Millennials Love Life, But They’re Broke and Living at Home

If you follow the money rather than the blather, it’s clear that the American system is a bipartisan fusion of economic models broken down along generational lines: unaffordable Greek-style socialism for the old, virulently purified capitalism for the young. Both political parties have agreed to this arrangement: The Boomers and older will be taken care of. Everybody younger will be on their own. The German philosopher Hermann Lotze wrote in the 1870s: “One of the most remarkable characteristics of human nature is, alongside so much selfishness in specific instances, the freedom from envy which the present displays toward the future.” It is exactly that envy toward the future that is new in our own time.

These policy decisions eventually have wide-reaching consequences. But I wrote that in the heart of a recession, when it was possible to argue that the problem with the growing gap between poor youth and rich old was simply timing: The young entered the marketplace at the worst possible moment and thus were hapless victims of the cycles of the economy—it sucked, but nobody was to blame. Unfortunately, new research from St. Louis Fed’s Center for Household Financial Stability and the Pew Research Center extinguishes that last glimmer of counter-argument.

From the Pew Center report

In terms of sheer numbers, there are more young adults today than there were when the recession hit – the 18- to 34-year-old population has grown by nearly 3 million since 2007. But the number heading their own households has not increased. In the first third of 2015 about 42.2 million 18- to 34-year-olds lived independently of their families. In 2007, before the recession began, about 42.7 million adults in that age group lived independently.

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