Sources of a No Growth Economy

Politicians don’t want the truth, they only their job security and the under the table compensations from the mega corporations that really control our country.

CRAIN'S COMMENTS

ben_franklinYounger people are putting off marriage, children and buying  homes because they lack financial security — unstable jobs and too  much student loan debt.

That’s one of the interpretations of a new report from the Census Bureau on Millenials. (1)

In looking at generational change, the report compares 18 to 34-year-olds in 2016 versus 1975.  In looking at just the older portion of this group, 25 to 34-year-olds, there are striking differences:

  • 1975: 45% lived on their own, were working, had married and had a child.
  • 2016: 24% live on their own, are working, have married and have a child.

From the point of view of the economy, the difference is huge. Buying a home drives spending on furniture and appliances, as well as painters and a range of other services. Having children drives demand for larger cars and clothing. Doing neither reduces spending in all of these categories.

The…

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2 thoughts on “Sources of a No Growth Economy

  1. Thanks for bringing this to our attention, Lyncrain. It’s something that everyone knows, but seem paralyzed to do anything about. We just keep re-electing the same bunch of self-seeking people to congress. A political science prof once told me, “Politicians have a single goal once they are elected and that is to be re-elected.” That still holds true. Serving the people is a joke. I really feel for the young folks today. It’s unbelievable.

    I paid $45.00 in rent when I moved to Georgia for my first teaching job, in 1970. Gasoline was around .75 a gallon. And I remember thinking how hight that was! I drove a ’66 convertible corvette. It was a great time. I remember driving up from Atlanta back to Tennessee via I-75 and listening to Brooks Benton sing “Rainy Night in Georgia.” It was great.

    By 1972 I had my masters and a job in Mississippi teaching at a small historically black university. I bought a trailer and lived like a king! It was great. This blog is so correct. Now young people simply move back in with their parents, in the same neighborhood where they grew up…it’s depressing.

    Liked by 1 person

  2. Thanks for your comment. Lyn thought I should respond, since I wrote this.

    The Census analysts limit their comments to the demographic data they collect. They don’t explore the emotions or mindsets of the people involved. However, at the extreme, we’ve seen in Japan where postponement of families has led to a labor shortage that is forcing them to import workers (and forcing companies to move out of the country).

    Analysts have talked about recurrence of inflation under Trump. That may or may not happen. They’re also expecting economic growth that I think won’t happen. You can’t have a robust consumer economy when people don’t have money to spend, and we’re already seeing a sign of that with a decline in new car sales and more retail store closings. The problem with retailers isn’t just the Internet — it’s Congress.

    Liked by 1 person

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