The Rise of the Gerontocracy: How Older Generations Gained Global Power

The Aging Face of Global Leadership

In recent years, a striking trend has emerged in global leadership - the increasing age of those in power. Consider these statistics:

• The average age of a public company CEO is now 58 years old
• The average director is 63 years old
• The average member of Congress is over 60 years old
• Donald Trump, if he serves his entire term, will be the oldest president in U.S. history, after replacing the previous oldest president

This phenomenon isn't limited to the United States. The leaders of the world's two most populous countries, India and China, are 74 and 71 years old respectively. On average, people around the world are governed by individuals who are 40 years older than them.

But how did we get here? What factors led to this concentration of power among older generations? Let's delve into the complex interplay of demographics, economics, and societal changes that brought us to this point.

The Baby Boomer Effect

One of the primary drivers behind this shift is the outsized influence of the Baby Boomer generation. Until 2020, Baby Boomers were the largest generation in America by a significant margin. As they moved through different life stages, they became a powerful and politically active voting bloc that could significantly influence government policies.

Their voting patterns tended to align with their current life stage and needs:

• When young: Free education and strong social support
• Entering workforce: Worker protection, affordable housing, and child-rearing support
• Mid-career: Lower taxes, good investment returns, and retirement opportunities

The downside of this voting pattern was that as Boomers aged, priorities like worker protections, free education, and affordable housing became less important to them, potentially disadvantaging younger generations.

David Willets, a member of the British House of Lords, explored this concept in his book "The Pinch: How the Baby Boomers Took Their Children's Future - And Why They Should Give It Back." As both a politician and a Baby Boomer himself, Willets provides valuable insights into this generational dynamic.

Beyond the Baby Boom: The Perfect Storm

While the Baby Boom was a significant factor, it alone doesn't explain the current concentration of power among older generations. Throughout history, human populations have experienced booms and busts due to plagues, wars, famines, and natural disasters. Yet, never before has so much power been held by the elderly.

What made this situation unique was the timing. The Baby Boomers and the Silent Generation came of age during the most intense period of wealth creation in human history. Following World War II, several factors contributed to an unprecedented economic boom:

• Widespread industrialization
• Automation of domestic chores
• Women entering the workforce
• Adoption of global trade
• Advancements in modern finance

These factors caused global productivity, particularly in America, to skyrocket. The world became hundreds of times wealthier than it was in the 1950s, and Baby Boomers were perfectly positioned to capitalize on this growth throughout their lives.

Their significant influence on politics allowed them to shape policies that suited their needs at each life stage. This combination of demographic weight and economic timing allowed Baby Boomers to amass the largest generational fortune in history.

The Tech Revolution and the Class of '55

An interesting phenomenon within this broader trend is the outsized impact of individuals born in 1955. Some of the world's most influential tech companies and innovations were founded, created, or managed by people from this specific birth year:

• Apple
• Microsoft
• Google (Eric Schmidt, while not a founder, played a crucial role in its growth)
• Sun Microsystems
• Java programming language
• The internet itself

While this could be dismissed as coincidence or selection bias, it demonstrates the power of being born at the right time. Malcolm Gladwell explores this concept in his book "Outliers," highlighting how small advantages in timing can lead to significant differences in outcomes.

For these individuals, it was the perfect combination of exposure to new technologies that would reshape the world, coupled with relatively little competition in these emerging fields.

The Housing Factor

Beyond the tech sector, being born at the right time has helped older generations build wealth in less visible but equally important ways. One of the most significant factors is housing.

Homes in America have never been less affordable compared to household incomes. Older generations, who have had decades to build equity in their homes or acquire investment properties, are benefiting from this price appreciation rather than being burdened by it.

Even accounting for the higher interest rates they paid on mortgages, older generations had a much higher homeownership rate than subsequent generations. This is because the barriers to entry for homeownership were much lower when they were entering the market.

Local Politics and the Gerontocracy

The influence of older generations extends beyond national politics and into local governance. According to data collected by Zippia, the average age of a city council member in America is 52 years old. While this is younger than Congress, it's important to note that city council positions are often seen as the first step in a political career.

More significantly, the people who engage with local politics skew even older. The National Civic League reports that only 15 to 27% of Americans vote in local elections. Among those who do vote, elderly homeowners are massively overrepresented. Those 65 and above are seven times more likely to vote in local elections than voters aged 18 to 34.

This voting pattern means that even younger local politicians need to cater to the interests of older voters to stay in office. Often, this translates to policies that maintain or increase property values, which tends to benefit older homeowners at the expense of younger generations trying to enter the housing market.

The Global Perspective

While much of this analysis has focused on the United States, it's important to note that this trend of gerontocracy isn't limited to wealthy Western nations. Even countries that didn't experience the same economic boom in the latter half of the 20th century are seeing power concentrated in the hands of older generations.

Take China, for example. The generation that came of age during China's Great Leap Forward - a period of economic mismanagement so severe it caused a noticeable dip in global life expectancy - is now largely in control of the country's government and economy.

This global trend points to another crucial factor in the rise of the gerontocracy: inequality.

The Role of Inequality

Baby Boomers weren't just the wealthiest generation in history; they were also the most unequal. It's important to note that much of this inequality was driven by the rich getting richer, even as the poor were also improving their economic situation. The life of a poor Boomer was significantly better than that of a poor person in the 19th century, but the gap between rich and poor grew much more dramatically.

This means that the world isn't really ruled by Boomers as a whole, but by wealthy Boomers. They were the first group to grab their seats at the table of power, and they've been reluctant to give them up.

