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Technology—A Language Best Spoken by the Young?

ONE HUNDRED YEARS ago, when the first members of the G.I. Generation were turning 10 years old, the one invention against which all others are often compared hadn’t even been invented yet.

Any guesses as to what I may be referring to?

Perhaps the expression has become a tad archaic, but I am referring to “sliced bread,” as in “that’s the greatest thing since . . .” Hard to believe, but while the pop-up toaster first came to market in 1919, sliced bread didn’t make the scene until 1928.

But those first ten years of the G.I. Generation’s entry into the world were marked by numerous other technological advances. The previous decades’ advancements in electrical engineering were finally being applied as suburban homes across the country became wired, and new electric-powered gadgets, such as vacuum cleaners and washing machines, entered the market. Transcontinental long-distance telephone calling became a reality, the Model T automobile started being mass-produced, and, instead of looking to the skies, man could actually look down from the sky onto the earth from man-made flying machines. Other inventions during those first G.I. Generation years included Bakelite, cellophane, stainless steel, tea bags, instant coffee, disposable razor blades, escalators, and the zipper.

Perhaps those young members of the G.I. Generation were amazed by all the newfangled gadgets and subsequent advancements in technology as the generation matured, or maybe they just took it all for granted, as seems to be the case with Gens Y and Z with all the amazing “new” technology that has become mainstream during their thirty-plus years of birth and aging.

As of the first year of Gen Y births in 1985, most of the cyber-related technologies we take for granted today did not exist.

In 1985 most folks thought “Morse” if you said the word code. I’m pretty sure that “computers” and/or “programming” would come to mind first when code is referenced today to a member of Gen Y or Z.

While the “Internet” had been invented by Al Gore¹ prior to 1985, only a relative handful of people knew of its existence until development of the World Wide Web in 1990 ushered in the age of the modern Internet. Back in 1985 “Amazon” was just a South American River, “Google” was something a 2-year-old might say, “Twitter” was a succession of sounds or trembling motion, and “Yahoo” was an epithet for a hick or redneck.

Back in 1985 “Apple” was found in pies or eaten as a snack. Today Apple is the world’s largest information technology company, which offers a plethora of tools and gadgets that much of the world finds indispensable in their day-to-day lives.

While rare, there was a commercially available, handheld cellular mobile phone back in 1985. However, it was bigger than a brick, had limited service areas, and provided only about thirty minutes of use per ten-hour charge. Oh, and unlike today’s cell phones that can do just about everything but toast the previously referenced slice of bread, that first cell phone could only send and receive calls.

In 1985 most televisions were still boxlike and offered little more than color or black and white. VHS was still the primary standard for recorded movies, and the compact cassette tape the most popular medium for listening to music.

I could go on . . . and on . . . and on . . . because the technological advances of the past thirty years are truly astounding, especially to us older folks who came of age when color TV was still considered somewhat of a novelty. For today’s Gen Y and Z youth, all of this amazing technology is second nature. They can navigate through its complications with ease, and adapt to it quickly as it evolves.

All of this bodes well going forward as technological advancement is often a bastion of the young. Think about it: Many of the technologies of the past thirty years that I referenced above were developed by men and women when they were in their youth. Baby Boomer Steve Jobs initially invented the Apple desktop computer and operating system while in his teens and early 20s. Sure, he kept inventing new products and systems as he aged, but most of it as an evolution of his original inventions and with the help of a cadre of mainly youthful researchers.

Cyber-powerhouse Microsoft was created by two 20-year-old Boomers, Google by two 20-something-year-old Gen Xers, Twitter by young Gen Xers, and Facebook by young college students on either edge of the Gen X to Gen Y transition years.

With so much technological advancement tending to be fostered by the young, America’s continued technological success and prowess will undoubtedly be assured by a large Gen Y that has grown up “speaking tech as a second language.”

