Wednesday, October 12, 2016

How Might Millennials Force Americans to Export Global?

Millennials are staying home longer, spending less money, and have more aesthetic interests than the generations before them. As 70% of our economy is based on domestic spending it is beneficial to consider the impact of a new spend less but feel better generation. They are not as consumer oriented and don't find the same value in new products. This means they may be putting a dent in our economic foundation but can lead to a push to become a stronger export nation.

If domestic spending declines then the economy slows down. The Millennial are a large population and their habit of saving more and spending less can be a positive thing when we consider more people will be paying into the system even though they will spend less on discretionary items. Housing, restaurants, entertainment, the arts, travel and recreation will likely get a large bump.

It is also important to consider what savings mean. Unless they are putting this money under their mattresses, chances are it will be available for investment. More savings mean growing businesses, more jobs, and an expanding economy when that money is funneled as available investment capital. The products and services created from this money will need to be sold somewhere overseas to create a beneficial upswing for the country.

Expansion can be in the future even if Millennials spend less on retail products and cars. If the country orients toward selling in the global market and gearing its industries for long-term competitive advantages that move far beyond today' stock price and more toward savings and investment might be a winning strategy.

The trend toward greater globalization is moving at a rapid pace. Advances in telecommunications and travel is making it easier for people to act and interaction on a personal and professional level on a global arena. Businesses will need to switch to markets that are willing to purchase their products. If Millennials are not buying then they will need to transform themselves into producers and exporters to maintain the economic volume we have become accustomed.

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