Four Reasons Why Millennials Don't Have Any Money | Robert Reich
Summary
TLDRThe video script highlights the significant generational wealth gap between baby boomers and millennials, who face stagnant wages, soaring costs of housing and education, and substantial debt. Millennials are struggling with student loans, credit card debt, and the decline of pension plans, making it difficult to enter the middle class and save for retirement. The script calls for policy changes to address these issues and ensure financial security for young Americans.
Takeaways
- 📈 Millennials face a significant generational wealth gap compared to baby boomers.
- 🏠 Millennials are less likely to own homes and more likely to live in poverty.
- 💼 Stagnant wages have grown at an average of 0.3% per year between 2007 and 2017.
- 📚 Rising costs of housing and education have outpaced wage growth.
- 🎓 The average college education in 2018 cost nearly three times more than in 1978, adjusted for inflation.
- 💸 Millennials carry substantial student loan debt, averaging $28,000 per graduate.
- 💳 Credit card debt is also a growing issue among young adults.
- 💼 Fewer millennials are entering the middle class due to economic challenges.
- 💰 Most millennials have less than $1,000 in savings, impacting their financial security.
- 🌱 Policies such as debt relief, accessible health insurance, and affordable housing are suggested to address the wealth gap.
Q & A
What is the main issue discussed in the video script?
-The main issue discussed in the video script is the vast generational wealth gap between baby boomers and millennials, caused by factors such as stagnant wages, increased costs of essentials like housing and education, and significant debt burdens.
How has the median wage growth for millennials compared to previous generations?
-Median wages for millennials grew by an average of 0.3% per year between 2007 and 2017, which is significantly lower than the growth rate of three times that during the mid-1980s to mid-1990s.
What has been the impact of stagnant wages on millennials' ability to own homes?
-Stagnant wages have led to millennials owning fewer homes, which is a common way Americans have built wealth in the past. This has contributed to the wealth gap between millennials and previous generations.
How has the cost of education affected millennials' financial situation?
-The cost of education has soared, with the average college education in 2018 costing nearly three times what it did in 1978 when adjusted for inflation, leading to millennials carrying significant student loan debt.
What is the average student loan debt for a college graduate mentioned in the script?
-The average graduate carries a student loan debt of $28,000.
How has the shift from employer-sponsored pensions to do-it-yourself savings plans affected millennials?
-The shift has made it harder for millennials to save for the future, as evidenced by the decrease in the number of Fortune 500 companies sponsoring pension plans from 288 twenty years ago to only 81 in 2017.
What is the average credit card debt carried by young adults according to the script?
-The average young adult carries nearly $5,000 in credit card debt, and this number is growing.
What is the implication of the financial challenges faced by millennials on their retirement?
-Many young people may not be able to retire until 75, if at all, due to the financial challenges they face, such as stagnant wages, high debt, and lack of savings.
What policy solutions are suggested in the script to address the generational wealth gap?
-The script suggests policies like debt relief, accessible health insurance, paid family leave, affordable housing, and a more equitable tax code for renters to reduce the generational wealth gap.
How does the video script address the additional challenge of the climate crisis for millennials?
-The script acknowledges the climate crisis as an additional challenge for millennials, implying that addressing the wealth gap is part of a broader set of issues they must face.
What is the role of Katie in the video script?
-Katie is introduced as the 'resident millennial' in the video script, presumably to provide a personal perspective on the issues discussed and to engage with the content presented.
Outlines
💼 Millennial Wealth Gap and Economic Challenges
The paragraph discusses the economic disparities between baby boomers and millennials, highlighting that millennials face significant challenges in building wealth. Despite being hardworking and starting families, millennials are burdened with higher debt, lower home ownership rates, and increased likelihood of living in poverty compared to their parents. Key issues include stagnant wages that grew at only 0.3% per year between 2007 and 2017, a sharp contrast to the 3 times faster growth in the mid-1980s to mid-1990s. The costs of housing and education have skyrocketed, with the average college education in 2018 costing nearly three times more than in 1978. This has led to millennials carrying substantial student loan debt, averaging $28,000 per graduate. The paragraph also points out the decline in pension plans sponsored by Fortune 500 companies, shifting the retirement savings responsibility to individuals. The result is a generation struggling to save and enter the middle class, with most millennials having less than $1,000 in savings and facing the prospect of delayed retirement. The speaker calls for policy changes such as debt relief, accessible health insurance, paid family leave, affordable housing, and a more equitable tax code for renters to address these issues.
