics and "stage of life" waves to recessions and booms.
Dent’s premise is that a growing population creates economic demands that must be served. Individuals also go through predictable spending patterns during their lifetimes. For example, during the college years, most people don’t have high disposable incomes for spending. During the middle twenties and thirties, people are building their families and households. During the mid forties, people tend to acquire more elaborate homes. During their fifties and thereafter, people tend to reduce their spending to save for and budget through retirement.
The size of generations in the economy and their spending patterns are principal factors driving the economy, and, by studying and charting the expected spending based on the stage of life of the generations, expansions and recessions of the economy can be predicted.
This information can be used as a tool in strategic business planning and in personal financial planning.
The reason for the title is that, based on the stage of life of "baby boomers," Dent predicted (in 1994) the greatest economic boom in U.S. history, lasting from 1995 through 2007. We are in the middle of this boom now. It has confounded most conventional economists, but "fits" in Dent’s model.
Of some concern, Dent has also predicted one of the greatest depressions in U.S. history, starting in 2008. We must exploit this boom to be prepared for the depression ahead.
Since all of us have a stake in the economy – for our employment, for our investments, for our businesses – The Great Boom Ahead should definitely be on your "must read" list.
Buy it on Amazon: Great Boom Ahead: Your Guide to Personal & Business Profit in the New Era of Prosperity.
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