Part 8/14:
Higher wages in aging societies will alter spending patterns: older populations will shift expenditures toward healthcare and pensions, reducing demand for discretionary goods and services. This change pressures companies built on growth and consumption models premised on expanding populations.
The Future of Investment and Markets
The decline in younger workers and aging consumers will impact asset prices, especially markets heavily reliant on growth. Pension funds, largely invested in equities, may see reduced inflows as new contributors diminish. This could trigger a downward spiral in stock markets, threatening economic stability.