Demographics
Demographics is the collection and analysis of broad characteristics about groups of people and populations. Referring to the socio-economic information expressed statistically, it tackles employment, education, income, marriage rates, birth and death rates. Governments and corporations use demographics to learn about a population’s characteristics for policy development and economic market research and future trends. With the combination of the internet, data, and artificial intelligence, demographics plays a big role in amplifying the business sector, structural productivity growth, living standards, saving rates, consumption, and investments.
- Can also be used to predict social changes
- Claimed to be the most powerful economic force
- Demographic trends can be used to predict market and economic trends years (or even decades) in advane
- Massive Central Bank Intervention after 2008 has negated the impact of demographics and distorted markest true nature
- Immigration is good for demographics - it fuels growth
- Think of 1920s, etc.
- Lack of Immigration hurts (1930s)
- Technology & Disruption can have a huge impact on demographics
What Can Demographic Be Used For
- Predicting population size
- Predicting economic growth
- Predicting stock market prces
- Predicting interest rates
- Workforce growth is a main driver of inflation
- More workers = more demand for goods, money, etc.
- Young people costs a lot, but produce nothing
- Predicting demand for various items or industries (Spending Waves)
- Ex. Motor Cycle Demand
- Ex. Recreation Vehicle Demand
- Ex. Potatoe Chip Demian
- How? The US Bureau of Labor surveys US citizens on 600 categories of spending (from birth to death)
- Allows us to see at what age people buy things and what demand will be based on demographjics
- Predicting Inflation