Author Topic: Why Aren't Millennials Spending? They're Poorer Than Previous Generations, Fed Says  (Read 929 times)

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Offline RoosGirl

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https://www.npr.org/2018/11/30/672103209/why-arent-millennials-spending-more-they-re-poorer-than-their-parents-fed-says

Since millennials first started entering the workforce, their spending habits have been blamed for killing off industries ranging from casual restaurant dining to starter houses. However, a new study by the Federal Reserve suggests it might be less about how they are spending their money and more about not having any to spend.

A study published this month by Christopher Kurz, Geng Li and Daniel J. Vine found millennials are less financially well-off than members of earlier generations when they were the same ages, with "lower earnings, fewer assets and less wealth."

Their finances were compared with Generation X, baby boomers, the silent generation and the greatest generation.

The researchers examined spending, income, debt, net worth and demographic factors among the generations to determine "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."

Continued at link.


Offline Frank Cannon

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Their poor because they are all a bunch of slack ass losers.

Offline The Ghost

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When you have an entire generation of yutes that were rewarded for failure with participation trophies and taught that their self-esteem was of utmost importance you produce a shit load of losers.
"The disdain of a small minority should never, absent legitimate grievance, take precedence over the majority."

Offline RoosGirl

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Their poor because they are all a bunch of slack ass losers.

My take from the article is that they're poor because the stupid ones went to college and 1) the increased demand increased college costs 2) amassed more college loan debt than previously "normal".  From there I surmise that the stupid ones got useless degrees at a premium cost and can't get jobs with salaries to cover their stupidity.

Offline Cyber Liberty

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Paging the "Poor, poor Millennial me" crowd. :2popcorn:
Don't call it the "Federal Government," that's an insult to the Founders.  It's a "National Government."
I will NOT comply.
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Offline mountaineer

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My take from the article is that they're poor because the stupid ones went to college and 1) the increased demand increased college costs 2) amassed more college loan debt than previously "normal".  From there I surmise that the stupid ones got useless degrees at a premium cost and can't get jobs with salaries to cover their stupidity.
That, and they spend what money they have on luxuries like Starbucks lattes and the very latest iPhone.
"Because men have lost the objective basis of certainty of knowledge of the thing in which they are working, more and more I fear we are going to find them manipulating science according to their own sociological or political desires rather than standing upon concrete objectivity." Francis A. Schaeffer

Offline goodwithagun

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What are their college loan payments? Don’t finance a degree that won’t make you money. My hair dresser drives a Mercedes. She spent $5K on her training.
I stand with Roosgirl.

Offline Snarknado

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Their poor because they are all a bunch of slack ass losers.

There is no they're there...
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Offline jmyrlefuller

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Quote
1) the increased demand increased college costs 2) amassed more college loan debt than previously "normal". 
3) increased supply of labor in white collar careers without a corresponding rise in job openings (in early millennials' case, a sharp decline, even). STEM fields are particularly hard-hit in that phenomenon; it's downright impossible to find work in one's field without connections. It's almost as bad as performing arts majors at this point.

At least an art major can sell their art. A meteorologist can't sell his forecasts (because the government gives them away for free)—in hindsight, pressing that lifelong dream of mine was the biggest mistake of my life.
The enemy of my enemy is not necessarily my friend. It may just be that I have two enemies.

Offline Dexter

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What are their college loan payments? Don’t finance a degree that won’t make you money. My hair dresser drives a Mercedes. She spent $5K on her training.

Too many people are going to college because parents and teachers are beating it into children that they'll be losers if they don't. If you didn't want an entire generation to feel like they MUST go to college then the grownups shouldn't have told them that.
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Offline RoosGirl

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3) increased supply of labor in white collar careers without a corresponding rise in job openings (in early millennials' case, a sharp decline, even). STEM fields are particularly hard-hit in that phenomenon; it's downright impossible to find work in one's field without connections. It's almost as bad as performing arts majors at this point.

