# The Transfer of Wealth that Won't Be
By:: [[Brian Heath]]
2024-06-17
Some believe that the greatest transfer of wealth in American history is about to occur as the large Baby Boomer generation begins to ride off into the sunset. Because this generation is so large, many believe they will have a lot of money to spend in the later years and a lot of wealth to pass down to their children. Based on the generation's sheer size, there will likely be a sizeable economic shift. The money largely accessible to the market via their retirement accounts will become more challenging to get and in smaller portions as the Boomers transfer their funds to safer bets and begin to draw down these accounts. Since the follow-on generations are smaller, these accounts and the economic vehicles they represent have likely reached their peak size and status for several generations, at a minimum. This transfer of wealth out of the financial markets represents a shift that many look upon positively. The younger generations have seen the failure of these systems up close and lived through the turmoil caused by unchecked policies, stockholder value primacy, and financial engineering.
There will undoubtedly be pain, but the hope is that a good portion of that wealth will be transferred to the next generation, who will do a better job with it. Nonprofits are gearing up in hopes that this will happen. They hope the next generation will suddenly be more generous in their donations than they are. The jury is out on whether more money will result in more giving, but the popular narrative of how far behind the next generations are versus their parents and grandparents is strong. Everyone in nongovernment organizations has their fingers crossed. However, one must also consider whether all of this wealth will be transferred down the line of inheritance.
We find ourselves at an interesting point in history where lifespan increases do not correspond to increases in healthspan (how long someone is healthy). In other words, we are living longer while not being any healthier. This means staying alive is getting more expensive, but we keep living longer. Regardless of whether one believes the Boomers to be an overly selfish generation, human nature and our culture are biased towards living regardless of condition. Thus, as medical advancements continue, it is likely that Boomers will live longer than any other generation before at a time when medical expenses have never been higher because they keep living longer. All evidence points to all the money being spent well before any of it can transferred to their children. So, there will be the greatest transfer of wealth in American history. But, it won't be to endowments, charities, or children. Instead, it will be a great transfer from financial institutions to healthcare and back to the financial institutions investing heavily in healthcare. Access to capital will erode, capital-fueled innovation will evaporate, and millennials will always be left to carry the burden while always behind. Future generations may eventually look to the millennials with the same reverence and thankfulness as the Silent Generation. We shall see, but the Boomer's wealth won't see the light of day until they are all gone and it won't end up in the hands of their children.
#### Related Items
[[Wealth]]
[[Systems Thinking]]
[[Economics]]
[[American]]
[[Policies]]
[[Government]]
[[Health]]
[[Life]]
[[Money]]