But don’t count the Boomers out! While Silicon Valley’s venture capitalists openly display bias by directing most of their start-up capital to youthful tech entrepreneurs, researchers have determined that this trend may be shortsighted. Prominent venture capitalist Vinod Khosla said, “People under 35 are the people who make change happen; people over 45 basically die in terms of new ideas.” Or, perhaps more dismissive, Facebook founder Mark Zuckerberg’s pronouncement that “young people are just smarter.”

However, researchers have determined that this trend may be shortsighted. For example, researchers from the Kauffman Foundation and various universities beg to differ with such views, pointing to Apple’s Steve Jobs, who continued to create amazing technology well into his 50s. A Northwestern University economist determined that the average age at which Nobel laureates of the 20th century performed their prizewinning work and the average age at which inventors had their greatest achievement was 39. Furthermore, he found that twice as many Nobel winners were older than 50 than younger than 26, and that the previously cited average age had climbed up to 45 by the second decade of the 21st century.

A Duke researcher acknowledges that young tech inventors will have an edge in developing new technology because they have grown up using existing technologies and understand them better than their Boomer and Gen X parents. However, the young tech whizzes generally lack cross-disciplinary skills and may not understand how to best utilize new and evolving technology in fields beyond computer gaming app building and social media development. Thus, older tech developers may be crucial for developing technologies that merge into and add to the modernization of other fields, such as healthcare and transportation.

Sounds like a win-win!

So what of the market for “tech”? you are undoubtedly wondering.

And yes, I have approached this sector in a different manner from the preceding “sector” chapters. I have done so because while technology in some regards (especially cyber) is a separate entity, it is also a significant component of all other sectors. And, because youth is considered the primary driver of technological advancement, I believed I should start there.

That said, from a demographic perspective I foresee “tech” remaining a bull market going forward. Gen Y and the oncoming Gen Z have grown up with technology infused in their day-to-day lives like no other generations before them, and I believe their members will continue to inhale all things “tech” in the years to come—from virtual-reality gaming systems, to electric cars, to the nascent hover boards, to some new technological wonder incubating in the mind of a 16-year-old—build it and they are going to buy it in droves.

And, as with tech development, don’t count us Baby Boomers and Gen Xers out. While we may not be nearly as technologically savvy as the younger generations, we love our tech gadgets, too, and will continue to buy them. However, we are much more likely to retain our existing technological gadgets and services for as long as possible and may be more resistant to change.

And I’m not the only one who thinks Boomers will remain a potent force in the technology market. Just Google “Baby Boomers and technology” and you can find dozens of articles that describe how Boomers will continue to embrace technology as much as younger generations. Here are a few selected quotes:

“Contrary to many public and media perceptions, Baby Boomers have a real interest in continuing adoption of technology.”

“Baby Boomers are no longer the inferior demographic when it comes to using modern technology and the web.”

“Health related technology is much more important to [the Boomers] than social media or apps.”

And take special note of that last one, as technology’s intersection with healthcare seems to be a predominate theme with regard to Boomers’ future relationship with technology.

With regard to Boomer tech preferences, a word of caution that Boomers will likely prefer tech products that aren’t complicated and cluttered with excessive features. And, according to the American Association of Retired Persons, “Boomers expect technology to adapt to them.” We will also need more hand-holding and assistance with making tech purchases than do younger customers.

Consider this: I used to enjoy walking into Best Buy. Now it just gives me a stomachache. It is not a big deal; I am just not comfortable there. When my favorite laptop developed a power problem, off I went to the Best Buy from where I had bought it. The power cord connection at the computer connected and disconnected independently. If I held it with my hand, it would stay on. But once I released it, the computer would switch from AC to battery. I tried various remedies like tape and glue but eventually my MacGyver fixes fell short.

So there I was, face-to-face with a Generation Y member of the Geek Squad. I explained the problem, an electrical connection gone south. I anticipated a quick reply about a simple fix, replace the connectors. Instead I got a bewildered silent stare and then a sympathetic smile.

“How old is this machine?” he asked.

I thought for a moment. “Three years old, I think.”

“Why would you want to fix it?” he asked.

