Why Young People Are Broke

Robert Reich debunks the myth that millennials and generation Z are lazy, and breaks down why young people aren't doing as well as their parents.

Despite making up the largest portion of the workforce, millennials own less than 5% of all US wealth. In 1989, when baby boomers were the same age, they controlled 21% of the nation's wealth.

When young people say the economy is rigged against them, this is what they mean.

#millennials #genz #wealth

[lisaarehart]

They are told to get a degree, then find out that degree will give them the opportunity to make as much as a dropout, but with the benefit of starting their lives out with a mountain of debt.

[ili]

I learned in grad school that universities take on zero risk and are woefully unaccountable for academic bullying, while students take on all risk — both financially and in opportunity costs. It’s incredibly stressful, because if you’re mistreated, it’s difficult not to be deferent in order to please those who have so much power over your life. There’s a tendency to simply hope a toxic situation will subside. But if it doesn’t turn out ok — even if you successfully complete all the courses — they may not confer a degree, leaving you screwed

[deannealbrecht]

My sons both worked at least two jobs with a minimum of 80 hours/week and still struggle. That's been the issue for their entire working life.

[Mantaracer]

Whole problem seems to me is coming from the HUGE wealth gap created by the government and corporations for the last 40 years!

[carmadefries]

As a Gen Xer, we aren't living middle class lives, either. Husband is a hard worker, I'm disabled. You can't make it in America anymore unless you come from wealth or a wealthy person helps you. And, if you're disabled, you can't even afford your medical bills.

[nomodzreal]

The only reason that I as a millenial am making anything close to a living wage (70k) a year is because I survivied on food stamps and section 8 housing. I had the benefit of attending community college on Pell Grants and a small amount of loans (<$5000), I met someone who got me on the career track I am now in networking. And to top it all off I am in a relationship with someone who already had a mortgage and own 1 out of the 2 cars, the second of which I was able to take ownership of.

Success is not the work of one single person, it is the work of millions creating a society that gives support to those in need, and the work of dozens to support each other mentally/emotionally/and financially.

Noone, and I mean noone, has ever done it all on their own.

[stevechance]

In the early 80's, fulltime tuition at our state university was $375 and the minimum wage was $3.25 an hour. Now tuition is eight thousand dollars and the minimum wage is $7.25 an hour. Anyone see a problem here?

[rosemarywessel]

And once again, Gen X doesn't exist. We're the ones that saw the conservatives and "trickle down" economics robbing our future out from under us. I'm the youngest in my family - the only Gen Xer. I saw my older siblings work their way through school on part time jobs, Pell grants, low cost of living and low tuitions. It started disappearing before I got to college. Then by the time I hit the workforce, it was a constant battle of climbing uphill against the landslide of downsizing and outsourcing. By the time Millennials came along, they didn't stand a chance. The only difference was, they never knew anything different. We were the ones to watch it slip away just as we were supposed to get a slice of that pie.

[gkbetfb]

Heartbreaking. I was born in 1993, and seeing the staggering effects of all the topics you've covered first hand is sorta surreal. Seen it all going up, feel it all coming down.

[gwills]

"Millennials are the largest cohort of the work force (35%) but own only <5% of had >21% at the same age"
"Millennials are more educated, have broader work experience, work longer hours than Boomers at the same age"
- from "A Generation of Sociopaths, How the Baby Boomers Betrayed America" Bruce Cannon Gibney

[lawyer]

The Quantitative Easing (QE) policies established by the Federal Reserve some 13 years ago have been transferring wealth from the bottom to the top. Specifically, the Fed’s QE policies have caused asset prices (stocks, houses) to rise dramatically. Everyone who wants to buy one of these assets pays more than the asset’s fair market value, and everyone who sells one of these assets receives more than FMV. Thus, the rich are getting richer, and first-time homebuyers and workers who are buying stocks for their retirement years are getting screwed. Either force the Fed to end its QE policies or institute a wealth tax to claw back most of the wealth that the Fed has transferred to the billionaires and multimillionaires.

[julieallen]

It has failed all of US! I've worked my backside off all my life, and met with all kinds of BS. I'm a so called boomer who has really been dumped on. The worst part - I'm not the only one. We are ALL toast!

[Cygnus]

I have had better paying jobs than my parents most of my adult life. By the age I'm now, they had their own house and piece of land. I still can't afford one...

[roboco]

70 years of Republican tax breaks sure couldn't be an issue...

[eddyzalinski]

Generation X was saying this over twenty years ago, but nobody listened to us.

[LiluBob]

Thank you for this. I am 66 years old and will be passing this on to my kids. They work so hard, and are basically spinning their wheels in a mud hole, blamming themselves for not getting ahead. They feel like failures. And nothing I say helps. I hope this does. I hope this helps to give them some perspective.

[chadevans]

How do you make college free when college is now a for profit business?

[tylerhackner]

As a Zoomer, thank you for being a boomer who cares about young people

[formercanadiancitizen]

Lived on my own while in high school and only worked 2-3 days a week in a restaurant, that’s what living in the 70’s was like

[dylanschmidt]

"Young people", Robert calls us. Meanwhile the Grim Reaper's hanging out at my place rehearsing "Living on a Prayer", but he just took a break to congratulate me on my birthday and remind me that 40's approaching pretty quick.