Posts tagged ‘millennials’

May 27, 2015

Is a ‘Great Reset’ of our economy inevitable?

by Grace

Are we experiencing an end to the long-term trend of a rising standard of living in our country?  Are we due for a “Great Reset” of our economy, one that is inevitable due to the competing interests of workers and consumers?

Tyler Cowen warns “Don’t Be So Sure the Economy Will Return to Normal” and asks “what exactly are we experiencing?”

One relatively optimistic view is that observed deficiencies — like slow growth in real wages and the overall economy, persistently low interest rates and low levels of labor participation — are merely temporary. In this view, these problems will dwindle after manageable problems like high levels of public or household debt have been reduced.

Another commonly heard view is that we made the mistake of letting the last recession linger too long, allowing some of its features to became entrenched. That analysis suggests that if we correct past policy errors, whatever they may have been, an underlying normality will re-emerge.

There are some nuggets of truth in both of these arguments, but there is a much more disturbing possibility that could turn out to be more accurate: namely, that the recession was a learning experience that we haven’t fully absorbed. From this perspective, the radical and sudden changes of the financial crisis were early indicators of deep fragility and dysfunctionality.

Slowly but surely, we may be responding to these difficult revelations by scaling back our ambitions for the economy — reinforcing negative trends that were already underway. In this troubling view, we have finally begun to discover some unpleasant truths. Borrowing a phrase from the University of Toronto economist Richard Florida, it’s possible that we are experiencing a “Great Reset.”

A reset is hard for us to see because changes “seem to be gradual and slow”.  And new government policies meant to steer the economy “are no more than changes at the margin”.

Are millennials bearing the brunt of this reset?

Amid much talk about income inequality and an increasingly two-tier economy, it appears that a “heavy burden of adjustment in the overall labor market is being borne by the young”

… Wages for the typical graduate of a four-year college have dropped more than 7 percent since 2000, and the labor force participation rate of the young has been falling. One consequence is that young people are living at home longer and receiving more aid from their parents. They also seem to be less interested in buying their own homes.

Megan McArdle explains that we brought the “Great Reset” on ourselves, with our desire for rising, stable wages that conflicts with cheap services and goods.

The average American is at the heart of this story — as the victim and as the perpetrator. We suffer as employees because we exert influence as consumers.

Is a reset inevitable?

… The reset may not be fair. It will certainly not be easy. But it may be necessary.

———

Tyler Cowen, “Don’t Be So Sure the Economy Will Return to Normal”, New York Times, May 15, 2015.

Megan McArdle, “U.S. Workers Brought the ‘Great Reset’ on Themselves”, Bloomberg, May 19, 2015.

Advertisements
February 3, 2015

Baby Boomers’ kids are doing worse than their parents

by Grace

The Typical Millennial Is $2,000 Poorer Than His Parents at This Age

More young people are living in poverty and fewer have jobs compared their parents’ generation, the Baby Boomers, in 1980.

Even though a higher percentage of today’s young people have college degrees, more live in poverty.

 

20150201.COCMillenialsPoorerDegreed5

 

Wages are lower for those who are working full-time.

 

20150202.COCMillenialsLowerWages3


Unemployment rates were lower and labor participation rates for young people were higher in 1980
, measures that are consistent with the higher poverty rates of today.  Another related cause may be that more Millenials are still in college at later ages than Baby Boomers were at the same ages.  But today’s high college dropout rates mean the younger generation will fail to reap the financial benefits of a college degree, and will even be penalized since a few years of college may be worse than never enrolling.

The immigrant effect

It’s also worth pointing out that the United States has absorbed millions of immigrants over the past 30 years, often from poorer Latin and South American countries. (The Census notes that the share of ethnic minorities has doubled over the last 33 years.) It’s possible that, even as these young families have raised their own living standards by moving to the U.S. and contributed to a growth economy, their below-average wages, when lumped into the aggregate, make it look like native-born families’ wage growth is worse than it really is.

Lower marriage rates may be a factor.

Unlike prior generations of young adults, the majority of Millennials have never been married

Finally, the “jobless recovery” we have been experiencing ties into the financial misery that Millenials are feeling today, especially considering that 1980-1982 was a time of back-to-back recessions.

———

Derek Thompson, “The Typical Millennial Is $2,000 Poorer Than His Parents at This Age”, Atlantic, January 31, 2015.

