New Generation Gap: Millennials Face Harder Times Than Their Baby Boomer Parents

New Generation Gap: Millennials Face Harder Times Than Their Baby Boomer Parents

Craig Huey Culture Wars, Economics, Education 1 Comment

Millennials have been called narcissistic, spoiled, and entitled.

But they have more education.

More technology and innovations to work with, too!

But despite this, they are angry, impoverished, and desperate.

Median household income for Millennials has plummeted 20% to $40,581 compared to their parents’ generation.

And it gets worse:

  • Their net worth has decreased in terms of real income, down 56% compared to their parents’ generation.
  • Their homeownership rate has diminished considerably, from 46% to 43%.
  • They have much higher student loan debt.

Higher education has only improved economic gains slightly for Millennials.

Millennials facing a tougher economic future (Credit: Conneticsusa.com)

This downward spiral hurts Millennials of all ethnic backgrounds much harder:

  • White Millennials have seen a 21% decline in median income to $47,888.
  • Black Millennials have fallen 1.4% to $27,892.
  • Hispanic Millennials have endured a 29% loss to $30,436.

What are we witnessing in full?

A pattern of diminished opportunity.

The Baby Boomer generation had a 79% chance of making more money than their parents’ generation.

For those born in 1980, that figure plummeted to 50%.

All of this is happening, even though Millennials with a graduate degree now stands at 35.6% compared to 23.2% for graduates in 1990.

Take a specific case of this new Generation Gap.

Andrea is 28.

  • She has an undergraduate degree, but has bounced from job to the next, and now works at a pizzeria.
  • She earns $18,000 a year.
  • She rents an apartment with her boyfriend.
  • They have no children, since they can’t afford to raise children.
  • She struggles with $33,000 worth of student loan debt.

Contrast that with her mother.

  • She owned her own home at 28.
  • She was already married with children.
  • Her first job was at bank—without a college degree.
  • She was making more: the modern-day equivalent of $19,500 a year.

The answers is to the Millennial Generation Gap:

  1. Economic Opportunity. Turn the economy around by cutting regulations and taxes … and repealing Obamacare.
  2. School choice. The public school system is failing our kids. Only school choice can force the reforms necessary for a better education for all students.
  3. Reinstate job training and trade schools. Many need to provide occupational training … not just college preparatory courses.
  4. We need to stop the current government loan system, which is driving up the cost of college with fewer chances that graduates can repay the loans.
  5. Get rid of the nonsense majors and useless courses which students are currently taking.

What do you think? How can this decline be reversed? Email me at [email protected].

Comments 1

  1. Yes, all the easy money of student loans has driven up the cost of college. This type of debt fueled funding is what creates bubbles. Similar to the housing bubble where easy money fueled the first housing bubble this has happened to the college system. One main difference, student loans are recourse loans unlike home loans in California which are non-recourse loans.

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