Volume 47 April 2019

3 ROE REPORTER | DKAM One of the most widely known phenomena is the Baby Boom. There was a significant increase in the birth rate which occurred in a short period of time. Figure 2 illustrates how this generation entered the workforce in size during the 70-80’s. Figure 2. At the same time as the working age population was growing significantly, women began entering the workforce in large numbers. The participation rate of women doubled over a couple decades at the same time as the population in total was growing at unprecedented levels. This large increase in workers led to increased wealth, increased spending and, as a result, an increase in prices (inflation). Figure 3. These charts are important when it comes to investing because Baby Boomers’ children, Millennials, were born over a longer timeline and most haven’t entered their prime spending era or are delaying these expenditures (starting families). Essentially, the demographic forces that caused the high inflation of the 70s and 80s aren’t occurring anymore, so we don’t anticipate a hike in inflation going forward.