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I bet you roofed houses uphill in three feet of snow both ways too. How is any of that nonsense relevant to this discussion?
Boomers had the exceptional luck of being born into an economically powerful United States at a time when global competitors had been knocked on their butts after dealing with almost complete destruction during WWII. Boomers were able to get jobs that paid living wages with only high school educations. Boomers were able to buy real estate when it was cheap and in some cases fund retirements and college funds for their kids with nothing more than the subsequent price appreciation. Many boomers will receive a lifetime of guaranteed money from pensions that they decided no longer needed to exist for future generations. Boomers throw a fit and can't imagine living with one less penny of Social Security or Medicare for themselves while coming up with plans to completely eliminate those same programs for future generations.
As a collective, the Boomers are the most selfish generation ever to exist in the United States. They took advantage of good economic times to enrich themselves personally and now that their time in the sun is waning, they are doing everything in their power to make sure the ladder to the top is pulled up before any younger generations even have a chance to start climbing.
We have forgotten the juggernaut that almost destroyed the world, and that was World War 2. The USA was almost alone in that our infrastructure, factories, housing and citizens were still standing when it ended. We had no competition and the world needed to be rebuilt. So, we rolled up our sleeves, got to work and did it. Yep. Rebuilt the world. Then. The rest of the world got on its feet and we weren't kings of the hill anymore. We had competition in the form of materials, transportation and wages. By the 1970s, there were alternatives to all-things-American. Cheaper alternatives.
Our standards didn't change, however. We still expect to live comfortable, middle-class lives. It's not possible when a small percentage of society owns most of the wealth. We've learned this in our history books; Russia 1917, France 1789, Cuba 1960.... Britain was faced with revolution in those times too but adjusted their economy without violence. They made laws that TOOK the wealth away from the few to be distributed among the many. It doesn't mean people can't still be wealthy and have all the extras. I don't believe in communism. But do they really need five houses, three yachts, fiftty cars and the multiples of extreme wealth? Nah.
There is no argument against what the OP wrote, all i see is a bunch of un-related replies that are "dancing around the issue" and not disproving the OP's factual observations regarding the economy boomers grew up in vs the 2017 economy experienced by millennials.
For example the $30k-$50k house a boomer bought vs the highly inflated $300k-$500k prices for the SAME house(s) that millennials have to deal with in 2017. Or the issue of purchasing power, as boomers had better wages "overall" when you factor in cost of living and inflation. It's simple math really, and you can't argue with math.
I personally know a few elderly boomers from my neighborhood, and even they confirm what is discussed in this thread. For example one nice 86 year old man from down the street tells me he purchased his house for a measly $16k back in the day, and this is a LARGE house with 2 floors and a basement, 2 car garage, big backyard, the works. I believe his house is currently worth a little under $360k..... that's the kind of wealth gap I'm talking about, and that the OP correctly points out.
#1 As the country grows in population and as we allow more and more immigrants in prime real estate will rise in value with demand.
#2 Have you ever heard of inflation?
So the guy in your possibly true example bought a house probably over half a century ago...and the house increased in value. Wow. Let's be bitter over it.
So let's say he bought the house for $16,000 as you say in 1956 when he was 25. $16,000 in 1956 adjusted for inflation is $144,000 in today's money.
So you are whining that a guy bought a house for $144,000 and over the course of 61 years it increased in value to nearly $360,000. How much did he spend on annual taxes, maintenance of the property, updates, insurance costs, interest on the loan, and repairs??? If we could find that out, adjust for inflation along the way and I bet he spent way over the estimated value of $360,000 the house is worth today over the course of 61 years.
So from $16K to $360K over 61 years - that is an inflation adjusted annual growth rate of 1.51%. 1.51%, that is what we are whining about. That would be much lower and possibly even negative after factoring in annual taxes, property insurance, maintenance, repairs, updates, etc... "Goo goo, ga ga...his house kept up with inflation. Me not have opportunities and go suck my thumb."
#3 The Baby boomers buying homes in their in twenties and thirties were not buying McMansions that had a master suite, a jet spa tub, granite kitchen countertops, in ground sprinklers, soaring ceilings, open floor plans, massive windows, etc....
"My generation demands homes that are nearly twice the size and quality of past generations, and often in key high end locations....and I am shocked and miffed that I can't pay 1950s era prices for it. What are inflation and other costs associated to long-term home ownership - I don't have a clue?!"
