Posted on 07/29/2020 7:25:45 AM PDT by Diana in Wisconsin
Covid-19 continues to unleash economic havoc across the world. The financial destruction being caused by the pandemic is shattering already fragile household budgets. In the deep levels of this fog, Millennials continue to face extra layers of pressure from this crisis. This has come in the form of massive levels of student debt, a higher proportion of gig work and retail work, and ultimately no financial cushion of wealth. While some older generations have made it a sport to bash Millennials, they forget that many decades ago a one-income household was enough to purchase a home or that you could work a blue collar job and support a family. Today, blue collar work might keep the lights on but forget about buying a home in most large cities in the U.S. You also have the added layer of the cost of college. A generation ago, you could work summer jobs on a paper route and pay your way to school. Good luck doing that today when some colleges charge $60,000 a year just for a 4-year degree. Many Millennials are being caught in a two-recession trap.
First, the economy has not recovered and we are still at high levels of unemployment. Take a look at the latest figures:
31.8 million people continue to collect unemployment benefits. That is an astronomically large number. But when you look at what jobs are being impacted the most, those in retail, food services, and gig work much of this is done by younger workers:
Retail trade and accommodation and food services are heavily filled with younger workers. These industries require face-to-face interaction for the most part and do not provide a good venue for working from home arrangements – which a large number of white-collar jobs allow (and most require a college degree – see student debt above for this Catch 22). So a vicious cycle emerges here. In order to break into the corporate world, you need a college degree. But not any degree, a degree in a highly sought-after field from a good school (keep in mind there are over 4,000 colleges and universities in the U.S. and many are not worth the money they charge). A 17 or 18 year old has a hard time deciphering the long-term ROI on a college degree but many colleges are happy to stick a person like this into a $60,000 a year degree for general education undergraduate courses. And many this year will not get the in-person experience in the fall.
Going back to the impacted fields, these also employ the highest number of Americans:
Therefore the unemployment figures are off the charts if we really measure them correctly. The unemployment insurance claims paint a very grim picture. Many Millennials graduated college into the Great Recession of 2007 to 2009 and never really recovered since then. This “booming” economy recently was largely driven by inflated asset values (Millennials own relatively little stock and real estate which are the top drivers of wealth) so missed out on this latest bull run. Even now, the stock market is doing relatively well given the reality that we are in a deep depression and the economy is operating on crutches. But hey, you can drive a fancy Tesla (bought with debt), order a box of toys from Amazon (on a credit card), and do it all from your iPhone (financed by your cell provider). There is nothing wrong with these companies or their products but they do not represent the majority of the economy.
And speaking of wealth building, the biggest asset to build wealth for American families is housing. And Millennials keep falling further behind on this one:
In 1981, the median age of a home buyer was 31. Today it is 47. People usually bought homes when they felt ready to settle down and start a family. Today, many simply do not have that security (see previous jobs of younger Americans) and yet somehow older generations berate Millennials. The irony is many go off on Millennials via digital platforms run and operated by Millennials.
Why is this important?
This pandemic is hitting people hard across all age ranges, but younger people are facing a much tougher economic situation. Recessions are wealth destroyers and Millennials are now living through two of the worst recessions in the last 100 years. And as America gets older and many will rely on Social Security and Medicare, older generations should be working hard to ensure there is a good economy for young workers so they can pay taxes to support the needs that are coming downstream. Given how poorly we prepared for this pandemic with fair warning, we need to get on the same page and start planning now for this next phase.
” they forget that many decades ago a one-income household was enough to purchase a home or that you could work a blue collar job and support a family”
Yup. That’s the reality they face.
When you pour 60 million people into the country over a 40 year period and keep letting in 2 million more every year it ends up in absurd prices for housing and low wages because of the intense competition.
Bull Schiff. The financial destruction is being caused by Democrat and RINO politicians that have created the shutdown of the American economy based on a hoax.
That second graph is interesting all by itself. Seeing age bracket participation by industry. And it makes sense seeing the differences.
“A generation ago, you could work summer jobs on a paper route and pay your way to school.”