September 2, 2014

Millennials — narcissistic or nice?  cynical yet empathetic?

by Grace

The millennial generation, those born after 1980 and before 2000, have been criticized as narcissistic and entitled.  But some recent press suggests this is a bum rap, and that these young people are nice, compassionate, and hard working.

Psychology professor and author Jeffrey Jensen Arnett defends millennials, and recently shared his “warm and benevolent views” of these “emerging adults”.

One of the most common insults to today’s emerging adults is that they’re lazy. According to this view, young people are ‘slackers’ who avoid work whenever possible, preferring to sponge off their parents for as long as they can get away with it. One of the reasons they avoid real work is that have an inflated sense of entitlement. They expect work to be fun, and if it’s not fun, they refuse to do it.

But millennials are hard workers.

“So, yes, emerging adults today have high and often unrealistic expectations for work, but lazy? That’s laughably false. While they look for their elusive dream job, they don’t simply sit around and play video games and update their Facebook page all day. The great majority of them spend most of their twenties in a series of unglamorous, low-paying jobs as they search for something better. The average American holds ten different jobs between the ages of 18 and 29, and most of them are the kinds of jobs that promise little respect and less money. Have you noticed who is waiting on your table at the restaurant, working the counter at the retail store, stocking the shelves at the supermarket? Most of them are emerging adults. Many of them are working and attending school at the same time, trying to make ends meet while they strive to move up the ladder. It’s unfair to tar the many hard-working emerging adults with a stereotype that is true for only a small percentage of them.”

Society’s elders, meaning anyone older than 35, are encouraged to accept the new normal that is defined by the emerging adulthood stage of life.

The origins of the many prejudices against today’s emerging adults are complex, but maybe one key reason is that many of their elders still use old yardsticks to measure their progress. The pace of social, economic and technological change over the past half-century has been mind-boggling, and what is ‘normal’ among young people has changed so fast that the rest of society has not yet caught up. Many observers are still finding them wanting if they are not married and settled into a stable job by age 23 or 25, even though that would be unusually early by today’s standards. Understanding that a new life stage of emerging adulthood is now typical between adolescence and young adulthood, and that it is a time when change and instability is the norm, will help make it possible to ease up on the negative stereotypes and learn to appreciate their energy, their creativity, and their zest for life.

The New York Times tells us “The Millennials Are Generation Nice”, at least according to Pew research that found they are not entitle but rather “complex and introspective”.

What Pew found was not an entitled generation but a complex and introspective one — with a far higher proportion of nonwhites than its predecessors as well as a greater number of people raised by a single parent. Its members also have weathered many large public traumas: the terrorist attacks of Sept. 11, costly (and unresolved) wars, the Great Recession. Add to those the flood of images of Iraq and Katrina (and, for older millennials, Oklahoma City and Columbine) — episodes lived and relived, played and replayed, on TV and computer screens.

Both cynical and empathetic

There’s something to be said for experiencing  “large public traumas” through digital media that makes us relive them in a more personal way than previous generations did.  It could have the effect of making a person more cynical, yet more empathetic in some ways, an apt description of millennials I know personally.

———

Jeffrey Jensen Arnett, “Growing-ups”, Aeon, April 17, 2014.

Sam Tanenhausaug, “Generation Nice”, New York Times, August 15, 2014.

Tags:
February 19, 2014

Recent college graduates suffering worst unemployment rates in 50 years

by Grace

Millennials of all education levels are suffering the worst unemployment in 50 years.

20140217.COCMillennialUnemploymentRatesAtlantic


Whatever the claims that millennials are an entitled generation, it’s clear they are facing employment challenges more difficult than their parents did.  They are also facing the twin problems of unprecedented rising debt and falling wages.

20120527.COCDebtEarnings1

Related:

January 24, 2014

Some career advice is timeless, and some is only recently relevant

by Grace

Successful entrepreneur Jason Nazar has some advice for 20-year-olds.

… Call me a curmudgeon, but at 34, how I came up seems so different from what this millennial generation expects.  I made a lot of mistakes along the way, and I see this generation making their own….

Some of Nazar’s suggestions have been around for many years, while others are new and relevant to the current business environment.  Here are a few from his list of “20 Things 20-Year-Olds Don’t Get .

