I'd like to say that this article doesn't really describe me and a lot of people here at DP. However, it is something to think about. I have zero debt, positive savings, and I'm within 3 credits of getting my degree. Young Americans can make it, but they have to think outside the box and work smarter, and don't rely on corporations and governments which don't care about them: By Mark Trumbull, Staff writer of The Christian Science Monitor Mon Feb 27, 3:00 AM ET In the race to get ahead economically, America's young workers are falling behind. A new survey shows that median incomes fell for householders under 45, even as they rose for older ones, between 2001 and 2004. Income fell 8 percent, adjusted for inflation, for those under 35 and 9 percent for those aged 35 to 44. The numbers add new weight to longstanding concerns about whether younger generations of Americans will achieve living standards that are better - or at least equal to - those of their parents. "It's a scary question," says Carrie Brown, who runs the Blue Frog Bakery in Boston. She says that for now, at least, she's not keeping pace. And if she and her husband have children, she says she's not sure if her children will enjoy the same lifestyle she did while growing up. Her concern is shared by many Americans who follow the baby-boom generation. One often-voiced worry is about generational fairness in tax burdens, given the prospect of a soaring federal tab in coming decades for Medicare and Social Security as the number of elderly Americans rises. But today, even long before any such fiscal shock arrives, younger workers are already feeling squeezed by other trends. An increasingly competitive global economy, the rising cost of higher education and healthcare, and changing patterns of family life are among the factors that have combined to make the career environment tougher, economists say. "There's no guarantee" that US living standards will continue to rise, says Laurence Kotlikoff, a Boston University specialist in generational economics. For now, the prospect of a generation underperforming their parents may be more of a fear than a reality. By many measures, America continues to grow more prosperous with each passing decade. A long-term trend of falling interest rates since the 1980s, for example, means that even after the recent runup in home prices, houses are generally more affordable today than they were 20 years ago. And homes today contain gadgets - from a child's video-game system to an adult's pocket e-mail device - that didn't exist a generation ago. At the same time, however, evidence of economic challenges also abounds. The signs include: • Rising debt levels. Over the past decade, the volume of federal student loans tripled, reaching $85 billion in new loans last year, according to a new book by Anya Kamenetz, "Generation Debt." Nearly a quarter of college students are using credit cards to pay some of their tuition costs, she writes. • The median income for men under age 44 was significantly lower in 1997 than in 1970, after adjusting for inflation, according to a long-term analysis by the Census Bureau in the late 1990s. For those over 45, incomes barely held their own during that period. • The entry of women into the workforce in those decades has helped push median family incomes up over time. But even when men and women are included together, younger workers (age 25-34) are earning well below what they did in 1970. And at all ages, evidence suggests that families are putting in more hours of work to make their household incomes rise. • Even with extra time at work, median family income has barely budged since 1995 for householders below 45, up about 5 percent after inflation through 2004. Those aged 45 to 54 did better, with family incomes rising 23 percent during that period, according to the numbers released last week from the Federal Reserve Board. And since the end of 2001, at the outset of the current economic expansion, younger workers again have underperformed, with incomes generally falling while their older counterparts have seen incomes rise. That all helps explain the subtitle of Ms. Kamenetz's book: "Why now is a terrible time to be young." The book is partly a manifesto on generational politics, as she eyes the cost of baby boomers' retirement for her generation. It's unfair, some economists say, to blame the baby boom generation, since the larger issue is that healthcare costs keep rising and people keep living longer in general. Rising healthcare costs are hitting younger workers in another way, too. As benefit costs rise, employers often have less left to boost wages. Another factor behind the weak incomes for younger generations may be shifts in household composition. The past few decades have seen a rise of single-parent and nonfamily households, which typically have lower incomes than married-couple households. Perhaps most significant, though, is a labor market that has become tougher on workers, especially those with lower skills. Global competition has compressed wage gains. Thus, despite a boom in worker productivity, "what the typical family or typical worker has to show for it has been remarkably little," says Dean Baker, an economist at the Center for Economic and Policy Research in Washington. In his view, the biggest issue is the rising inequality of incomes during the past quarter century. At the Blue Frog Bakery, Ms. Brown sees that trend among her own peers. "People are either doing phenomenally well or living paycheck to paycheck," she says, as the smell of fresh croissants wafts through the air. Still, many economists say progress is possible. "In the long run I'm optimistic," says Michael Shields, an economist who specializes in demographics at Central Michigan University in Mount Pleasant. What worries him most, he says, is the long work hours for his children who are just out of college. "When are they going to be able to take a break?" he asks. "I don't see it."
America have always had a pretty good growth and I'm sure that the growth is more than 200% the latest 50 years. Just wonder what happened with that..
Yes, but I don't think that is due to less opportunities. Todays generation, of which I am part, have in many cases have had everything given to them. Many don't want to work, and many don't want to get trained to work.