Mindmap
Keywords
💡Inequality
💡Generational Wealth Gap
💡Stagnant Wages
💡Cost of Essentials
💡Debt
💡Pension Plans
💡Middle Class
💡Retirement
💡Climate Crisis
💡Policy Solutions
💡Financial Security
Highlights
Millennials face a significant generational wealth gap compared to baby boomers.
Millennials are deeper in debt, less likely to own homes, and more likely to live in poverty than their parents.
Median wages grew at a mere 0.3% per year between 2007 and 2017 for millennials.
Wages grew three times faster between the mid-1980s and mid-1990s compared to the period millennials started their careers.
Costs for essentials like housing and education have increased dramatically.
Millennials own fewer homes, which is a traditional way Americans have built wealth.
The average college education cost in 2018 was nearly three times more than in 1978, adjusted for inflation.
The average graduate carries $28,000 in student loan debt.
Millennials as a generation are over one trillion dollars in debt.
The average young adult carries nearly $5,000 in credit card debt, with the number growing.
Millennials find it harder to save for the future due to fewer pension plans sponsored by Fortune 500 companies.
Employers are replacing pensions with do-it-yourself savings plans.
Fewer millennials are entering the middle class compared to previous generations.
Most millennials have less than $1,000 in savings.
Many young people may not be able to retire until 75 or at all.
Policies like debt relief, accessible health insurance, paid family leave, affordable housing, and a more equitable tax code are needed to reduce the generational wealth gap.
Millennials also have to deal with the oncoming climate crisis.
The video suggests that there is hope for the future if viewers watch more of their content.
The channel encourages viewers to subscribe for more informative videos.
Transcripts
The same forces that are driving massive inequality between the top one percent and the rest of
us are creating a vast generational wealth gap between baby boomers — my generation
— and millennials.
Millennials aren’t teenagers anymore. They’re working hard, starting families and trying
to build wealth. But as a generation, they’re way behind. They’re deeper in debt, only
half as likely to own a home, and more likely to live in poverty than their parents.
If we want to address their problems, we need to understand those problems.
Number one: Stagnant wages. Median wages grew by an average of 0.3% per year between 2007
and 2017, including the Great Recession -- just as millennials were beginning their careers.
Before that, between the mid-1980s and mid-1990s, wages grew at three times that rate.
Second, as wages have stagnated, the costs of essentials like housing and education have
been going through the roof. Millennials own fewer homes, the most common way Americans
have built wealth in the past. Education costs have soared. Adjusted for inflation, the average
college education in 2018 cost nearly three times what it did in 1978.
Three, and as a result of all of this, Debt. That expensive college education means
the average graduate carries a whopping $28,000 in student loan debt. As a generation, millennials
are more than one trillion dollars in the red. In addition, the average young adult
carries nearly $5,000 in credit card debt, and the number is growing.
Fourth, millennials are finding it harder than previous generations to save for the
future. Among Fortune 500 companies, only 81 sponsored a pension plan in 2017, that’s
down from 288 twenty years ago. Employers are replacing pensions with, essentially,
do-it-yourself savings plans.
All of this means that fewer millennials are entering the middle class than previous generations.
Most have less than $1,000 in savings. Many young people today won’t be able to retire until 75, if at all.
If we don’t start trying to reduce this generational wealth gap — through policies
like debt relief, accessible health insurance, paid family leave, affordable housing, and
a more equitable tax code for renters — millions of young Americans will struggle to find financial
security for the rest of their lives.
So, let me introduce you guys to our resident millennial. Looked all over for one -- and this is Katie.
Katie, how are you?
Good, how are you?
Pretty good. What did you think of our video?
Well, you know, it’s scary stuff, Bob. And if that wasn’t bad enough, my generation
has to deal with the oncoming climate crisis.
Nothing easy to do. If you watch our videos, you know, maybe there’s some hope for the future.
Exactly, and if you found this video informative, please consider subscribing to this channel
and check out our other video: The 6 Ways Millennials are Changing America.
Thanks, Katie.
Thanks, Bob.
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