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United States News Title: The Next Recession Will Destroy Millennials As a result, Millennials have not benefited from the dramatic rebound in housing prices that has occurred since the financial collapse and the foreclosure crisis. Millennials have also been forced to shell out hundreds of billions of dollars in rent as housing costs have skyrocketed in many urban areas. This represents a large generational transfer of wealth from the young to the old. Boomers own the houses and bar municipalities from building more of them, thus benefiting from rising prices and soaking up endless rent checks forked over by younger and poorer families. Cost pressures have also made it difficult or impossible for Millennials to save or invest. The share of Americans under the age of 35 who own stocks has meandered down from 55 percent in 2001 to 37 percent in 2018, in part because employers are less likely to offer retirement-savings plans and in part because Millennials have nothing left over at the end of the month to put away. Virtually all members of the cohort are “not saving adequately,” experts warn, and two-thirds of Millennials have zero retirement savings. This means that Millennials have benefited not a bit from the decade-long boom in stock prices, as their parents and grandparents have. Millennials are worth less on paper than members of older generations are, and are worth less on paper than members of older generations were at the same point in their lives. The net worth of your average Millennial household is 40 percent lower than for Gen X households in 2001 and 20 percent lower than for Baby Boomers’ households at the end of the 1980s. Could the Millennials make up this lost ground? Perhaps, if wage growth suddenly and dramatically accelerates, urban cores start to build millions of new homes, and Congress announces a student-loan debt jubilee. But financial experts consider it unlikely. Millennials missed out on the big asset boom that occurred between 2010 and the present, and “appreciation is unlikely to be as rapid in the near future as it was during the recent period,” argue economists at the Federal Reserve. “With the baby boomers occupying most of the top jobs and much of the housing, Millennials are doing less well than their parents,” concluded Credit Suisse. “We expect only a minority of high achievers and those in high-demand sectors such as technology or finance to effectively overcome the ‘millennial disadvantage.’” The next recession—this year, next year, whenever it comes—will likely make that Millennial disadvantage even worse. Already, Millennials have put off saving and buying homes, as well as getting married and having babies, because of their crummy jobs and weighty student loans. A downturn that leads to higher unemployment and lower wages will force Millennials to wait even longer to start accumulating wealth, making it far harder for them to accumulate any wealth at all. (Compound interest is magic, after all.) Their trajectory, already terrible, might get even worse. And Millennial suffering won’t just hurt Millennials. There is accumulating evidence that the economy is more sclerotic and slower-growing than it might be if the Millennials were able to buy homes, have families, start businesses, and spend like other generations—if the young were not existing just to pump up asset values for the old. Which reminds me—there’s one generation that might fare even worse than Millennials: Generation Z. Poster Comment: The key excerpt from the article. Read the source for supporting links.
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#1. To: Tooconservative (#0)
If the next generation decides that system does not work for them, or even works against them, they will dump it into the dustbin of history. When their time comes. World history shows numerous examples.
The elites will have pulled the ladder up behind them, having already concentrated the wealth in their own hands. The Millennials are definitely getting that message. Look at the article I posted in the sidebar with the WSJ poll. And this will make Millennials easy prey for the Left's promises. They won't get what they're after but it will be the end of an era. World history often gets pretty sad when the dominant empire grows weak and internally restive.
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