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No one is asking for handouts. Just a little understanding that things are not, as you have noted, at all comparable to how they were when today's seniors were 18-34.
Sure they are.
Millennials think that factories were fantastic, awesome places to work.....where every employee had two Mercedes Benz's in their driveway and a few vacation homes.
The only people who went to college prior to the boom years were A) the wealthy or B) people with an absolute passion for the subject that they wanted to study.
Going through the posts here one word seems to stick out - "want". Where does all the thinking that previous generations had it so much easier come from? Never before has there been so much opportunity for the new generations. Look around because the Chinese and many others aren't sitting on their hands blaming previous generations for their woes, they come here and work for their wants. Millennials are getting passed by.
I'm trying to figure out what my millennial kids (31, 29, 24 and 18) have gone wrong. None are living in the basement (we don't have one in any case) and only one, the 18 year old is still at home. He turned 18 the end of November and started as an Electrician's Apprentice the next week.
The oldest two own their own houses while the third is now looking. None of those three are in high paying fields (a County employee, a maintenance manager for a marina and a teacher), all have student loan debt, none got any sort of scholarship.
They live in a high COL area.
Yet they all are successful, are working, have cars, don't really want for anything.
It's called being motivated and having a work ethic. More people should try it.
This has already been addressed by Elizabeth Warren in a presentation she did. It was caused by (youre going to love this) the duel earner household. We effectively doubled the workforce without doubling the consumer base (because households didn't double). This negatively affected wages over time and also drove up housing prices because families had more income and therefore the ability to bid higher on housing. Wages are now lower than they should be and many other factors have adversely affected those. Your best bet these days if you want to get ahead is...dun dun dun....marry the right person. If you are a lawyer and marry a doctor, youll still have that ideal Leave it to Beaver middle class lifestyle. If you are like the bulk of Americans youre screwed. The full effects of this haven't even been felt yet. Wait until us Millenials are in our 50's and have nothing saved up for retirement, youll see demand for government assistance programs shoot to a level beyond what the government can provide. That's when the S will hit the F.
So far every generation has figured life out, along come the millennials and suddenly life is a crisis. The problem is the handouts are drying up. No one gave your parents a living wage.
"I care not what puppet is placed on the throne of England to rule the Empire,... The man that controls Britain's money supply controls the British Empire. And I control the money supply"
Baron Nathan Mayer Rothschild, of the Rothschild international banking cartel
"From reading the posts, perhaps, the first thing to do, in order to come up with a solution, is identify exactly what "income inequity" is.
In 1960, the average income for semi-professional and non-professional jobs was $7060 a year. In 2010, the average income for those same jobs was $45,406. (source of information is athttp://msn.careerbuilder.com/Article...=JS_2146_home1) And, from another source,. the 2010 figure is about 25% too high. Unfortunately, I do not have the link to the other source.
According to another source, http://msn.careerbuilder.com/Article...=JS_2146_home1 executive income has gone up six times in just the last twenty years. Another words, an exec that is making $360,000 today, was only making $60,000 twenty years ago.
It says that executive pay went up an average of 30% each year for the last twenty years while middle-class America has only gotten an average of 12% each year for the last fifty years. And, we're not including bonuses or "Golden Parachutes".
One more area to look at, and this is from my own experience. In 1965 and 1966, I was making $8,000 a year. I was also paying 17 cents a gallon for gasoline. Just today, the current price of gasoline at the corner gas station at the corner is $3.599. To maintain the ratio between income and the cost of gasoline, today's average income should be about $170,000 a year.
In 1973, I was making $14,000 a year, and paying $51 every six months for car insurance. (And, supporting a wife and two kids, while buying a house for $10,000) The last premium I paid on car insurance came out to $147 a month. Back in 1973, the monthly cost was just $8.50. To maintain the ratio of income to car insurance premiums, today's average income should be about$240,000 a year. Want to check with IRS and see just how many "Average Americans" are actually making that much? And, the story is the same no matter what area of expense you look at, groceries, utilities, housing, etc.
That is what is "INCOME INEQUITY". What to do about it is the "$64,000 question". Solutions are sure to be as varied as the people that offer them, but now, you should be able to come up with a better informed opinion.