No surprises there. We're a country in decline. And we're getting just what we deserve. We've sucked the world dry for decades now and it's starting to bite back. It was going to happen eventually. And a lot of Americans don't want to take responsibility for their lifestyles while they completely ignore the rest of the world. I don't see a bright future for the USA what with the horrific funding cuts for education and social programs and the rising expectations of every new generation. The elite have arrogantly cut themselves off from the problems of the lower classes. Not to mention the rising tide of Christian fundamentalism. My parents had a house, a car, two kids, and yearly vacations all on one income. And all in their mid-20s. My wife and I both work, we have no kids, but a house remains financially out of the question. Most families I know with kids stretch themselves from check to check. I don't know how they manage. Comparing living standards to the 1960s, they've plummetted.
...ah yes, the Heritage Foundation. Why does there always seem to be a huge discrepancy between statistics and the stories of the people I talk to and my own experience? Maybe I'm in the wrong social class? Likely, many of the homes they mention as "poor" but having "luxury items" are deeply in debt. So whether or not they have 2 cars, jacuzzis, cable tv, elephants, or whatever, on paper they're constantly in the red. A family I know with a fairly luxurious lifestyle has everything that the article mentions, but they constantly live under the weight of a 6-figure debt, bloated credit cards, loans on their mortgages, loans on their 401(k)s, etc. If both parents lost their jobs they'd be in DEEP trouble. Of course it's their own fault, but on paper they're "poor" because their net worth remains deeply in the red.
I might give a few dollars to some american charity organisation when I get my next check. Living on the streets is kool but not relaxing.
I've said the same thing many times. The standard of living in the US is going down big time. I heard on the tv tonight that India is the worlds second fastest rising economy after China. The funny thing is, American jobs are being outsourced to both these countries. People in India are now living in gated communities. It makes me angry but at the same time it doesn't really effect me. I know who my enemies are, and how they want to financially cripple me. Today I counted six payday loan commercials on tv in the span of about an hour and a half. That is ridiculous. The same stupid loan commercial over and over again. Every time I pick up a phone some stupid bank wants to give me a credit card. But NO ONE wants to talk about buying gold and silver. I wonder why that is? The answer is, the US is heading into a bad recession. And I for one plan on not only surviving it, but prospering. I'm going to protect myself. Islamic terrorists don't scare me as much as what is being done to the US economy with outsourcing, a weak dollar, and enormous amounts of national debt.
HAHAHAHHA, Just like Rush was saying the other day. So how is the economy? Aweful, just terrible! Oh? How is your financial outlook? Great! I just got a promotion at work and my wife just got a great job at a great company. You see, I am doing fine, but I am really worried about my freinds and neighbors....... Amaizing. Ring the bell, Maja-Rushie nails it again. LOL. Since the unemployement is near non-existant, now the media has to sya all those new jobs are shitty ones HAHAHAHHAHAAHAHAHAHAHAHAHHA OHHOHOHOHOHOHO AHHAHHAHAHAHHA Lemmings. .
We are in deep sh*t and the government is bancrupt (and doesn't give a damn about it). It's been all downhill perhaps for the past 100 years. It's pretty clear that in X years, there is going to be no SS as we know it, no Medicare, and no jobs for most people. I don't know what people are thinking spending their paychecks for vacations and expensive cars. The future isn't going to be bright
Yeah, a bunch of hard core idiot christians, running around saying everything is jolly and Bush really isnt a F up. Wake up please.
So I guess that this report uses 1990 census data means that Bush had a an effect on the economy 10 years before he came into office?
Notice how the people denying this aren't even in the younger age group? They have no idea... like the school teacher that never sees the 2 girls passing notes.
It's all about complacency... I'm 23 years old and I see how lazy all of my peers are, especially those in the 18-20 group. A lot have no real aspirations, and even if they did, they are too lethargic to accomplish anything more than a degree... Apparently people think it's the piece of paper that makes you the money... which is true... but it's the idiot holding the piece of paper that gets you the job that gets you the extra money... Personally, it just comes down to basic willingness to work... and younger generations just don't have it like generations of the past.
I'm willing to work. I'm willing to work very hard. But I'm not going to work hard and care about a company that underpays and undervalues me. I'm not going to work hard and care if all I can do is barely get by. I work for myself now and I'm making more than most 30 year old professionals. I couldn't get a job paying me the same as I make for myself because I don't have the bachelors degree or 10 years experience.
I don't get what your complaint is, then, yo-yo. You are bemoaning the state of the younger generation not being able to eek out a living, then you say you make more than people 10 years older? That makes sense
Well you obviously weren't the smartest cookie in the jar were you? I'll make it really easy for you to understand - millions of people play the lottery right? And usually only 1 (sometimes 2-3) wins it. Not everyone can win the lottery now can they? Not everyone can work for themselves and make a decent living. Not everyone can work on the internet. Obviously then my situation doesn't apply to everyone.