In a post on the Harvard Business site, Tammy Erickson writes about the realities of population demographics – and how the number of “big spenders” is declining in many countries around the world.
“…demographics support a view of a slower-growing rate of consumption, not just for this year, but for at least the next decade or so in the United States, Europe, and even parts of Eastern Asia.”
Erickson lists some of the implications of all of this in terms of making it even harder to recover from the current economic downturn. Fewer big spenders leads to slower growth – even before the mortgage/real estate meltdown began affecting consumer psychology and financial reality.
It’s a beautiful, crisp, sunny January day here in Menlo Park – but a gloomy economic outlook certainly pervades.
[Hat tip to Tim O’Reilly for Twittering Erickson’s post earlier.]