Wealth Gap Increasing Among Millenials, Possibly Most Unequal Generation in History

[xcvbn]

We're gonna have serious fireworks in this country over income inequality. Give it a few years when more people realize there's something wrong about record company profits and decade's long wage stagnation, all in the midst of exploding health care and education costs. At some point something's gotta give.

 

[Wrath of Foamy]

People in general don't know how to live within their means. It's pretty sad how many people have to buy cars and mcmansions they can't afford because they feel that it's just what they have to do as an American. Same people that spend $30,000 on a wedding. I guess it's great for the economy for a while, until you have to start paying that money back.

Sometimes you have to spend money to get ahead.

I got my car on finance, for £120 a month spread over five years. I don't like credit, but I wouldn't have gotten a better job without it.

Same goes for University fees, and mortgages.

 

[moreorless87]

Not everybody has the aptitude for STEM. It's not just a matter of intelligence, but a specific type of intelligence, plus an interest. I'm much more verbal myself, and chose a college and major based on that. But yes, you need something practical at least, if not STEM.

Honestly though I think the biggest issues are loss of manufacturing to globalisation and a service/retail sector that's becoming incredibly exploitative in terms of low wages and poor unpredictable hours. From a UK perspective part time jobs that demand people are free for overtime at any point(so you can't have two) have absolutely exploded in number since the recession, low unemployment is basic just a case of chopping a decent paying job into two or more jobs that are barely liveable.

Plus of course you can add the cost of housing carrying on skyrocketing as low interest rates are pushing everyone with money to invest in that direction.

 

[Hollywood Jack]

Honestly though I think the biggest issues are loss of manufacturing to globalisation and a service/retail sector that's becoming incredibly exploitative in terms of low wages and poor unpredictable hours. From a UK perspective part time jobs that demand people are free for overtime at any point(so you can't have two) have absolutely exploded in number since the recession, low unemployment is basic just a case of chopping a decent paying job into two or more jobs that are barely liveable.

Plus of course you can add the cost of housing carrying on skyrocketing as low interest rates are pushing everyone with money to invest in that direction.

Right on the money. Loss of manufacturing jobs plus we're turning into a technocracy and oligarchy.

 

[moreorless87]

Right on the money. Loss of manufacturing jobs plus we're turning into a technocracy and oligarchy.

I do think there's been a very well sold fantasy to the middle classes about the reality of working in the retail sector, basically harking back to the days they might have had a summer/collage job for a bit of extra money. The reality that people spend their entire lives in jobs like these seems to have been lost or at the very least pushed to the back of peoples minds.

 

[Fox by the Sea]

there's always some obnoxious cunt coming in threads like these telling everybody how much money he has. self centered prick.

 

[Mr. 4K]

Millennial crew checking in.

Owns rental property.
More than the average in the OP saved in the bank.
401K
750+ credit score

Spoiler

My generation does suck.

 

[moreorless87]

Millennial crew checking in.

Owns rental property.
More than the average in the OP saved in the bank.
401K
750+ credit score

Spoiler

My generation does suck.

Just don't invest in a pool.

 

[Mr. 4K]

Just don't invest in a pool.

Next thing I'm getting my hands on is a quadplex or a triplex.

 

[moreorless87]

Honestly as well the other great myth is that this is a case of low income vs middle income when in reality its the case that loses of income at the low end has gone into the pockets of the rich.

 

[HIMBOB]

Savings and net assets are different.

My sister has zero in savings, but is like 100k ahead on her home loan.

What group is she in?

 

[PG29 red0 Jr]

The gap between rich and poor may be increasing, people are doing better than they ever.

Today a "poor" person has a TV a cell phone etc. etc.

In 1955 a poor person probably would not have a TV, a phone, and probably not a radio either. Just because the gap from rich to poor is increasing does not mean people are not doing much better now than they ever have.

 

[moreorless87]

The gap between rich and poor may be increasing, people are doing better than they ever.

Today a "poor" person has a TV a cell phone etc. etc.

In 1955 a poor person probably would not have a TV, a phone, and probably not a radio either. Just because the gap from rich to poor is increasing does not mean people are not doing much better now than they ever have.

I disagree, that above graph of course isn't adjusted for inflation for growing income doesn't mean growing standard of living of you fall behind it. Certain consumer goods like TV's have become somewhat cheaper but generally this isn't true, the cost of accommodation(the biggest expense for almost everyone) most obviously has risen massively and food hasn't gotten cheap either.

Its perfectly possible for someone to have a smartophone yet be reduced to living in a low rent dive and going hungry or eating crap unhealthy food. Compared to the mid 20th century its now much harder for many to attain that dream of a decent home and a well cared for family.

 

[Uber_Noober]

Where do those sewer dwelling masked rats at these protests fall on that chart?

 

[MikeMcMann]

As an employer with a mostly millennial staff I can tell you we see a massive disparity in that group even in similar age ranges.