“Because it works perfectly and does everything I need and the only problem should be a simple fix.” I realized that to him three years was an eternity and it was long since past time to upgrade. But I stood my ground. I was in the right. Common sense was on my side. I looked around to see if there were any supporters. There were none.

I used to love to shop. I still like to buy new clothes, and I don’t think my look or color choices date me. I can hold my own in a car dealership, whether buying a new or used car. I am comfortable buying lawn mowers, generators, chain saws, tractors, and snow blowers. I am addicted to Harbor Freight. When I go there, I buy things I don’t need, things that I will never use.

But now when I walk into Best Buy or similar stores, I am lost. I cannot buy a laptop, tablet, printer, television, or phone because I am not qualified and can’t speak the lingo. Technology has passed me by. Thus tech retail stores like Best Buy need to provide more customer service oriented to helping older customers navigate this ever-changing world of technology. Whichever retail technology company can successfully cater to the older, tech-challenged population will undoubtedly earn a large cadre of devoted customers.

Bottom line with regard to any demographic impact on technology is that there appears to be no downside but instead just a steady upside surge.

As mentioned above, technology is way bigger than just itself, so let’s look at another intersection between technology and demographics.

My Generation Y daughter Hayley and I both enjoy automobiles and we both have Mustangs. Hayley’s Mustang is a 2006 300hp V6 automatic fastback that is modified and lowered. My Mustang is a 1965 271hp V8 4-speed K code coupe. And yes, my car can beat Hayley’s car.

The cars serve as a metaphor for the technological comprehension differences between my daughter and me and are a clear indication of how technology really changes. It is easier to tell you what my car doesn’t have than explain the differences. My 1965 Mustang does not have power ABS disc brakes, power steering, power windows, climate control, power seats, traction control, fuel injection, airbags, computers, heated seats, seat belts in the rear seat, rear defrosters, backup lights, automatic door locks, remote controls, FM radio or CD player, electronic ignition or seventeen-inch mag wheels. Cars are great examples of how technology is changing everything, for the better. Hayley’s car could easily have a serviceable life of 300,000 miles if properly maintained. The 1960s-era cars were ready for the wrecking yard at 100,000 miles. Most important, of course, is the fact that Hayley’s car is much safer than mine in the event of an accident. So if you invest in technology blindly, you could discover that your product or service is the equivalent of a 1965 Mustang.

If you had invested $1,000 in Apple stock after it went public in 1980, its value as of today would be worth well north of $300,000, not even accounting for annual dividend payments. Of course, you could have plowed that $1,000 into any one of dozens and dozens of other tech companies back in 1980 and lost every dime. I don’t believe that tech is as bad as biotech with regard to the number of failed companies, or number of investors who’ve lost their shirts, but tech failures are legion and tech companies can get ahead of themselves. With this latter thought, consider the dot-com bubble of 1997–2000, which saw massively inflated tech stock prices collapse and dozens of companies subsequently fall into bankruptcy and/or dissolution.

There are hundreds of established tech companies from which an investor can choose and probably an equal number of nascent tech companies that are still working on bringing a new product to market. I am just going to list a few established companies, and, if interested in investing in the sector, I know that you will conduct due diligence by looking at these companies’ histories, financials, fundamentals, etc., and gain an understanding as to what technology exactly the company is involved with. You will also carefully consider the world’s current economic status and projections for America’s continued economic growth. Right?

As for any possible Apple-like fliers, I’ll leave that for you to find on your own. But don’t run off and by a boatload of “Acme Start-Up Tech” because your coworker knows someone who works there who said the company was about to release a new killer app that’s going to change the world.

Or go ahead! It’s your money. . . .

Apple (AAPL)

Jabil Circuit (JBL)

Microsoft (MSFT)

Facebook (FB)

Tesla Motors Inc. (TSLA)

Micron Technology (MU)

Google (GOOG)

International Business Machines (IBM)

Intel Corp. (INTC)

Cisco Systems (CSCO)

Linked In (LNKD)