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Fed Says Millennials Are Just Like Their Parents. Only Poorer (bloomberg.com)
Millennials, long presumed to have less interest in the nonstop consumption of goods that underpins the American economy, might not be that different after all, a new study from the Federal Reserve says. From a report: Their spending habits are a lot like the generations that came before them, they just have less money at this point in their lives, the Fed study found. The group born between 1981 and 1997 has fallen behind because many of them came of age during the financial crisis. "We find little evidence that millennial households have tastes and preference for consumption that are lower than those of earlier generations, once the effects of age, income, and a wide range of demographic characteristics are taken into account," wrote authors Christopher Kurz, Geng Li and Daniel J. Vine.
Their findings [PDF] are grounded in an analysis of spending, income, debt, net worth, and demographic factors among different generations. The conclusion that millennials aren't all that different also holds for the researchers' more granular examination of expenditures on cars, food, and housing. "It primarily is the differences in average age and then differences in average income that explain a large and important portion of the consumption wedge between millennials and other cohorts," they conclude. So much for the young folks favoring "experiences" over tangible goods.
Their findings [PDF] are grounded in an analysis of spending, income, debt, net worth, and demographic factors among different generations. The conclusion that millennials aren't all that different also holds for the researchers' more granular examination of expenditures on cars, food, and housing. "It primarily is the differences in average age and then differences in average income that explain a large and important portion of the consumption wedge between millennials and other cohorts," they conclude. So much for the young folks favoring "experiences" over tangible goods.
The reason they have less is simple, we have more.
And we like it that way.
--The Top
They have fallen behind government decided to balance the budget on their backs.
School loans have destroyed the future for a generation and everyone knows it.
When did being a millennial get equated to materialism per se? I thought the trope had more do with growing up as latch-key kids, and being taught hard to feel special, entitled, and enabled by over-compensating or guilt-ridden parents, teachers, and the participation trophy mindset.
Look back up at my post, now look back down, you're on the Internet. Now look back up. I'm a signature.
Millenials aren't actually lazy, they're getting paid stagnant rates and the money supply has increased. Inflation happens and spending power has gone down as a result. The same or greater productivity is expected and "kids these days" aren't the ones seeing the benefit of it.
This isn't even news. Gone are the days when a part time summer job is enough for that year's college tuition. A part time job might barely cover rent any more. And you can forget about having a savings account without at least one full time job and a part time job on the side.
Employers are offering fewer and fewer long term incentives, which results in lower employee loyalty in return.
It's not a mystery, it's not a secret. It's the economy, stupid.
Inheritance is the sincerest form of nepotism.
I think you might have a point there - I'm not sure where all the disparagement towards millenials is coming from. I'm in my 50s, and I work with plenty of interns and new grads in an engineering setting. My experience has been that most of them actually make an effort and bust their ass to get the job done, and are much more aware of needing to plan for the future than my generation was. Yeah, culturally there are differences and sometimes generational gaps in experiences, but I can't see any real reason to dogpile on them just for that.
Please stand clear of the doors, por favor mantenganse alejado de las puertas
2008 great recession
crushing student debt
'gig' economy and decades of union busting
Future insolvency of social security
High rent and housing costs
Medical costs primary cause of bankruptcy
I wonder why millennials and gen-x have less money to spend, and those who do have some aren't spending as much.
Perhaps more are concerned about survival, than frivolously wasting money on consumer products that are engineered to be disposable and non serviceable. Perhaps seeing our parents struggle with credit card debt also had an effect.
Money does not represent wealth. Money represents how much influence you have over other people.
We can always create more consumer goods, so that is not a zero sum game. But there is a finite amount of influence over others available (the maximum amount being total control of everyone).
So, influence over others IS a zero-sum game. The more I have, the less you have, and vice versa.
The less money the lower classes have, the more influence the top has over them. It's that simple.