Posted on 04/06/2020 9:23:01 AM PDT by GuavaCheesePuff
The last time a serious economic downturn hit in 2008, Evan Schade was in high school and the crisis seemed like a news event that happened to other people. This time, as the coronavirus has brought the economy to its knees, it has become a personal affair.
When nonessential businesses were closed last month in Kansas City, Mo., where he lives, Mr. Schade, 26, lost his job at a carpet store and almost all of the shifts in his second job at a coffee shop. His girlfriend, Kaitlyn Gardner, 23, was laid off from a different coffee shop.
The money they have in their bank accounts, just over $1,000, is enough to cover only this week’s $800 rent check — forget about his $300 student loan payments or the health insurance he was hoping to finally sign up for. The couple have spent their time at home applying for unemployment and fruitlessly looking for new work.
“I know so many people my age who are going through the exact same thing,” Ms. Gardner said.
The youngest American adults are facing what is, for most of them, the first serious economic crisis of their working lives. By most measures, they are woefully unprepared.
(Excerpt) Read more at nytimes.com ...
Bingo, it has to be emphasized:
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Burdened with debt that THEY CHOSE.
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Kids jump all over credit cards that give them an illusion of wealth in order to achieve the status they crave in order to be more competitive socially.
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Most have no idea what interest they are paying much less any clue how to pay it off.
My graduating senior (will be done with his newly online coursework in June—a BS in Finance/Accounting) just posted his resume this past weekend to Indeed, Monster, and federal government websites and today is getting contacted. Might be some scams, but it looks to me that seom hiring is still going on. Especially federal.
How much of the economic decline can be blamed on the doom and gloom stories in the Slimes?
“Facing an Economic Crisis”
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The crisis is the addiction of easy credit.
They are both getting $1200.00 this month. That will pay 2 mo. rent.
So he has college student loans that netted him a job at a carpet store and a coffee shop. Shame on the college that took his money. He could have gotten those jobs right out of high school during the Trump boom.
After all, none of US had to work for our living or pay back our debts. Why should the "okay boomer" generation have to?
“Most have no idea what interest they are paying much less any clue how to pay it off.”
...says the American who has enjoyed the fruits of federal deficit spending for the past 30 years, whether you like it or not or agreed to it or not, that is the case.
There are two fundamental economic truths in the US today.
1. We aren’t paying back our National Debt (we may inflate it away, but that’s not the same thing)
2. Many, if not most kids are not paying back their student loans
You can get all huffy about it, but it doesn’t change the fundamental truth. They aren’t paying and we aren’t paying.
So where do we go from here? I think a lot of people are going to sound like these two whiny kids in the not too distant future.
I live next door to a provost at a private college. He said that for most students, the first two years of college are now spent learning things that used to be required to be learned in high school and were prerequisities for college.
Yes. I think the real solution is to get rid of government schools. High Schools today are a waste of time. People need better options (school choice, home schooling, online distance learning, etc.).
Ideally, when a person is 18, they ought to know all of the basics needed to live a normal life and pursue most careers. We are no where near that today, because we don’t actually educate kids.
Bingo. In 1980-1982, bottom fell out of economy (12% unemployment in Wisconsin), interest rates on student loans were 13-15%. Top that off salaries were pegged to minimum wage of 2.65$/hr., and bankruptcy laws were much more unforgiving. I re-enlisted after two years out to bridge. Thus, I am not that sympathetic to whiny millennial hipsters with art history degree pouring coffee.
Nobody gets Debt OUT OF YOUR LIFE like Dave Ramsey.
Tired of living Paycheck to Paycheck with nothing to show for it?
I agree.
The solution (and no one really knows what the solution is going to be) is going to be something everyone considers "impossible" today.
I see President Trump doing interesting things related to the Federal Reserve. I see the world blaming China for a lot of economic pain. I see a world of massive debt that simply isn't going to be paid.
I really think we're heading for a Jubilee. Basically all debts cancelled. Take the pain! There isn't an alternative. Start over with an economic system that makes debt much less likely.
Didn’t get free money, like the banks, insurance companies, hospital associations, and pension funds. China Virus Masters exposed.
”When nonessential businesses were closed last month in Kansas City, Mo., where he lives, Mr. Schade, 26, lost his job at a carpet store and almost all of the shifts in his second job at a coffee shop“
And older people involved with nonessential businesses have somehow been exempt from this? Get real.
Just another attempt to divide us by this anti-American rag.
Yes, they are screwed if they just roll over and give up. Don't feed into their fears.
Some businesses are booming right now. Computer companies that offer virtual meetings, grocery stores that offer curb side pick-up. Amazon and all delivery services. Even some furniture stores! What you say? Try to buy a child's desk these days. They are sold out, even at Goodwill and Salvation Army. It's homeschooling and remote learning.
The economy isn't dead. We are experiencing a massive redistribution of money from one sector of the economy to another, from one citizen to politicians like Pelosi and Burr.
Don't feed into your kids fears. Be positive. Point out the opportunity.
Avoid debt as much as you can. And if you owe, seek to get out of it like a coyote in a leg snare.
They’ll be fine. About to get a $2400 deposit between them. They’ll also get “enhanced unemployment”, unless they come up with something better to take them through the year. And they only need to cough up $400 apiece for rent. A few hundred in stupid student loans on top of that still brings them to modest obligations.
“The Young” are (the majority of them) the idiots who voted in the purple lipped muslim banana peeler for eight years, and keep pitching violent tantrums for the Senile Socialist from Vermont. So I have a hard time conjuring up much sympathy.
I have an even harder time for those who chose to go 100K into debt for a woke black communist feminazi dyke studies degree and now find themselves working for $8/hr at Starbucks. Choices. Choices.
I thought the covid stimulus suspended student loan payments for 6 months.
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