Speaking at the 401(k) SUMMIT in San Diego last week, Barry Asmus of the National Center for Public Policy Analysis said the six trends are:
The aging population, which has led to 75 million people in the United States between the ages of 45 and 65 years old has led to huge needs for support in the continuing accumulation and distribution phase, Asmus said.
2. Population Growth
As the 21st century unfolds, Asmus said, the population will probably grow about 30%. It is hard to have development without population growth, so the U.S. is in a much better position than areas like Western Europe, which Asmus said is in a position of “demographic suicide” and Russia, which has a loss of about 2,000 people per day.
3. Stable Price Level
As a result of good monetary policy, digitization and globalization, which all drive down prices, the U.S. has had mild inflation, he said. A stable price level is vital to an economy, Asmus commented, because “inflation does to the economy what amphetamines do to the body.”
Even the lowest and fairest tax affects consumer behavior and leads to less GDP, he said. The significant business expansion, apart from a few minor bumps, since the 1980s can be attributed, at least in part, to tax cuts made under President Ronald Reagan, Asmus said. High taxes can be devastating to economic growth.
In the last 10 years, American productivity has grown 3% to 4% per year. With less than 5% of the world’s population, Asmus said, the U.S. still produces one-third of the world’s wealth.
What America wants is solutions, Asmus said. Advisers are entrepreneurs and need to connect with clients by building an experience that builds a story with clients.
These trends will continue to influence the world economy and everyone will see them affect their business. Advisers can take this information and be proactive about embracing these trends, using them as a competitive advantage over others, Asmus said.