Millennials have arguably the fastest path to the Management ranks of any prior work group. Employers know and are being told constantly that Millennials need more coddling and re-enforcement and when you get a good one you must not wait and you must show them a clear and quick path to growth and Management or they will leave to another employer. Unlike prior generations where you were told to keep your head down and shut up for at least the first 5-10 years this group is very vocal about needing to understand and know where their career is going? Are they valued?, etc.

So when you have a good working Millennial you try to keep them and you advance them and they make good money much quicker and they can save lots. But the vast majority of Millennials (again in our experience) have an IDGAF attitude about almost everything. They don't want to think long term. They don't want to commit or work hard. It is just a job and a temporary one at that. They quit and jump job to job because they are not looking to save to buy a house and may not even have a car expense. So they don't need to stick it out and make it work. But they also save nothing. Money is all spent on fancy latte's and Avocado toast.

So yes I can definitely see why there would be a huge a disparity in the savings of Millennials as a group as opposed to groups prior. Groups prior all had more of a agreed to blue print. You started your career and you worked hard with our head down and saved towards a home. You had that pretty clear goal, that many Millennials do not.

 

[boingyman]

Millenials sound poor...

 

[MikeMcMann]

I disagree, that above graph of course isn't adjusted for inflation for growing income doesn't mean growing standard of living of you fall behind it. Certain consumer goods like TV's have become somewhat cheaper but generally this isn't true, the cost of accommodation(the biggest expense for almost everyone) most obviously has risen massively and food hasn't gotten cheap either.

Its perfectly possible for someone to have a smartophone yet be reduced to living in a low rent dive and going hungry or eating crap unhealthy food. Compared to the mid 20th century its now much harder for many to attain that dream of a decent home and a well cared for family.

A lot of that goes to expectations.

Many Millennials seem to not be "Penny Smart" and they have expectations that there level of living the day they move out of their parents place should be equal to what they had with their parents. Starter cars for young people of my generation were 10-15 year old pieces of junk. Young folk today jump into cars the equivalent that their parents would drive because they CAN finance it. Starter homes were similarly cheap for prior generations. I see young millennial couples get married and move into homes equivalent to their parents or nicer. Generations prior drank instant coffee, ate Mac and Cheese and PB&J to spread the budget and save. Today its expensive latte's and avocado toast which are super expensive.

Today's younger people seem to want it all, in terms of life's little extravagances and do not see how spending all of your money each and every day does not help you get ahead in the future.

A young person today spends far more and has far more then generations prior and rarely does without for anything. Prior generations did without on almost everything but the very basics which allowed them to save.

 

[MikeMcMann]

The gap between rich and poor may be increasing, people are doing better than they ever.

Today a "poor" person has a TV a cell phone etc. etc.

In 1955 a poor person probably would not have a TV, a phone, and probably not a radio either. Just because the gap from rich to poor is increasing does not mean people are not doing much better now than they ever have.

Yup.

I would bet the poorer Millennials in many instances spend more on stuff than the better off millennials. But the big difference is WHERE they spend that money. The poorer Millennials are spending it on goods that provide no future value such as designer clothes, Lattes, Avocado Toast and foregoing cars and homes. The smaller group of wealthier millennials are spending on stuff that helps build savings.

I know many of the poorer millennials have Netflix, the newest iPhone and all sorts of other 'Pay' services that would in no way constitute a necessity for a young person trying to save some money and everything they eat has to be vegan or organic which is a massive extra expense.

 

[moreorless87]

A lot of that goes to expectations.

Many Millennials seem to not be "Penny Smart" and they have expectations that there level of living the day they move out of their parents place should be equal to what they had with their parents. Starter cars for young people of my generation were 10-15 year old pieces of junk. Young folk today jump into cars the equivalent that their parents would drive because they CAN finance it. Starter homes were similarly cheap for prior generations. I see young millennial couples get married and move into homes equivalent to their parents or nicer. Generations prior drank instant coffee, ate Mac and Cheese and PB&J to spread the budget and save. Today its expensive latte's and avocado toast which are super expensive.

Today's younger people seem to want it all, in terms of life's little extravagances and do not see how spending all of your money each and every day does not help you get ahead in the future.

A young person today spends far more and has far more then generations prior and rarely does without for anything. Prior generations did without on almost everything but the very basics which allowed them to save.

Some well off youn people obviously spend a good deal but the reality is large numbers of them are simply very hard up with wages having failed to keep inline with rising cost of living expenses.

A big issue really is that Clinton's introduction of easy morgages just plastered over the cracks of falling home ownership rates under Reagan and post recession were seeing the reality of the situation...

 

[ObamaPhoneLady]

I would wager a good part of that is most immigrant cultures don't move out of the family home until they're like 40.

Easy to save $500/month when you don't have to pay rent.