I am continuing to discuss the Barbara Dafoe Whitehead/David Popenoe report entitled The State of Our Unions, The Social Health of Marriage in America 2006, Essay: Life Without Children.
I want to highlight some of the report’s findings on the economic factors of the childless trend, and the market forces that support it (perhaps unwittingly, though I think sometimes consciously):
1. Childless young adults are exceedingly well suited to life and work in a dynamic society and global economy. They display great facility and comfort with new technologies. Their youthful penchant for experiment, risk-taking, adventure, along with their sheer physical energy, fit the requirements of the 24/7 work world. One of their most desirable attributes is that they are not tied down by child-rearing obligations. They can pick up and move. They can work odd hours and go on the road. They can quit their jobs without worrying about having more than one hungry mouth to feed.
2. As consumers, young adults who do not yet have children represent a highly desirable market segment. A growing proportion of today’s well-educated young adults step into high paying jobs shortly after they finish their education. They may have college loans to pay off, but their financial obligations are theirs alone. They aren’t yet responsible for others. And their pay-checks and credit cards are stretched to include more than bare necessities. They eat out, go drinking, take vacations, get big screen TVs, join health clubs and buy tickets to sports events and concerts. Even the less well-educated and less well-employed spend money on affordable luxuries for themselves—one reason for the astonishing growth and success of Starbucks.
If you invest in stocks, you’ll note that these industries are all doing very well. Another contributing factor is baby-boomers living off lavish retirement savings. The report notes: “Individuals over 50 make up a growing share of Americans with money to spend on second homes, travel, recreation, learning and entertainment. Sales of so-called ‘recreational’ homes reached record levels in 2005.”
(HT: Why Family Matters)