We are all on the Titanic and are headed toward the iceberg. We are going to see profound economic changes by 2040 that will likely be the destruction of the capitalist economic model we have. The shift has already started and like will accelerate. That is the demographic shift.
1. America will turn more conservative. Progressives don’t have kids. As conservatives have kids and those kids start reaching voting age they well tend towards conservative views. Likely this means that America will become a more religious place as well.
2. Taxes will be higher. To pay for all the entitlements the tax rates will rise.
3. Fewer things. The world is also aging meaning that we will just have fewer things as other places also run into worker shortages. Likely good for climate change.
4. Real estate crash. Most places will have a real estate crash and the places that people want to live will have a boom.
5. Equities crash. As people age and labor shortages arise a lot of the debt won’t be serviced. This will lead to lower returns and a general market contraction.
6. Healthcare. Most money will be spent on healthcare.