At least an art major can sell their art. A meteorologist can't sell his forecasts (because the government gives them away for free)—in hindsight, pressing that lifelong dream of mine was the biggest mistake of my life.

I find that hard to believe given that the company I work for has been searching for full time PEs and cannot find anyone qualified to fill positions for at least the last year.  Maybe younger people are unrealistic in their expectations of what a job actually is and how and where to find one.

Offline RoosGirl

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Too many people are going to college because parents and teachers are beating it into children that they'll be losers if they don't. If you didn't want an entire generation to feel like they MUST go to college then the grownups shouldn't have told them that.

Millenials are adults now, time to start taking responsibility for their choices.

Offline The Ghost

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Millenials are adults now, time to start taking responsibility for their choices.

Not until they move out of their rents basements.
"The disdain of a small minority should never, absent legitimate grievance, take precedence over the majority."

Offline RoosGirl

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Not until they move out of their rents basements.

Hah, that's one bad choice they can start taking responsibility for.

Offline Frank Cannon

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Not until they move out of their rents basements.


Offline goodwithagun

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Too many people are going to college because parents and teachers are beating it into children that they'll be losers if they don't. If you didn't want an entire generation to feel like they MUST go to college then the grownups shouldn't have told them that.

Agreed. One can get training and certification for oil and gas welding at our local community college. Pass a drug test and show up when scheduled and make $100/hour on the large diameter pipe.
I stand with Roosgirl.

Offline DB

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My take from the article is that they're poor because the stupid ones went to college and 1) the increased demand increased college costs 2) amassed more college loan debt than previously "normal".  From there I surmise that the stupid ones got useless degrees at a premium cost and can't get jobs with salaries to cover their stupidity.

Government guaranteed student loans making access to money easy is what drove college prices through the roof. Colleges like any other business charge what the market will bear. Students could "afford more" so they paid more - with a simple signature on the dotted line.

That is exactly what happened to the real estate market around 2004. Same cause and will have the same result for colleges.

Regarding spending, too many young people think they're smart because they can look up a complex fact on the Internet. What is missing is the ability to apply those facts in a useful way.

They have high monthly expenses just maintaining the latest smart phone and data/streaming services.

And then social media consumes a vast amount of their time that could have been applied to learning skills that will have a return down the road. The more they build their social media persona for the gratification of "friends" the more they get behind skill wise and the harder it is to catch up.
« Last Edit: December 01, 2018, 03:36:10 PM by DB »

Offline mountaineer

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Agreed. One can get training and certification for oil and gas welding at our local community college. Pass a drug test and show up when scheduled and make $100/hour on the large diameter pipe.
There are a few young men at our church who, with technical degrees, make tremendous salaries working for pipeline companies.
"Because men have lost the objective basis of certainty of knowledge of the thing in which they are working, more and more I fear we are going to find them manipulating science according to their own sociological or political desires rather than standing upon concrete objectivity." Francis A. Schaeffer

Offline sneakypete

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Because their moms won't give them bigger allowances?
+++++++++++++++++++++++++++++++
This post has been approved by Mod 3 or you wouldn't be seeing it.

Offline goodwithagun

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Government guaranteed student loans making access to money easy is what drove college prices through the roof. Colleges like any other business charge what the market will bear. Students could "afford more" so they paid more - with a simple signature on the dotted line.

That is exactly what happened to the real estate market around 2004. Same cause and will have the same result for colleges.

Regarding spending, too many young people think they're smart because they can look up a complex fact on the Internet. What is missing is the ability to apply those facts in a useful way.

They have high monthly expenses just maintaining the latest smart phone and data/streaming services.

And then social media consumes a vast amount of their time that could have been applied to learning skills that will have a return down the road. The more they build their social media persona for the gratification of "friends" the more they get behind skill wise and the harder it is to catch up.

Ugh. I can’t stand it when they brag about “followers.” My usual response is Hitler had millions, Jesus had 12.
I stand with Roosgirl.


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