The United States' economy grew by 1.5% in the second quarter of 2026, following a 2.1% increase in the first quarter, according to recent reports. This growth has been partly driven by continued consumer spending, even as inflation remained a concern, reaching 3.7% in July 2025. Despite a drop in household confidence to a historically low level in May 2025—5 points below pre-Middle East conflict levels—retail sales saw a 5% increase in value and a 1.6% rise in volume between July 2025 and July 2026. Economist Edward Yardeni, a veteran of Wall Street, suggests that the U.S. economy should be labeled as being in a "G" phase rather than a "K" phase. The "G" refers to "generational," highlighting the significant economic influence of the baby boomer generation, those born between 1946 and 1964. This group, described as the "richest generation in history," holds nearly 90,000 billion dollars in net wealth, accounting for about 52% of the total wealth of American households. They also hold more than half of the value of stocks owned by Americans and 41% of household real estate. Baby boomers have historically benefited from low interest rates and many no longer have mortgages to pay. Their financial gains have been further boosted by the strong performance of financial markets and recent increases in interest rates, which reward their savings. Due to rising mortgage costs, many are choosing not to buy smaller homes, which limits the supply of homes on the market, driving up prices and increasing their wealth. In 2024, people born between 1946 and 1964 spent an average of $69,303, or about $5,300 more than five years earlier. This spending has led to a surge in leisure, tourism, and health-related expenditures, with U.S. travel spending expected to reach a record $1.37 trillion in 2026. Tourism has emerged as one of the few sectors with strong job growth in the United States. The private healthcare sector is also expected to be the top job creator in the country over the next decade, driven by the growing care needs of the aging baby boomer population. Additionally, baby boomers often provide financial support to their children and grandchildren, helping them with major purchases like homes. A study by Visa Business and Economic Insights found that a quarter of Generation Y homeowners in the U.S. received essential help from their parents to buy their homes. This intergenerational financial support helps sustain overall economic consumption and activity.