Now, with regard to the quote, by all means, give your kids every advantage you can. Stress education. Any kind of court record will hurt their chances for a successful career. But, keep in mind...
Let's say that 99% of the next generation gets a master's degree. (No, I don't think that's realistic) It's also not realistic to think that every one of them will get jobs where they will use that degree. There will be a number of them serving at Pizza Hut. A good education and a clean record does not give them a guarantee, but it does improve their chances at a comfortable life." (end quote)
Congratulations the_windwalker, you've earned a spot on my anecdotes collection that's meant to show in a very concrete way the wage stagflation or really deflation experienced for the bottom 80-90 percent of workers the last 30-40 years. I submit only the top 1- 20% percent of wage earners has kept up with cost inflation. That's 2 in 10 workers, certainly NOT middle class, and I think 20% is pushing it. More like the top 10%.
Keep in mind when you read these anecdotes and watch Dr. Warren's lecture think RATIOS. That's exactly my point. For example: "In 1973, I was making $14,000 a year, and paying $51 every six months for car insurance. (And, supporting a wife and two kids, while buying a house for $10,000). How many people now make 40% more IN ONE YEAR than the value of their HOME!!!!: cool::thi nk: GuyNTexas' anecdote illustrates this point very well also.
just because SALARIES haven't kept up with INFLATION doesn't mean we should still CLASSIFY based on 1955/1965 numbers.......average salary in 1966..6900...median house price 14k....about 50% right...use those numbers compared to the median house....the median salary SHOULD be 130k...not 50k
sorry but this is not 1955 , when 250k was rich...please get with the times...its 2010"(end quote)
"The "inequity" comes in where the expenses have out-paced the income for the average American. While EVERYTHING ELSE has gone up, income for the "middle-class" has stagnated over the last fifty years. That is the problem with the economy today. The "middle-class", the MAJORITY of Americans do not have enough money to keep the economy flowing. Inequity = DIS-PROPORTIONATE".
Show me just one exec whose decisions are actually worth a million dollars a day. Even just a thousand dollars a day. Think about it. As great as he was, even Steve Jobs is now replaced. And, as great as he was for the company, he was not that great for America. Look where your Apple product is made. American jobs?
Ever hear of "The Law of Diminishing Returns"? Keep raising your prices, and eventually, you'll price yourself out of business. That is what Corporate America has done. They have priced the economy out of business.
Take a look at the cost of a kit to put a motor on a bicycle. A 50 CC kit has gone up nearly $100 because of the demand. They're replacing cars with motorized bicycles and scooters. And, the auto industry isn't doing as well as they were ten years ago.
If a cashier is being paid exactly what they are worth, then we're paying far more for everything than it's worth. Gasoline isn't worth $3.599 a gallon. Why are we paying that much? Car insurance is not worth what we're paying. Why are we paying it?"(end quote)
Without further ado here's the rest of the collection. In my opinion no one who is honest, can think critically and do math can deny what's contained herein:
Pay close attention to the years in the following posts of people who lived in the mid 70's-early 80's:
"Sad. I made $9 an hour during the Summer break in the mid 1980s running telephone lines in office buildings. It was a horrible low paying job then. You know what $9 is worth today adjusted for inflation since 1985. $4.42 cents. That same job today would be need to pay $18.50 per hour. If you have no perspective on how things suck..you'll settle for anything. The USA will look like these ghettos in Brazil before people wake up to this right wing propaganda they've been spoon fed for 30 years."(end quote)
"You know what $9 is worth today adjusted for inflation since 1985. $4.42 cents."
"Just because things were better, doesn't mean they were great. I don't deny that there were folks like yourself. Nevertheless, more opportunity (on average) did exist back then.
During college I worked part time at a warehouse. One of my co workers was a Guyanese who came into the US illegally in '77 or '78 (he later received amnesty under Reagan). He used to tell me how his first job, as an illegal, paid $10.50/hour. In 2006, after he was laid off from a warehouse making 33/hour, we were working for $12/hr. $10.50 in '78 or 12 in 2006. Inflation much?"(end quote)
"Also the wages aren't there and if you compare that with inflation it just doesn't work.
