The United States was a very different country in 2005 than it was in 1980. It had changed politically, socially, and demographically. Its economy was structured very differently, with workers facing vastly different job options and life prospects. The position the United States held in the world order had also changed a great deal over this quarter century. This chapter outlines some of the key features of the changes that have occurred since 1980.

Demographics

The United States was a considerably older, more ethnically diverse country in 2005 than it was in 1980. The share of the population that was older than age sixty-five had risen by 10 percent (from 11.1 percent in 1980 to 12.2 percent in 2005), while the share of the population that was younger than age twenty had fallen by more than 12 percent (from 31.7 percent in 1980 to 27.8 percent in 2005).

However, this demographic shift is relatively minor compared to the aging of the baby boom generation, the massive group of 79 million people born between 1946 and 1964. In 1980, the baby boomers, ranging in age from sixteen to thirty-four, were the young people just entering the labor force and forming their own families. In 2005, the baby boom cohort had matured, and some of its oldest members, at fifty-nine years old, had already reached retirement age. The aging of this huge cohort has changed the character of the country.