Great Potential

Why an Aging America Needs Latinos

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Latinos are little understood in the United States. But many in the U.S. are beginning to notice. It’s not surprising because in 1970 Latinos were only 5% of the nation’s population, but today they’re 50 million strong. By 2050 they’re projected to grow to 95 million or 29% of the total population. Whites will decline to 47%. While growth rates are important, the real news is the difference between the median-age of various racial/ethnic groups: for non-Hispanic whites the median age is 42, for Asian-Pacific Islanders, it is 35, for African-Americans it is 32, and for Latinos it is 27. All this change on the youth side has widened the racial generation gap. So maybe it’s time to reflect on this dynamic trend.

Latinos would puzzle any country, because no other advanced economy in the world has a similar large, young and fast growing population. America’s peers are growing slowly and aging. While this phenomena presents the U.S. with significant future advantages—more active consumers, entrepreneurs, idea generators, skilled labor and workers in their prime earning years, it has seemingly created little optimism and much confusion and angst. The general view is that Latinos are basically cheap labor.

Looking back, timing hasn’t played well for Latinos. For the most part they missed the “foundational” years between 1947 and 1973; an era when many American families were able to establish the educational and socio-economic framework to compete in what was to become a dramatically changing and highly competitive world dominated by technology, information processing and high-end services. In many ways it’s been catch-up ever since.

Today much of the attention centers on immigration (or illegal immigration) but that’s unfortunate because there’s a much greater story, and by the way the external Latino march to the United States is down to a trickle. A more interesting issue is who’s going to pay for Medicare and Social Security and other costs of an aging society that has barely begun to reflect the 70 million aging Baby-Boomers who recently began to draw Medicare. In 2005 there were 59 young/old for every 100 workers; in 2050 there will be only 72. Another critical issue for the U.S. is how to remain a prominent global economic player if its labor force is shrinking. That question is one that Japan, the European countries, Korea, and even China with its one-child policy are also grappling with.

A main contention of this book is that if more Americans understood the very real global challenge to our economic future, they would value an investment in all of our people, at least from a self-interest perspective, if no other. Yet,

The challenges moving forward are how to enhance Latino youth educational levels and skills to be relevant in the information economy and help meet labor force needs; how to rise at a time when federal, State and local budgets are strained if not declining; and how to convince millions of Americans of our shared future, and persuade them that their investment in this community is worthwhile. Yet, much of America is hurting. The broader, more established part of American society is seemingly adjusting to the idea that they may not do better than their parents. Stunningly 60% of workers 55 or older have less than $100,000 in a retirement account according to the Employee Benefit Research Institute. To think they will embrace this emerging population is yet undetermined.

“Why an Aging America Needs Latinos” looks in depth at the economic forces we’re facing, but focuses on strategies that Latino families and communities throughout the nation can adopt to build a better future for themselves and the nation.

While community development strategies have been dominated by social sector thinking, in the future it will be critical to blend the insights of the social, private and government sectors along with creative and committed individuals. By seriously bringing new perspectives to the planning process we can generate new approaches that offer a chance for greater overall impact. An “obliquity” approach is an example. It offers a strategic framework for action. Instead of tackling every issue—health, education, jobs, literacy, housing and more--an indirect approach is probably more appropriate given the financial challenges facing all level of government and foundations as well as other funders.

With the “obliquity” approach in mind, the goal is as follows: Help Latino families to have their children prepared for mainstream success in one generation. This means they have the knowledge/skills, understanding, confidence, and plan to build upon and advance.

This book advances three overarching strategies: 1) help make households smarter through the right amount of critical information; language programs that promote both literacy and English; early childhood education; extended family support and other basic but important programs. 2) strengthen the neighborhoods and their support of families principally by thinking of these areas less as a collection of buildings and more as social networks that can offer support and collective action and 3) coordinate all sectors that can offer financial and other support to advance the local plans created by these neighborhoods.

“Why an Aging America Needs Latinos” looks at areas ranging from the Latino experience, to economic shifts in the world, the United States and Latino communities, to the critical thinking approaches which everyone must embrace to compete in today’s world, to a review of how Latinos see themselves and how they might have to change, to detailed strategies and programs families and neighborhoods should consider to advance both.

In the final analysis the overall burden will fall principally on Latinos. They have the work ethic to meet the challenges, but they need support and it is in everyone’s best interest to help.