In 1980, I had an entry level job as a sound engineer with a local independent TV station earning $5.00 per hour.One paycheck paid my rent and utilities and auto insurance and the other 3 paycheckseach month were disposable income.
An entry level job today pays $8.50 to $10 per hour and even at $10 per hour it takes 2 paychecks to cover the cost of rent, utilities and auto insurance (and don't forget in 1980 $10 -- or two hours of work -- paid for 2 tickets to the cinema show, a tank full of gasoline and something to eat after the movie -- the cost of two movie tickets now is over $20)."
(end quote)
"The guy is a typical, narrow minded moron who probably has a picture of Reagan on his wall and NOBAMA stickers on his car. He really thinks in this world, with gas being $3.50 per gallon and food twice what it was 5 years ago that $8.50 per hour is "competitive" How friggin stupid can anyone be? I was making more than that in 1981 in a part time job. I started out at $14.00 per hour in 1984 when I bought my first house for $42,000!
He has NO RESPECT for his employees. None.(end quote)
"No. I'm really disagreeing with .. not missing your point. And those numbers don't tell a very accurate story, and the proof is demonstrated by the drop in net worth of middle income earners as their debt has increased significantly, while earnings have declined relative to inflation.
By most measurable data points, the middle income class has been dying a very slow, incremental death for 4 decades because the costs on high ticket items have increased more rapidly than the either the inflation rate or rates of increases in income. To further compound the problem, average income levels have failed to keep pace with the inflation rate itself. Much of this goes unnoticed because of it's slow incremental nature (like growing old). But if you are old enough, and still maintain your mental faculties, you can't be bull $hted into believing what you are trying to say here.
As just one example, in 1977, I bought a brand new Pontiac Trans Am for $5200. And since it was my first car purchase, I suspect I was clubbed like a baby seal (paid full MSRP), as I simply asked how much, and said OK (later I learned the error of this way to purchase automobiles )
Now today, that car is no longer available, but a comparable car "Chevy Camero SS" is. And a similarly configured model is around $35,000 MSRP. Which is almost double the adjusted for inflation number of $18,700 that Camero should cost relative to the $5200 Trans Am of 1977.
My income back then was 14,000 or just shy of 3 times what the car cost ... if you apply that same formula to the $35,000 Camero today, I'd have to earn roughly $100,000 per year to maintain the same standard (drive the same car) as my $14,000 income provided then. I was not wealthy then .. I was a 20 year oldworking in a warehouse driving a forklift. And I don't think there are many 6 figure forklift drivers around today ...I would say, the 40-50K range would be the upper limit ... or roughly the same as my $14,000 would be, adjusted for inflation.
This is one example, and almost any big item ... car, house, etc. works out to be the same. Some other items like Healthcare have dramatically exceeded those rates exponentially compared to 1977 where mine was absolutely free and first rate, including dental.
Now, add to this the higher taxes, social security withholding, and medicare ... all of which have exceeded the inflation rate (and don't let anyone BS you into believing it hasn't), means that the net spending power of your income has declined dramatically over the past 30+ years. (See video below she documents ALL this IN DETAIL)
Now around about that same time frame, my step father worked for one of the US Government agencies earning roughly in the 50-60K range, and at the time, that was very good money, but not even close to RICH & Wealthy .... but adjusted for inflation, that comes out to around $200+K now. The house he purchased then at $50,000 appraised for $480,000 in 2004-5 even though the adjusted for inflation value would have only dictated a $155,000 figure ... 3 times the inflation rate!! By the time he retired in the late 90's, his income may have doubled, yet his house increased by 6-8 fold. What does that tell you?
Now if you are following me here ... this is where it gets real hairy ... if you take a Quarter ... 25 cents ... from say 1964 (the last 90% silver Quarter) that 25 cents equates to $1.76 in 2010 value. But guess what? Today's melt value of that sliver quarter is about $3.70 which is again more than double the published inflation rate ....
