Missing the Point
Slate had an article about Generation Debt yesterday. The author's argument is that although the economy is stacked against Generation Y, "College is more expensive today in real terms. There's been a shift in student aid- more loans and fewer grants. The Baby Boomers, closer to retirement, are sucking up more dollars in benefits. There's more income volatility and job insecurity than there used to be," the author is "annoying" because essentially, young people have no right to complain. They will get married and therefore increase their incomes. There will likely be times of economic boom to follow this bust. And other problems such as losing benefits and job insecurity happen to people of all ages. This is true, but entirely misses the point.
Kamanetz's book argues that we have the above problems that everyone suffers from, but on top of it we have much, much more debt. The situation is worse for our generation. Her point is made.
What the Slate article also misses (and not having read Kamanetz's book yet I don't know if she covers) is that the problems that these generations are experiencing are not going away anytime soon. The Baby Boomers will continue to further tax Social Security and Medicare for another 20-30 years. In order to keep these programs running at all, the country will likely be forced into great economic compromise in other programs that effect all the younger generations. We can't count on Social Security at all after the Baby Boomers bankrupt it. The older generation has benefited from pensions and job security and student loans and other government assistance, then got busy using their economic and population advantages to revoke these same benefits for the generations who follow them.
Our financial futures will be determined not just by the national and global economic situation. They will also be determined by us taking interest in the political process by which our benefits are reduced, and voting for present current responsibility and legislation that ensures there will be something left for the future besides insurmountable debt. Granted, that sounds time consuming and not like too much fun, especially when most of your time is spent trying to make ends meet.
Kamanetz's book argues that we have the above problems that everyone suffers from, but on top of it we have much, much more debt. The situation is worse for our generation. Her point is made.
What the Slate article also misses (and not having read Kamanetz's book yet I don't know if she covers) is that the problems that these generations are experiencing are not going away anytime soon. The Baby Boomers will continue to further tax Social Security and Medicare for another 20-30 years. In order to keep these programs running at all, the country will likely be forced into great economic compromise in other programs that effect all the younger generations. We can't count on Social Security at all after the Baby Boomers bankrupt it. The older generation has benefited from pensions and job security and student loans and other government assistance, then got busy using their economic and population advantages to revoke these same benefits for the generations who follow them.
Our financial futures will be determined not just by the national and global economic situation. They will also be determined by us taking interest in the political process by which our benefits are reduced, and voting for present current responsibility and legislation that ensures there will be something left for the future besides insurmountable debt. Granted, that sounds time consuming and not like too much fun, especially when most of your time is spent trying to make ends meet.
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