September 18, 2019

For Millennials, the Recession Never Ended

“For Americans under the age of 40, the 21st century has resembled one long recession.

I realize that may sound like an exaggeration, given that the economy has now been growing for almost a decade. But the truth is that younger Americans have not benefited much.

Look at incomes, for starters. People between the ages of 25 and 34 were earning slightly less in 2017 than people in that same age group had been in 2000.

Why is this happening? The main reason is a lack of economic dynamism. Not as many new companies have been forming since 2000 — for reasons that experts don’t totally understand — and existing companies have been expanding at a slower rate. (The pace of job cuts has also fallen, which is why the unemployment rate has stayed low.) Rather than starting new projects, companies are sitting on big piles of cash or distributing it to their shareholders.

This loss of dynamism hurts millennials and the younger Generation Z, even as baby boomers are often doing O.K. Because the layoff rate has declined since 2000, most older workers have been able to hold on to their jobs. For those who are retired, their income — through a combination of Social Security and 401(k)’s — still outpaces inflation on average.

But many younger workers are struggling to launch themselves into good-paying careers. They then lack the money to buy a first home or begin investing in the stock market. Yes, older workers face their own challenges, like age discrimination. Over all, though, the generational gap in both income and wealth is growing.”

Read more

JJ Editor's Picks

"Congratulations, Mr. President. It took an extraordinary effort, but you finally managed to spark a serious global crisis. I know you don’t like to share credit, but don’t worry. The current mess in the Middle East centered around Iran is all..."

"We’re approaching the anniversary of one of the nastiest political battles it has been my misfortune to witness—the confirmation of Brett Kavanaugh to the Supreme Court despite credible accusations of sexual harassment and assault and his..."

"There are few one-offs in life on Earth—rarely can a single species boast a trait or ability that no other possesses. But human language is one such oddity. Our ability to use subtle combinations of sounds produced by our vocal cords to create..."

"He walked through the coffee shop door and scanned the crowd. A familiar smile bloomed as he recognized me, despite how my appearance had changed over the years. I’m bald and bearded now, and heavier. I wear an extra decade on my face, and I’m..."

"The poverty rate in the United States fell to 11.8 percent in 2018, according to data released last week by the Census Bureau — the lowest it’s been since 2001. But this estimate significantly understates the extent of economic deprivation in..."

"Streaming is the future of TV. But for now a big part of the streaming business revolves around old TV shows. Latest case in point: Netflix is paying a lot of money for the rights to show Seinfeld to its 150 million subscribers around the world..."

"On the eve of the second Israeli election of 2019, there is no shortage of apocalyptic rhetoric about the potential consequences of Prime Minister Benjamin Netanyahu’s re-election. From the New York Times' editorial column to The Forward’s..."

"Is there a backlash toward the technology industry in the culture? I tend to think so, having written about its various twists and turns most weekdays for the past couple years now. But sometimes an obsession with a beat can lead to myopia, and..."