How the USA Enabled the Rise of China

There are two prominent factors which have enabled the rise of China during the last 30 years. These are the availability of cheap capital within the past 20 years due to the Boomer generation born between 1946 and 1964.

The Boomer generation is responsible for 70% of international capital, which is their investments into their savings that organisations use to invest in products and services. Boomers are the wealthiest at the age of 55 to 65.

During the last ten years of their working life, they put more and more money into their retirement, which makes capital investment incredibly cheaper, and companies have greater access to cash to invest.

Half of the Boomer generation has retired, and capital costs are doubling yearly.

The age of cheap capital is over, and it won’t be until the millennial generation in the United States reaches their 50s and 60s that there will be a return to a cheap capital environment for companies to invest money from investors into new business opportunities.

However, please be aware this only really applies to New Zealand, the United States of America, Mexico, and France, which have a succeeding millennial generation of a similar size to the Boomer generation.

This is because other nations’ Boomer generation chose for various social and financial reasons not to have children and create a successive generation.