Last edited by michiganmoon; 06-01-2017 at 05:06 AM..
#1 As the country grows in population and as we allow more and more immigrants in prime real estate will rise in value with demand.
#2 Have you ever heard of inflation?
So the guy in your possibly true example bought a house probably over half a century ago...and the house increased in value. Wow. Let's be bitter over it.
So let's say he bought the house for $16,000 as you say in 1956 when he was 25. $16,000 in 1956 adjusted for inflation is $144,000 in today's money.
So you are whining that a guy bought a house for $144,000 and over the course of 61 years it increased in value to nearly $360,000. How much did he spend on annual taxes, maintenance of the property, updates, insurance costs, interest on the loan, and repairs??? If we could find that out, adjust for inflation along the way and I bet he spent way over the estimated value of $360,000 the house is worth today over the course of 61 years.
So from $16K to $360K over 61 years - that is an inflation adjusted annual growth rate of 1.51%. 1.51%, that is what we are whining about. That would be much lower and possibly even negative after factoring in annual taxes, property insurance, maintenance, repairs, updates, etc... "Goo goo, ga ga...his house kept up with inflation. Me not have opportunities and go suck my thumb."
#3 The Baby boomers buying homes in their in twenties and thirties were not buying McMansions that had a master suite, a jet spa tub, granite kitchen countertops, in ground sprinklers, soaring ceilings, open floor plans, massive windows, etc....
"My generation demands homes that are nearly twice the size and quality of past generations, and often in key high end locations....and I am shocked and miffed that I can't pay 1950s era prices for it. What are inflation and other costs associated to long-term home ownership - I don't have a clue?!"
When I graduated college and started my career, interest rates were 18% so I didn't buy, then as a latter Boomer job opportunities were scarce so I started my own business and that makes it hard to get a loan, so I didn't buy my first house until I was 35. I have seen many of the young people that work for me buy expensive homes, have a nice boat, SUV and a BMW all because of cheap interest rates.
I'm not complaining, we've done well but it wasn't easy, it took long hours and making good decisions, but in my opinion, young people today have it far easier overall than we did and I'm glad. You just won't get sympathy from me when you expect a great modern house in a premium location without great sacrifice, especially if you're whining poor poor me.
The housing market is back? What are you prescribing yourself doc? Back for who?! The top 1 percenters?
No. For the top 80 percenters, maybe? I hate to be the one to break this to you, but if your housing market is not back, then you are the anomaly, not me. I invest in real estate, and I know the NYC metro market very well. Here, lower income housing is doing even better than upper income housing. But this is not restricted to my area, as you can see in this article...
There is no argument against what the OP wrote, all i see is a bunch of un-related replies that are "dancing around the issue" and not disproving the OP's factual observations regarding the economy boomers grew up in vs the 2017 economy experienced by millennials.
For example the $30k-$50k house a boomer bought vs the highly inflated $300k-$500k prices for the SAME house(s) that millennials have to deal with in 2017. Or the issue of purchasing power, as boomers had better wages "overall" when you factor in cost of living and inflation. It's simple math really, and you can't argue with math.
I personally know a few elderly boomers from my neighborhood, and even they confirm what is discussed in this thread. For example one nice 86 year old man from down the street tells me he purchased his house for a measly $16k back in the day, and this is a LARGE house with 2 floors and a basement, 2 car garage, big backyard, the works. I believe his house is currently worth a little under $360k..... that's the kind of wealth gap I'm talking about, and that the OP correctly points out.
Who is not a Baby Boomer. He's a "Silent Generation" member. Boomers are 71 and younger, down to 53.
I see the meme that wealth is finite in this thread over and over again. The education system has failed every single one of you who believe that and you will most likely be poor and struggle your entire lives.
We are entering a new feudal system where Millennials are the serfs and Boomers are the lords.
The oldest boomers turn 71 this year. The youngest Boomers will not turn 65 until 2029.
And yet, there's no shortage of reports that nearly half of the population nearing retirement ( baby boomers) have no savings which negates your post.
The oldest boomers turn 71 this year. The youngest Boomers will not turn 65 until 2029.
How many millions of baby boomers does it take to offset the effects of Bill Gates or Trump? The former has pledged most of his wealth to his foundation giving. Trump's wealth will likely pass onto his children as his father's did unto him.
What follows the wealthiest generation is the greatest inheritance generation, a mix of Gen X and Millennials.
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