In China, the opening up of the economy happened to coincide with Baby Boomers being in key government positions, allowing them to install their own unique brand of capitalism that, unsurprisingly, involved making themselves and their close associates wealthy before anyone else.

The Health Gap

Wealth inequality doesn't just affect political and economic power; it also impacts who's around to wield that power in the first place. While average life expectancy has increased dramatically over the past century, this increase hasn't been evenly distributed.

According to a study published by the National Library of Medicine, the gap in life expectancy between the poorest 1% and the richest 1% in the United States is more than 14 years. This is greater than the difference in life expectancy between the U.S. and Afghanistan.

Moreover, this gap is widening. Advances in health technology, diet, and lifestyle are resulting in wealthy people living even longer, while the life expectancy of most of the population remains relatively stagnant, especially for those who have worked in physical careers.

To become an old politician or business leader, you first have to become old, and the best way to do that is to not be poor.

The Stagnation of Career Progression

The rapid increase in life expectancy among the wealthy has had a significant impact on career progression across various sectors. As people in positions of power are living and working longer, it's becoming increasingly difficult for younger individuals to move into these roles.

This issue isn't limited to high-profile positions like political office or CEO roles. It's a problem faced by regular workers around the world who struggle to move up the corporate ladder because senior positions are occupied by long-serving executives.

Older workers, aware of the challenges they would face in finding new employment, tend to hold onto their positions longer. In the United States, age discrimination laws protect workers over 40, making it more difficult for companies to replace older employees even if they wanted to.

This has contributed to a trend in the job market where the primary way to increase one's position and compensation is to change companies, rather than advancing within a single organization. Even when companies want to reward staff loyalty, most of those benefits end up going to long-serving Baby Boomers.

The Competency Factor

It's important to note that many of these long-serving individuals are extremely competent. A decades-long career provides valuable experience, connections, and reputation. The old stereotype of elderly bosses being technologically inept is becoming less relevant as even older individuals today have been exposed to technology for most of their careers.

However, the question isn't necessarily about individual competence, but about the systemic effects of having power concentrated in the hands of one generation for an extended period.

The Future of the Gerontocracy

The demographic conditions that made this gerontocracy possible are already starting to shift. As the current rulers age out of their positions, they are likely to be replaced by much younger candidates. While older individuals have many tools to cling to power, they are losing their demographic might as their less wealthy peers pass away.

This shift hasn't impacted authoritarian states as much, where the will of the people has less influence on who holds power. However, in democratic nations, we're starting to see a change. In 2024, for the first time in decades, the average age of democratically elected leaders around the world actually decreased.

This trend was helped by the poor performance of many incumbent leaders in recent elections, as well as the increasing influence of younger voters. However, the United States remains an exception to this global trend, with its leadership continuing to skew older.

Corporate Boards: The Last Bastion of the Gerontocracy?

While political power may be slowly shifting towards younger generations, there's one area where the concentration of power among the elderly is accelerating: corporate boards. For well-connected individuals with the right contacts, a position on a corporate board can be the ultimate retirement gig.

These positions often come with significant influence and compensation, yet require less day-to-day involvement than executive roles. As such, they've become increasingly populated by older, experienced individuals who are no longer seeking full-time employment but still want to maintain their influence and income.

Implications for the Future

The rise of the gerontocracy has significant implications for the future of governance, business, and society as a whole. While experience and wisdom are valuable assets in leadership, there's also a need for fresh perspectives and adaptability in our rapidly changing world.

The concentration of power among older generations has led to policies and decisions that often prioritize short-term gains or maintaining the status quo over long-term sustainability and innovation. This can be seen in areas such as climate policy, technological regulation, and economic reforms.

Moreover, the difficulty younger generations face in ascending to positions of power can lead to disillusionment and disengagement from traditional power structures. This could potentially fuel alternative forms of organization and governance, such as decentralized autonomous organizations (DAOs) or other blockchain-based systems.

The Path Forward

Addressing the challenges posed by the gerontocracy will require a multi-faceted approach:

1. Increased civic engagement: Younger generations need to become more involved in local politics and voting, especially in local elections where their voices are currently underrepresented.

2. Term limits and retirement ages: Implementing or expanding term limits for political offices and mandatory retirement ages for certain positions could help create more opportunities for younger leaders.

3. Mentorship and succession planning: Organizations should prioritize mentorship programs and succession planning to ensure a smooth transition of knowledge and power between generations.

4. Addressing wealth inequality: Policies aimed at reducing wealth inequality could help level the playing field and prevent the concentration of power among a small, wealthy elite.

5. Embracing age diversity: Both public and private sector organizations should strive for age diversity in their leadership, recognizing the value of both experience and fresh perspectives.

6. Education and training: Investing in education and training programs can help younger generations develop the skills and knowledge needed to take on leadership roles earlier in their careers.

Conclusion

The rise of the gerontocracy is a complex phenomenon rooted in demographic shifts, economic factors, and societal changes. While the experience and wisdom of older generations are valuable assets, the concentration of power among a single age group poses challenges for innovation, long-term planning, and intergenerational equity.

As we move forward, it's crucial to find a balance that respects the contributions of older generations while creating opportunities for younger individuals to shape the world they will inherit. By fostering intergenerational cooperation and implementing thoughtful reforms, we can work towards a more balanced and sustainable distribution of power across age groups.

Ultimately, the goal should be to create a system where leadership is based on competence, vision, and the ability to address the challenges of our time, rather than simply on longevity or accumulated wealth. Only then can we ensure that our institutions are truly representative and responsive to the needs of all generations.

Article created from: https://www.youtube.com/watch?v=8xcQrqs9gXA