Huh? I had a paper route. In Jr. High school. Two generations ago, when college was cheaper than one generation ago. You couldn’t pay your way through anything. And you can’t get a “summer job” on a paper route, because the guy doing it the rest of the year wouldn’t let you have it. I did have a friend do my route for a couple of weeks in the summer when I was away, but that’s it.
When you import FOREIGN NATIONALS to take middle class jobs from Americans via H and L work visas then this is what you get eventually - socialism on the road to eventual a one party communist state.
There are certainly a lot of silly young people causing trouble and being jerks.
But not all young people are like that. I really do feel bad for the Millennials and those who are younger. You can trace the rot back a great many years, but to grow up in a world that knows only Bill Clinton, 9/11, the Great Recession, Barack Obama’s fundamental transformation, and COVID-19, you really have to feel that these people have the deck stacked against them.
I think about these young people but at least they have time to recoup, given a decent government that creates opportunity instead of taxing it out of existence.
I also think about the people in their 50’s and 60’s who are making the big savings push for retirement and are losing years that can’t be made up. There’s not enough time for them, unless they work well past than normal retirement age.
The Democrat Party in America is the main catalyst for all this crap unleashed on us and the world as a whole. All this to defeat one man! They’re hiding things so scary and treasonous in nature that they are afraid to feel the wrath of the American people, and will do whatever it takes to beat Trump on Nov 3rd.
FOREIGN NATIONALS to take middle class jobs from American
Democrats logic of their quota system.
Indeed the real root of the problem far to many things are sold for a vote.
Americans are under the 60% mark doesn’t look like any changes coming down the pike any time soon.
“A generation ago, you could work summer jobs on a paper route and pay your way to school.”
I payed my way through (State Uni) school 1984-88. Worked 15 hours M-F in the Uni library and 16 hours Sat-Sun as a line cook, took out student loans, and worked 30 hours/week through the summer while also in summer school. Graduated with 10k in student loans. But tuition was still reasonable. I doubt you could do that now. Maybe at a small community college or online college.
...shortages of basic supplies such as food, weapons, and blankets, British blockades and occupation, cold winters and disease, no basic utilities, TV or internet...oh wait, that was 1775. Yeah, todays youth face so much worse, have to feel sorry for them...[:o
The moronic, Marxist millennials want this country (and western civilization as we know it) destroyed. Many of them deserve what they get if not worse. The few of us millennials that aren’t on board and are still with reality are going to have some difficult years ahead.
Article’s 1st point. Many decades since one income pays all the bills. This has been true throughout my lifetime.
Article point #2 - paper routes/odd jobs to pay for college. Only for community college and that was ~ 40 years ago.
Re: $60k+ /yr cost. Choose wisely. State schools are less than 1/2 that. You can still get a first class education in a good research university. I did.
Re: Millenial whinging - why should I pay attention to someone that says “OK Boomer” to me?
What many believe to have been an orchestrated financial collapse, followed by what many believe to be a sham health “crisis”
Let’s hope the kids are smart enough to figure out that conservatives didn’t want either one.
“I also think about the people in their 50’s and 60’s who are making the big savings push for retirement and are losing years that can’t be made up”
Being laid of or injured after age 50 today is a near death sentence.
An acquaintance lost his middle management job at age 54 in 2009 collapse. No one wants to hire a white male at that age. He was the prime breadwinner. They have since burnt through much of their retirement savings. He does work 2 p/t jobs no benefits. No one will give him f/t due to health insurance cost.
I am 58 and wanted to sell my business last year due to burnout. I have 2 degrees and tons of certifications and training. I am fit and no drug use etc.
Zip zero nada. Zero chance on getting hired f/t with benefits unless I wanted to sell cars.
Kept my business and still plugging away.
The yoots these days are starting with trillions of trillions on their backs in debt. Politicians of all stripes promise the moon and add debt to the future. AI, global wage arbitrage, debt, outsourcing, etc. The yoots are screwed.
People always cry about how hard it is now. No doubt. But what they forget is many had homes much smaller than today’s standards. Many households had 1 car, not a car for every family member, including teenagers. 1 phone, no cell phone, no daily starbucks. Materially, families have much more and expect much more.
When I was a stay at home Mom, no income, our lifestyle was much less extravagant.
If people are making more on unemployment than they were working, how can they not be paying their BILLS??!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.