When it comes to communication, young people seem to prefer texting and email over talking.  But sometimes a personal touch makes a difference, and the sound of your voice can be important.

Pick Up the Phone – Stop hiding behind your computer. Business gets done on the phone and in person.  It should be your first instinct, not last, to talk to a real person and source business opportunities.  And when the Internet goes down… stop looking so befuddled and don’t ask to go home.  Don’t be a pansy, pick up the phone.

When you’re new on the job, working hard is a must.  Maybe there will be time later on to coast, or maybe not.

Be the First In & Last to Leave ­– I give this advice to everyone starting a new job or still in the formative stages of their professional career.  You have more ground to make up than everyone else around you, and you do have something to prove.  There’s only one sure-fire way to get ahead, and that’s to work harder than all of your peers.

Nobody wants the challenge of managing an employee who lacks initiative and needs to be told what to do.

Don’t Wait to Be Told What to Do – You can’t have a sense of entitlement without a sense of responsibility.  You’ll never get ahead by waiting for someone to tell you what to do.  Saying “nobody asked me to do this” is a guaranteed recipe for failure.  Err on the side of doing too much, not too little.

This one caught me a little by surprise since I have sometimes found myself buying  into the idea that social media ranks highest in what makes a company successful.

Social Media is Not a Career – These job titles won’t exist in 5 years. Social media is simply a function of marketing; it helps support branding, ROI or both.  Social media is a means to get more awareness, more users or more revenue.  It’s not an end in itself.  I’d strongly caution against pegging your career trajectory solely to a social media job title.

If I thought they would take heed, I would send this list to some young people I know.  It’s mainly good advice.

Related:

Tags:
November 26, 2013

Will the millennial generation be skipped over in its quest for prosperity?

by Grace
20131125.COCEuropeYoungUnemployment2

CLICK IMAGE TO SEE DETAILS

College-educated young Europeans are asking themselves what went wrong in their quest for a lifestyle at least as prosperous as that of their parents.

The question is being asked by millions of young Europeans. Five years after the economic crisis struck the Continent, youth unemployment has climbed to staggering levels in many countries: in September, 56 percent in Spain for those 24 and younger, 57 percent in Greece, 40 percent in Italy, 37 percent in Portugal and 28 percent in Ireland. For people 25 to 30, the rates are half to two-thirds as high and rising.

Those are Great Depression-like rates of unemployment, and there is no sign that European economies, still barely emerging from recession, are about to generate the jobs necessary to bring those Europeans into the work force soon, perhaps in their lifetimes.

Dozens of interviews with young people around the Continent reveal a creeping realization that the European dream their parents enjoyed is out of reach. It is not that Europe will never recover, but that the era of recession and austerity has persisted for so long that new growth, when it comes, will be enjoyed by the next generation, leaving this one out.


Meanwhile, in the United States:

For the first time in memory, adults in the United States under age forty are now expected to be poorer than their parents. This is the kind of grim reality that in other times and places spurred young people to look abroad for opportunity. Indeed, it is similar to the factors that once pushed millions of people to emigrate from their home countries to make their home in America. Our nation of immigrants is, tautologically, a nation of emigrants.

July 11, 2013

Student loans were the only kind of debt that grew during the latest recession

by Grace

All other types of debt declined.

… only student debt grew during the Great Recession. Federal policy has encouraged this habit. In the two years following the financial crisis, spending on student loans grew 19 percent and 18 percent, respectively.

20130705.COCStudentDebtGrowth1

‘Good Debt vs. Bad Debt’

Good debt is an investment that will grow in value or generate long-term income. Taking out student loans to pay for a college education is the perfect example of good debt. First of all, student loans typically have a very low interest rate compared to other types of debt. Secondly, a college education increases your value as an employee and raises your potential future income.

‘Student Loan Problems: One Third Of Millennials Regret Going To College’ – Forbes

… About one-third of millennials say they would have been better off working, instead of going to college and paying tuition.

That’s a according to a new Wells Fargo WFC +2.06% study which surveyed 1,414 millennials between the ages of 22 and 32. More than half of them financed their education through student loans, and many say the if they had $10,000 the “first thing” they’d do is pay down their student loan or credit card debt.

After the experience of the last few years, I would say it’s not a good idea to generalize that college debt is always “good debt”.

Related:

%d bloggers like this: