The next recession will destroy millennials


Olde Hornet

Well-Known Member

Millennials got bodied in the downturn, have struggled in the recovery, and are now left more vulnerable than other, older age cohorts. As they pitch toward middle age, they are failing to make it to the middle class, and are likely to be the first generation in modern economic history to end up worse off than their parents. The next downturn might make sure of it, stalling their careers and sucking away their wages right as the millennials enter their prime earning years.

It was the last downturn — the once-a-century Great Recession — that set them on this doddering economic course. The millennials graduated into the worst jobs market in 80 years. That did not just mean a few years of high unemployment, or a couple years living in their parents’ basements. It meant a full decade of lost wages. The generation unlucky enough to enter the labor market in a recession suffers “significant” earnings losses that take years and years to rebound, studies show, something that hard data now back up. As of 2014, millennial men were earning no more than generation X men were when they were the same age, and 10 percent less than baby boomers — despite the economy being far bigger and the country far richer. Millennial women were earning less than gen X women.

Kids of the 1980s and 1990s have had a new, huge, financially catastrophic demand on their meager post-recession earnings, too: a trillion dollars of educational debt. About a quarter of gen Xers who went to college took out loans to do so, compared with half of millennials. And millennials ended up taking out double the amount that gen Xers did. No wonder, given that the cost of tuition has gone up more than 100 percent since 2001, even after accounting for inflation.
 
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