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

The same forces that are driving enormous inequality between the top one percent and the rest of us are creating a huge generational wealth gap between baby boomers (my generation) and

millennials

. Millennials are no longer teenagers. They are working hard, raising families and trying to build wealth. But as a generation, they are far behind. They are more in debt, only half as likely to own a home, and more likely to live in poverty than their parents. If we want to address their problems, we must understand them. Number one: stagnant wages. Median salaries grew by an average of 0.3% annually between 2007 and 2017, including the Great Recession, just as

millennials

were starting their careers.

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

have

stagnated, the costs of essentials like housing and education

have

skyrocketed. Millennials own fewer homes, the most common way Americans have accumulated wealth in the past. Education costs have skyrocketed. Adjusted for inflation, the average college education in 2018 cost almost three times what it did in 1978. Three, and as a result of all this, Debt. That expensive college education means the average graduate has a whopping $28,000 in student loan debt. As a generation, millennials are more than $1 trillion in the red.

Additionally, the average young adult has nearly $5,000 in credit card debt, and the number is growing. Fourth, millennials find it harder than previous generations to save for the future. Among Fortune 500 companies, only 81 sponsored a pension plan in 2017, down from 288 twenty years ago. Employers are replacing pensions with, essentially, do-it-yourself savings plans. All of this means that fewer millennials are entering the middle class than previous generations. Most have less than $1,000 in savings. Many young people today will not be able to retire until they are 75, if at all. If we don't start trying to reduce this generational wealth gap (through policies like debt relief, affordable health insurance, paid family leave, affordable housing, and a more equitable tax code for renters), millions of young Americans will struggle to make ends meet. find financial security. for the rest of their lives.

So, let me introduce you to our resident millennial. I looked everywhere for one, and this is Katie. Katie, how are you? Good how are you? Fairly good. What did you think of our video? Well, you know, it's a scary thing, Bob. And if that wasn't bad enough, my generation has to deal with the looming climate crisis. Nothing easy to do. If you watch our videos, you'll know that maybe there is some hope for the future. Exactly, and if you found this video informative, consider subscribing to this channel and check out our other video: The 6 Ways Millennials Are Changing America.

Thanks, Katie. Thanks Bob.