To most people in the United States, the generation they believe has more going for them than any other generation is the current one, the Millennials. Older generations — especially the Baby Boomers — associate Millennials as having everything, but being lazy, under-appreciative, and entitled. However, are Millennials truly the “blessed generation” that was handed everything? The Inquisitr previously reported that the majority of them have massive debt, especially from student loans. Maybe that’s why 42 percent of them prefer socialism because capitalism isn’t working in their favor.
Such behaviors of finances are not founded on long-lasting accountability. However, a report may shine some light on why Millennials do what they do economically, and it has to do with the fact that they aren’t truly making any money at all.
According to an analytic report by economists Tom Allison and Konrad Mugglestone of Young Invincibles, there are many details that contribute to why Millennials aren’t making any money. The primary detail is that the job market in general has seen a major decline in real wages, even after adjustment for inflation. For those aged 25 to 34, the five job sectors most of them work in are healthcare, manufacturing, professional/business, retail/wholesale, and leisure/hospitality. All of them have experienced a major decline in real wages with the only incline being a blip for healthcare.
Before we continue, it must be clear that the graph doesn’t show that Millennials’ pay is getting slashed every year. What it does show is the wage growth is failing to keep up with inflation. This means as those in their twenties age into their thirties, they are actually making less than their older peers before them. This gloomy analysis also extends to the younger Millennials (aged 18 to 24) too.
The Atlantic followed up on the original report in which they related the analytic data to real-life situations of Millennials. Because of falling wages, Millennials are investing whatever income they make to things they can utilize as best they can for the situation they are in. Dave Ramsey once said that if your outgo exceeds your income, your upkeep becomes your downfall. Millennials are understanding this through their aversions of home-buying, auto loans, credit cards, and savings. They have more important expenses to worry about such as food, water, gas, and rent.
It is also explained that healthcare saw a wage incline because it seems to have many exceptions. First, it is mostly government-owned these days, ergo it doesn’t see the same vertiginous chaos of the rest of the economy. Second, technology advancements haven’t cut into healthcare like it has done in other job sectors. Finally, healthcare is a necessity in any society and will always be sought out despite the price, thus making the fact Americans are spending 42 percent more on healthcare valid.
There was a ray of hope this year as 200,000 more jobs were added to the workforce per month. But something must be wrong if U.S. wages are barely growing, which for the Millennials, it is growing 60 percent slower than overall U.S. wages. How is the generation that is privileged and entitled supposed to survive off of that?
What are your opinions on the wage situation with Millennials. For older generations, does this study bring understanding to a Millennial’s economic attitude?
[Featured Image via Bing, Post Images via The Atlantic]