Is Generation X the unsung economic engine sustaining U.S. consumer growth?
Is Generation X the unsung economic engine sustaining U.S. consumer growth?
In 2025, Generation Xāthose born between 1965 and 1980āemerged as an unexpected pillar of the U.S. economy. Once dubbed the "forgotten generation," they are now seen by analysts as a key driver of consumer demand.
ā Spending Scale and Power
According to NIQ and World Data Lab, GenāÆX is projected to spend $15.2 trillion globally by 2025, making them one of the top economic contributors worldwide (martechedge.com).
In the U.S., their average annual spending exceeds $83,000, outpacing Baby Boomersā $62,000 (kiplinger.com).
ā Unique Consumer Behavior
GenāÆX occupies the so-called āsandwich generationāācaring for aging parents while still raising children. Their spending spans across mortgages, tuition, eldercare, healthcare, and savings, making them complex, multi-directional consumers.
They also show higher engagement with financial products, and about 40% of their net worth is tied to investments and retirement vehicles.
ā Economic Importance
Supporters argue that without GenāÆXās consistent spending across key sectors, the economy would slow down significantly. In an era of high inflation and economic volatility, their resilient spending provides a stabilizing forceāespecially when younger generations are burdened by debt and Boomers are entering full retirement.
ā ļø Counterarguments and Risks
Critics point out that GenāÆXās high spending is not necessarily a sign of financial health.
According to reports from the Bank of America Institute, GenāÆX households are increasingly shifting their budget toward essential needs, while cutting back on discretionary spending (institute.bankofamerica.com).
Surveys also reveal that nearly half of GenāÆXers feel unprepared for retirement (nypost.com).
From this view, GenāÆX may be consuming out of necessity rather than confidenceāa coping strategy driven by rising costs, familial responsibilities, and underfunded retirement plans. The question becomes whether this consumption is truly sustainable over the next decade.
š Debate Sum