thank god for cash!
I hope you are kidding here, because when the US can't service its debt, its dollars are not going to be worth much.
The staggering millennial wealth deficit, in one chart
- Thread starter Morrison71
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I hope you are kidding here, because when the US can't service its debt, its dollars are not going to be worth much.
You are obviously blinded by your hatred of the Boomers. They absolutely did not splurge on the dream home in their mid 20s. So yes, ignorant and silly to holds true to the poster I responded to.
Really? Because it was a bunch of young up and comers that got together and thought up the whole mortgage scam. Do a little more reading. And of course, those in charge were more than happy to role with the scam.
A little more research.
I will be long gone and ground temperature when this happens mark. You probably will be too.
Of course the debt has increased to record levels under every president. Collected tax revenues are also at a record level, so why the deficit? Oh yeah, that spending thingy...
It ain’t a spending thingy as much as a debt thingy. Plus a President who is financially ignorant and spends money like a drunken sailor. You can’t give the military carte Blanche and artificially restrict Fed base interest rates and preach free market economics...and then engage in tariffs and trade wars.
America had a chance to change its act when Bill Clinton was POTUS....the “financially responsible” GOP/Cons of Congress refused accept the discipline debt reduction required. See where we are today compared to the day Clinton left office.
Not sure how old you are, but I expect our fiscal crisis to hit in the next 20 years.
This is definitely a huge factor that I can't believe no one else brought up. As a country we f***** ourselves when we normalized relations with China and opened up the floodgates for businesses to move manufacturing there. Once that genie was let out of the bottle, it would become almost impossible to put it back in.
Throw all the Mexican manufacturing jobs into the equation and we've built the hell of a middle-class in two foreign countries at the expense of destroying ours that we built in the fifties and sixties.
It's the only reason Trump is president today, and for anyone that thought that he was going to be the one to put the genie back in the bottle.....~eyeroll.gif~
I really love how some of you still try to pin the Debt on one party.
Federal spending as % of GDP:
1994 - 20.4% - Gingrinch Congress moves in and reduces rate of government growth below growth rate of the economy
2000 - 17.7% - Clinton leaves office
2009 - 24.4% - Tea Party protests in response to government spending largest share of GDP since WW2
2019 - 21.3% - Estimate
I'm in favor of reducing Federal government spending back to the rate we enjoyed the day Clinton left office.
to think we gotta tax people and corps to pay for this is stinkin' thinkin'. of course to think we need to saddle future generations with debt is crazy also. we need tariffs on foreign countries and apply that to the debt . I get the feeling that's what trump wants but he'd never convince congress. ron paul used to say we were headed for a write off, a default, and a start over. I dunno how that works.
The problem with this is that you are ignoring the context of the state of the economy. In 2009 you have both the fact that the GDP was shrinking and the nation is increasing spending to try to help the economy recover that caused a rather large bump.
The opposite was true when Clinton left office. Economy was great had an exceptionally high GDP.
hawkeyetraveler
HR All-American
No matter how many times it has been explained you somehow still don’t understand how tariffs work.
The single biggest lever for this debt situation is reducing federal spending. Our military expenditures (among others) are absurd.
If we didn’t have to bailout the Congressional mistakes of 2008, we might be there...Congresses lack of oversight and refusal to regulate cost America tons of money. America’s effort to make money cost us trillions...trillions we never had.
Kids need to pretty much breathe to get through high school in this era and many can’t do that. It’s not at all shocking.
That's part of it, and the numbers are compelling, but I would be interested to see the 2-3 generations before. There are a few things in play here that give the Boomers a natural advantage before we get into whether they're horrible people (I'm Gen X):
- Boomer parents and grandparents went through two World Wars
- Boomer parents either went through the Great Depression or were children of the Depression
- Boomers grew up at a time when Europe and Japan were economically out-of-play, rebuilding from the war as we turned our war machine into manufacturing dominance
Personally, I think the answer is to focus on how we got where are and look at how we can put some guardrails up to not continue to perpetuate the difference. Boomers and Millenials are very different. What happens if the bulk of the Boomer wealth gets passed to Millenials? Well, besides it being about the most Gen X thing ever?