So what does that all mean? It means very simply, that the value of your money is worth about half of what it's claimed to be worth, even after being adjusted for inflation .... and all it takes is to actually look at the historical costs of items like cars, and houses and health care costs from the late 60's to today, and also the median incomes. You see that the purchasing power has indeed declined. And this is a result of the devaluation of the currency (a hidden tax).
So when it comes to buying power, there has been a continuous decline that doubles the the inflation rates admitted .. which is why the middle class really doesn't exist for all practical purposes today.
There are the ultra wealthy, and the rest. The $250kers are just at the higher end of that rest of us, and they are the last of the upper middle class, and the next in line to fall ... apparently, much to delight of many who think that they are members of the Wealthy Club, and must fall for the sake of everyone.
I suppose this proves that indeed, misery loves company."(end quote)
"Which is ... I might add .... $17/hr is roughly $6 per hour in 1980 dollars adjusted for inflation, or $12,000 per year. Though that doesn't quite tell the whole story, since there are many costs that have increased way more than 3 fold, which makes me question the inflation calculations today.
For example, a brand new 1980 Chevrolet Camaro Z28 cost about $6,500 in 1980, while a 2013 Camaro SS Coupe runs close to $40,000 ... which is double the calculated inflation rate .... so a person buying a new camaro back then who was making $10/hr in 1980, would have to make $60/hr today, to be in the same financial situation.
That's just one example of many .... my regular bills back then were ... $12 phone, $25 electricity, no cable, no internet, no cell phone .... and rent was $250. My total living expenses (living alone) was less than $300 .. and food costs were about $20 per week, give or take. Gas was about .65 - .75 cents per gal as were cigarettes about .75 .... and you could get a beer in a bar for .50
I never had to juggle bills .... I lived quite well, drove a brand new car, went out on weekends regularly, never had to deny myself anything, and still managed to stash a couple hundred bucks away in a savings account every month ... on $10/hr
Don't try to live that way today ..... people who have no direct experience of what things were like back then, really have no idea how badly they are "taking it" today. No idea!"
All of these numbers have been adjusted for inflation. When my parents were 25 and 22 they bought a house in Saint Paul MN for $158k. My dad made $48k and my mom made $32k. They had two children, paid off their house, and eventually bought a vacation home in a resort town with cash. They still live there today. The house is worth $520k as of the last tax bill from the county.
My dad now makes $72k and my mom is retired. Tell me in what world can a family with children and a household income of $72k buy a half million dollar house, let alone a vacation home? My parents never had the highest-paying jobs but something happened between their generation and my generation. They expected me to live in their neighborhood after college - something which I probably can never afford to do. They are sitting pretty while their son, which no debt other than mortgage, wonders what happened in the past 40 years.
Seniors are rich because housing values in their neighborhoods shot up. People my age buy them and are mortgaged to the eyeballs. Why?
That home in the resort town probably appreciated considerably over the years and was bought when it was much cheaper.
If young people can no longer afford to raise families, and will grow old childless, what does it imply for the future? Freeways without traffic jams? Not enough people to fill all the job vacancies? Being able to go to a popular restaurant and get a table immediately? It sounds like an alarming and lonely future.
Many liberals feel the world is overpopulated and that the population must decline in order for the world to be sustainable. This is just a way to manage the decline.
I'm trying to figure out what my millennial kids (31, 29, 24 and 18) have gone wrong. None are living in the basement (we don't have one in any case) and only one, the 18 year old is still at home. He turned 18 the end of November and started as an Electrician's Apprentice the next week.
The oldest two own their own houses while the third is now looking. None of those three are in high paying fields (a County employee, a maintenance manager for a marina and a teacher), all have student loan debt, none got any sort of scholarship.
They live in a high COL area.
Yet they all are successful, are working, have cars, don't really want for anything.
I'm glad to hear that.
The thing is though that you have to look at the entire Economy. Not just your kids. I have my plan in place and am content, but I still understand the repurcussions I could suffer if the Economy isn't fixed. Including one of my businesses.
It's not about your kids, or just my future. It's about the overall health of the econonomy and how its going to keep our country and communities afloat.
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: cool:
$10.50 in '78 or 12 in 2006. Inflation much?"(end quote)
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