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Wealth Distribution and Inheritance, What Will They Buy? Cars

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Wealth Distribution is often discussed at length in periodicals such as American Demographics Magazine, much of this information does not hit the main stream media. A recent article on the huge transfer of wealth to the Baby Boomers, revealed some very interesting facts about such trends in the United State. The amount of money expected to transfer is an unbelievable. What may surprise you is that many of these wealth older generation folks have skip generation trusts and much of that money will end up in the hands of X'ers, while still a good portion will end up with the baby boomers. Actually both groups we have studied buy cars, SUVs, Boats, Light Aircraft, Houses and Pick-ups. Why does this excite me? Well personally it excites me a businessman because I see opportunity to serve the needs of the active aging.

So just how big is it estimated of transfers? So far they say; 41 trillion total. Well 25 trillion is to transfer to X'ers and Boomers and of that 7.2 Trillion to Boomers and the rest a whopping 17 trillion will go to non-profits and private foundations in excess of 6 trillion and the rest about 11 Trillion to go to the X'ers. The rest? Well how much will go to Uncle Sam?

Still worried about 1.8 Trillion estimated in Federal Debt? Not me. 42-25=17 Yes, we are talking 17 Trillion Dollars, so what if we spend a little in advance? This takes into account current market conditions and I expect after this shake up in our Stock Markets and even putting in Sir John Templeton's doom and gloom report this week (I have a lot of respect for Mr. Templeton), but disagree with his predictions. We will be seeing a DOW at 12,000 in five years, even if we have a huge bump in the Real Estate Market as many markets go thru a bubble scenario and a pull back in the stock market due to the jets idling in the economy and time to re-spool up the engines. But this economy is a little different than previously, in that these new engines are like the newer GE Engines on modern airlines or even combat aircraft, they return to full throttle much faster with the increased flow rate in electronic transactions we as consumer have become so accustomed too and as the markets and wire transfers in commerce have grown to expect. What will these people buy?

Well the government will be busy protecting our people and invest in R and D and security and better efficiencies meaning less burden on paper work shuffling or need for manual labor to do it. Downsizing will come as industry rekindled needs more labor cuts and expect another merger craze causing some additional job cuts along with government right sizing. There will also be a robotics revolution as well. Government will also be laying off to control its costs. Those who currently work for government will find the lucrative private sector much more inviting to accomplish their finish line during their pursuit of happiness for themselves and family and the kids, they will be going to college to upgrade skill sets, hopefully not to become lawyers. 17 Trillion is almost more than the government will need and it means that our incredible nation will remain the strongest in the world even after all the international terrorists are long dead or so beaten down they give up and realize that we really do know a better way, join the mainstream of politics.

This is the Boyd Theory of warfare, which unites with the SunTzu and Clauswitz with plenty of historical record. We will remain number one as long as we pay attention to money flows leaving the country and do not over burden the entrepreneurs with lawsuits or over regulation. Of course currently we are falling down in both those areas due to the ever increasing PC’ness of the national politic.

When will all this transfer of wealth take place? Well it is already starting now and will continue for about the next 46 years by my estimates. 4.6 decades of extra umph pushing us forward and that number is bound to increase both in reality and on paper provided we continue our present course and do not allow bureaucracy or over government regulation or socialism to destroy all we are and all we have built thus far. We know what kinds of cars, SUVs and Boats that the Boomers and Z'ers will most likely be buying. Some of the cars and SUVs will be foreign manufactured, it will be up to us to increase our domestic automobile marketability in such free markets to attain the lion share of the transfer of wealth, thus employing more people and flowing more money to more Americans. NAFTA demands 51% of all cars to be made in North America and this also will help Mexico and Canadian trading partners who will hopefully reciprocate.

The economy is a short-term issue during elections and it is a cycle of cycles all cumulatively affecting our long-term outlook for prosperity. Which even the doom and gloomers agree, how can they not, all indicators show positive things with only a few short term speed bumps along the way. The US Dollar and US Market is the place to be and hopefully we will have a properly controlled monetary and trade policy to see our future destiny thru?

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