In some fairness, the world has changed a ton. When the Boomers were going to college, you could go for just a few hundred dollars per semester and get a degree. You could go out and buy a $50k house and easily get approved with one breadwinner.
It's not just that they were smart, it's that it was a time where it was easy to make the smart play. I'm not going to contest the lack of fiscal discipline today, but remember that the Boomers learned from parents and/or grandparents who went through the Great Depression.
I am not a boomer let’s start with that.
The issue with Millennials is multifaceted.
1) The near ubiquitous idea that college is a requirement to succeed and the entitlement idea that one should be able to go to the school of their choice regardless of cost. Wanna go to a party school out of state for tens of thousands a year? Why not? Heck no one should be forced into going to a trade school or a CC or a state school. ASU for anyone that wants it!
2) They're a massive consumer generation. Tech, cars, and houses they can’t afford. The idea that they can’t have the same house as they moved out of years ago is foreign. God forbid you save and advance as standard of living and wage permit.
3) they actually don’t want to work hard and feel like they shouldnt have to either.
4) they have grown up attending universities that have been overrun by leftists. This has indoctrinated them with the idea that envy is ok and that equality of outcome is an overriding principal. Not equality of opportunity as it should be.
5) instead of taking summer during college and just after to work and save, many of them feel entitled to a ‘year abroad’. WTH? get a freaking job or resign yourself to the idea that you’ll have debt when you are done with school and that’ll need to be paid back. Not voted away. Too many are holding out for that pie in the sky notion and are borrowing and ‘experiencing’ themselves into a massive hole. Ever wonder why so many millennials like Bernie? It isn’t bc of his youthful appearance and ‘cool’ factor.
6) universities have caught on to all this and have learned that cost controls for tuition aren’t needed. That people will borrow what they need from Uncle Sam. Uncle Sam’s willingness to do so has driven costs to an unsustainable level.
Bottom line you millennials, stop whining, stop bitching, stop wishing, stop dreaming, stop gaming, stop buying 5 dollar cups of coffee, sitting on your laptop listening to Spotify on your new phone thru your AirPods, stop buying all the bullshit propaganda from your professors, start thinking the yourselves and start giving a damn about working hard for what you want in life and worry much less about how everyone else got theirs and get yours too. On your own.
The issue with Millennials is multifaceted.
1) The near ubiquitous idea that college is a requirement to succeed and the entitlement idea that one should be able to go to the school of their choice regardless of cost. Wanna go to a party school out of state for tens of thousands a year? Why not? Heck no one should be forced into going to a trade school or a CC or a state school. ASU for anyone that wants it!
2) They're a massive consumer generation. Tech, cars, and houses they can’t afford. The idea that they can’t have the same house as they moved out of years ago is foreign. God forbid you save and advance as standard of living and wage permit.
3) they actually don’t want to work hard and feel like they shouldnt have to either.
4) they have grown up attending universities that have been overrun by leftists. This has indoctrinated them with the idea that envy is ok and that equality of outcome is an overriding principal. Not equality of opportunity as it should be.
5) instead of taking summer during college and just after to work and save, many of them feel entitled to a ‘year abroad’. WTH? get a freaking job or resign yourself to the idea that you’ll have debt when you are done with school and that’ll need to be paid back. Not voted away. Too many are holding out for that pie in the sky notion and are borrowing and ‘experiencing’ themselves into a massive hole. Ever wonder why so many millennials like Bernie? It isn’t bc of his youthful appearance and ‘cool’ factor.
6) universities have caught on to all this and have learned that cost controls for tuition aren’t needed. That people will borrow what they need from Uncle Sam. Uncle Sam’s willingness to do so has driven costs to an unsustainable level.
