Millennials Continue Living With Parents, Can’t Afford to Move Out in Obama Economy
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A new poll by the Pew Center finds that in this terrible Obama economy Millennials are staying at home with their parents for much longer than previous generations. Apparently they just can’t afford to move on when they enter adulthood.
“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.”
The St. Louis Fed Paper explains exactly why millennials, despite improving job prospects and a slight increase in real wages, are not moving out of their homes. They are still broke. Young people, for obvious reasons, have always been poorer than older people. But after rooting out idiosyncratic variations and compensating for other variables, the St. Louis researchers came to the following, bleak conclusion:
“Beginning with the 1950 cohort (i.e., families headed by someone born between 1948 and 1952), successive cohorts through 1970 (born between 1968 and 1972) had statistically significantly lower incomes than those of the 1940 cohort. Moreover, the estimated magnitudes are economically significant: between 13 and 25 percent lower than the 1940 cohort. Finally, all five-year cohorts that began in 1975 or later had estimated income shortfalls of 12 to 18 percent.”
Those shortened incomes mean that the wealth gap is only set to increase. Cohorts with lower incomes obviously cannot save as much and therefore cannot accumulate as much capital over the course of their lives. Which means that the problem is accelerating quite outside the minor turbulence of the rise and fall of recession and growth.
The new research shows that the problem of the growing gap between the young and the old is not the economy but policy. The Federal Government spends 2.4 dollars on every citizen over 65 for every dollar spent on a child. That makes a difference. Unfortunately, that difference is only set to grow.
Obama is destroying this country.
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