Four Reasons Why Millennials Don't Have Any Money | Robert Reich

The same forces that drive mass inequality between the upper one percent and the rest of us are creating a vast generational wealth gap between the Baby Boomers, my generation, and

millennials

. Millennials are no longer teenagers. They are working hard, starting families and trying to generate wealth. But as a generation, they are far behind. They

have

a deeper debt, only half the chances of having a house and more likely to live in poverty than their parents. If we want to address your problems, we need to understand those problems. Number one: stagnant salaries. The average wages grew by an average of 0.3% per year between 2007 and 2017, including the great recession, as well as

millennials

began their careers.

Before that, between the mid -1980s and mid -1990s, salaries grew three times that rate. Secondly, as wages

have

stagnated, the costs of essential elements such as housing and education have been going through the roof. Millennials have less homes, the most common way in which Americans have built wealth in the past. Education costs have skyrocketed. Adjusted by inflation, average university education in 2018 costs almost three times what he did in 1978. Three, and as a result of all this, debt. This expensive university education means that the average graduate has a whopping $ 28,000 in debt of student loans. As a generation, millennials are more than one billion dollars in red.

In addition, the average young adult entails almost $ 5,000 in debt of credit cards, and the number is growing. Fourth, millennials find it more difficult for previous generations to save for the future. Among Fortune 500 companies, only 81 sponsored a pension plan in 2017, that is less than 288 twenty years ago. Employers are replacing pensions with, essentially, DIY savings plans. All this means that less millennials are entering the middle class than previous generations. Most have less than $ 1,000 in savings. Many young people will not be able to retire until 75, if they do. If we do not begin to try to reduce this generational wealth gap, through policies such as debt relief, accessible health insurance, paid family license, affordable housing and a more equitable tax code for tenants, millions of young Americans will have difficulty finding financial security for the rest of their lives.

Then, let me introduce our millennium resident. It looked everywhere, and this is Katie. Katie, how are you? Well, how are you? Quite well. What did you think of our video? Well, you know, it's something scary, Bob. And if that were not bad enough, my generation has to deal with the climate crisis that approaches. Nothing easy to do. If you see our videos, you know, maybe there is some hope for the future. Exactly, and if you found this informative video, consider subscribing to this channel and watch our other video: the 6 ways in which millennials are changing the United States.

Thanks Katie. Thanks Bob.