The Age of Power: How Gerontocracy Is Shaping Our Future
I’ve spent my life working in financial planning and media, but one of the most pressing, and often overlooked, economic issues I see today isn’t just inflation or interest rates—it’s who holds the power to make decisions about them. Welcome to the era of gerontocracy—a system where political and corporate leadership is dominated by the elderly. And it’s not just a U.S. problem. It’s global.
In the U.S., the average age of public company CEOs is 58. For directors, it’s 63. In Congress, it’s even higher. And while the upcoming Senate might not technically be the oldest in history, that’s only because, frankly, some members have passed away in office. If Donald Trump serves a second term, he’ll be the oldest president the country has ever had—breaking the record previously set by Joe Biden.
Why Are Leaders Getting Older?
This isn’t just about individual elections. Leaders of the world’s two most populous nations—India and China—are 74 and 71 years old, respectively. In fact, the average global citizen is governed by someone 40 years older than them. This isn’t just coincidence. It’s the result of shifting demographics and long-standing power structures that heavily favor those who’ve already climbed the ladder.
In America, baby boomers have been the dominant political and economic force for decades. From free college in the ’70s to tax cuts in the ’80s and Medicare in retirement, they’ve largely written the rules of the game—often to their own benefit. David Willetts’ book The Pinch says it best: boomers took their children’s fortune, and it’s hard to argue with him when you look at the data.
The Greatest Wealth Transfer in History
Boomers weren’t just lucky—they were perfectly positioned. They came of age during the largest wealth expansion in history: post-WWII industrial growth, rising home values, automation, global trade, and women entering the workforce. The result? Boomers built the largest generational fortune in human history.
But wealth inequality even within their generation is startling. Wealthier boomers consolidated power—on corporate boards, in government, and across institutions—while poorer boomers did better than their parents but still faced rising inequality.
And with power comes longevity. Wealthy individuals in the U.S. now live 14 years longer than those in the bottom 1%. That’s not just a health stat—it’s a power stat. Because the longer someone lives, the longer they can stay in leadership. This creates a systemic bottleneck, locking younger generations out of positions of influence.
The Housing Crisis and Local Power
Let’s talk housing. It’s more unaffordable now than at any time in modern U.S. history, especially when measured against median incomes. Why? Because the older generation—those who vote the most in local elections—have every incentive to keep zoning restrictive and housing limited. In fact, voters over 65 are seven times more likely to vote in local elections than voters under 30.
The average city council member is 52 years old. These are the people who shape your local housing policy, and they tend to protect their home values—not future affordability. That’s gerontocracy in action, not in theory.
Why This Matters for Younger Generations
If you’re a Millennial or Gen Z, you’ve probably experienced stagnation in your career progression. That’s not just bad luck. Senior positions are often held by older workers who—thanks to age discrimination laws that favor those over 40—are nearly untouchable. Promotions stall, wages stagnate, and young professionals resort to job-hopping just to stay afloat.
Older leadership does bring experience. But when it overstays its welcome, it blocks innovation and upward mobility. And let’s be honest—retiring comfortably on a beach with a pension sounds a lot better when you’re already sitting in the boardroom.
A Global Shift—But Not in the U.S. (Yet)
In 2024, for the first time in decades, democratically elected leaders globally started getting younger. But not in the U.S. Here, corporate boards and political offices remain one of the last strongholds of boomer dominance. And it’s not just about age—it’s about how the system has been tailored to keep the powerful in power.
But change is coming. As wealthier elder populations shrink and younger voters become more influential, we may see a shift. Until then, understanding this dynamic is key to making smart financial, political, and career decisions.
All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.