Bottom line you millennials, stop whining, stop bitching, stop wishing, stop dreaming, stop gaming, stop buying 5 dollar cups of coffee, sitting on your laptop listening to Spotify on your new phone thru your AirPods, stop buying all the bullshit propaganda from your professors, start thinking the yourselves and start giving a damn about working hard for what you want in life and worry much less about how everyone else got theirs and get yours too. On your own.
In 1974 when I moved to Polk County, you could buy a new 3 bdrm., 2 bath ranch in WDM for about $24k. There were a lot of “dual income” couples then...women started going to work in big numbers sometime in the mid-1960s.
I remember well that my mother went “back to work” (school teaching) as soon as my youngest brother started attending school all day. Having 4 boys and 4impending college educations staring you in the face, made dual incomes a necessity in a lot of cases. Family dynamics and family economics have evolved from there over the last 50+ years.
Extrapolate that chart out 50 years from now and it will be similar. What is the mystery?
hawkeyetraveler
HR All-American
You forgot the fact that all of this was made possible by essentially taking a GIANT government loan that will have to be paid back by your grandchildren. Sure people worked hard and saved individually. But you had the freedom to save that individual money because you spent at a government level like there was literally no tomorrow.
That says Gen Xers are slackers. It's not saying much that Millenials ( a bunch of 20 year olds) don't have much, that kind of makes sense.
hawkeyetraveler
HR All-American
You conveniently forgot a couple things you need to factor in - but don’t let that stop you:
1) There are 51% more baby boomers than gen Xers
2) Change in life expectancy. The greatest generation transferred wealth earlier on average as they simply did not live as long. So boomers inherit wealth earlier in life than gen x. This is certainly magnified by the fact that those that control wealth live longer. Since wealth compounds nicely, this effect grows over time.
3) This is SHARE of wealth not aggregate wealth.
I am sure there are other factors that could be argued as well. So, while it may be that gen x generates less wealth per capita, it would be far less of a gap than shown in this chart.
It's a joke. A fellow commuter told me this is the new way millennials are insulting boomers. Think of it as 'Ok, gramps' as showing their lack of importance.
Agreed. Wages were also much much lower back then. But yes, the mentality back then was different than today. Along with people despising each other because of their political ideological thinking, today there's a sense of entitlement that's sickening, to me anyway, and a lot of people seem to want that dream home or expensive vehicle and they want it now regardless of their income, instead of being practical and saving up for the day when they're financially able to afford that style of living. EDIT: Geez, did that sentence run on and on?
As I said in my first post, each generation has their good and bad, but the "I want it now" thinking is not the thinking I grew up with.
I still live in the house I bought in my 20's, 30 years later. should be paid for by now but we did the re-fi thing a few times
I'm a boomer. My son is a millenial, and has been in the workforce for almost a year.
I left home at 17 with $400 in my pocket, and an old beater car. I currently have no debt. My son will inherit most of my wealth.
My son has no debt, and at 23 has considerably higher net worth than I did when I was 35. He's already benefited because I paid for his car, college, and living expenses while he was in college.
I'm happy to pass on my wealth to my family. I wouldn't be happy passing on my wealth to the US government so it can be redistributed or spent.
I left home at 17 with $400 in my pocket, and an old beater car. I currently have no debt. My son will inherit most of my wealth.
My son has no debt, and at 23 has considerably higher net worth than I did when I was 35. He's already benefited because I paid for his car, college, and living expenses while he was in college.
I'm happy to pass on my wealth to my family. I wouldn't be happy passing on my wealth to the US government so it can be redistributed or spent.
between now and then you can bet the feds and any other government will try and try to make a law or two where they take it. because they are money grubbers
This is why I am firmly against wealth taxes, etc., etc. People say I need to sacrifice because of my good fortune. Well, I contributed to my own good fortune, and sacrificed a lot already. I shouldn't be forced to sacrifice again because other people made poor choices.
Careful with this line of thinking as some might take it as we have to force ourselves into a depression and two word wars so they can profit.
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