In The $84 Trillion Elephant in the Room, Ben Carlson examines projections for the massive intergenerational wealth transfer slated to occur over the coming decades—primarily from Baby Boomers to younger generations—estimated at around $84 trillion. A Wealth of Common Sense+2Yahoo Finance+
While various estimates exist (some lower, some higher), the scale is universally large, and many assumptions (rate of return, timing, consumer behaviour, taxation) introduce uncertainty. A Wealth of Common Sense
Implications for government contracting / federal government:
- Tax & regulatory impacts: As wealth transfers, tax policy (estate, gift, capital gains) may change. Federal agencies may see demands for more robust compliance, reporting, or oversight in contracts related to transfers or inheritance.
- Shifts in procurement demand & consumption: Heir recipients may change spending patterns, possibly influencing what types of goods and services are in demand, which can shift where contracting opportunities arise.
- Charitable giving & nonprofit contracting: Much of this wealth is expected to go to charities, which may increase contracting or grant opportunities for organizations that partner with the government on social programs.
- Capital flows & investment policy: As large sums are redistributed, financial markets, investment behavior, and government borrowing / financing strategies may shift, potentially affecting how government agencies manage funding or contract financing.
Read more: https://awealthofcommonsense.com/2025/08/the-84-trillion-elephant-in-the-room/