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Gerontocracy has always thrived in undemocratic places—Communist people’s republics, Gulf monarchies—where only death could pry power from the ruling elders. American gerontocracy is exceptional for being freely elected. Donald Trump will soon be an octogenarian, and is president in part because the preceding octogenarian, Joe Biden, did not want to admit his senescence. The median senator is 65, and the oldest, 92-year-old Chuck Grassley, has not ruled out running for reelection in 2028. The typical general-election voter is a spry 52, but in primary elections, which decide the majority of political contests, that number rises to 59. Half of all the money donated to political campaigns comes from Americans age 66 and older.
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Although political gerontocracy has operated overtly, the rising economic power of the elderly has escaped much notice. Over the past 40 or so years, American wealth has grown ever more concentrated among the oldest generations. In 1989, Americans over age 55 held 56 percent of it; today they hold 74 percent. During that same period, the share of wealth held by Americans under 40 has shrunk by nearly half, from 12 to 6.6 percent. The color of money is now gray.
Much of this shift is the result of demographic change: 18 percent of Americans are senior citizens today, up from 13 percent in 1990. But even at the household level, Americans over 55 have accrued wealth more rapidly than those who are younger. Among those 75 and older, the numbers are particularly striking. In 1983, their household net worth was only slightly above the national average; by 2022, it was 55 percent higher.
For nearly a century, some of the central debates in American politics have been over inequalities—between rich and poor, male and female, Black and white. When the Baby Boomers were children, older Americans were widely viewed as vulnerable. “Fifty percent of the elderly exist below minimum standards of decency, and this is a figure much higher than that for any other age group,” Michael Harrington wrote in his 1962 book The Other America, often credited with inspiring the War on Poverty. “This is no country for old men.”
Three years later, in 1965, Medicare was created. A major expansion of Social Security followed in 1972. These changes were remarkably effective: The share of elderly people living in poverty dropped by more than one-third within a decade. But because these programs are broad-based entitlements, they have transferred huge sums to the prosperous, too. The portfolios of that latter group, meanwhile, have been swelled by a rising stock market and rising home values, outcomes that may not be entirely replicable for younger generations. As a result of all of these factors, intergenerational inequality between old and young has not merely reversed. It has accelerated.
Most current Social Security and Medicare beneficiaries will receive more from the program over their lifetime than they paid in taxes, and the extra money will necessarily come from the pockets of younger generations. The two programs now pay out more than $2 trillion a year, more than one-third of all federal expenditures. Their sustainability was a subject of major debate during the Obama years, when the national debt was much lower than it is today and interest rates on that debt were close to zero. Financially, the matter is more urgent now. The trust funds for Social Security benefits and Medicare’s hospital insurance are projected to become insolvent in roughly seven years.
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Yet even noticing the looming threats has become taboo for the two major political parties. One of Trump’s shrewdest political realizations was that entitlement reform—once a priority for fiscal conservatives—was a losing issue. Instead, he has pledged not to touch entitlement spending and lavished seniors with even more government money. His One Big Beautiful Bill Act created a special $6,000 tax deduction for seniors, which will cost taxpayers $91 billion over the next four years. The same bill cuts $1 trillion in spending on Medicaid, which is expected to leave some 5 million working-age Americans uninsured.
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