For the first time in US history, the younger generation will not gain more wealth in their lifetime than their parents. As Scott Galloway points out, Millennials are the largest percentage of full time workers in the US, but economic growth has been slower than for their parents at the same age. Furthermore, Millennials hold…
The most recent underemployment figures from the Federal Reserve Bank of New York, indicating that 43% of 22-27 year old college graduates who are working in jobs that do not require their university degrees, show a nearly 2% increase from February 2020, pre-COVID economic disruption. Yet, as college graduates are usually the last cohort to…
Since March 2020, nearly 37.4 million people, or 90% of all student loan borrowers, stopped making payments under the loan forbearance provisions of the CARES Act. Additionally, all student loan interest has been suspended for the past eight months. However, since the current $900 billion stimulus bill does not extend the forbearance of student loans,…
For many higher education institutions, like the University of California (UC), the fiscal losses are growing as the health emergency extends, precipitating the need for a tuition increase. As reported in a December 12 Los Angeles Times article: Systemwide, UC took a $2.7-billion financial hit between March and October — about 6.5% of its $41.6-billion…
Increasing emergency unemployment claims seems to indicate more people have lost their jobs, yet decreasing continuing jobless claims could mean those unemployed are now employed or failed to get a job, thus are or at risk of being permanently unemployed (or those no longer looking for work.) Translation: we either have at best a bifurcated…
In the 2009-2019 decade following The Great Financial Crisis, the top 5% experienced the greatest income increase of all Americans, further widening income disparities between the top and everyone else. Contributing to the wealth gap, during the same 2009-2019 decade, Millennials racked up nearly $893 billion in student loan debt to purchase college degrees as…
The costs of childcare and college have outpaced wage increases in the past 20 years. So, a growing percentage of a family’s budget is spent caring for children, including paying for educational opportunities, like extracurricular activities as well as college tuition, in hopes of propelling kids toward a sustainable economic prosperity. Yet, as more of…
When assessing the health of the labor market, having perspective born of fact versus media hype is essential when defining a plan for weathering the economic storm, especially for those on the cusp of entering the job market for the first time after earning an undergraduate or graduate degree. Or, our current economic situation as…
The American middle class is shrinking in comparison to nations around the world. Yesterday, I proffered the view that those Americans wishing to sustain or aspiring to achieve a middle class standard of living may not be obtaining the academic preparation necessary, especially as indicated by their average performance on international educational assessments. Yet, their…
Like I posited a few days ago, “Why is the American middle class shrinking?” Firstly, it can be argued that personal success, whether economic or humanistic, requires the acquisition of knowledge and the application of such knowledge. However, rote memorization and regurgitation on cue, skills necessary to compete in the modern American academic meritocracy, yet…
The American middle class is shrinking. Why?
We’re officially in a recession, meaning GDP, or the total value of goods produced and services provided in the US during a single year has declined for two consecutive quarters. The world economy is expected to contract by 5.2% this year—the worst recession in 80 years—but the sheer number of countries suffering economic losses means…
As reported in a study by NORC (National Opinion Research Center) at the University of Chicago: Optimism for the future generation has also fallen. In the wake of the outbreak, only 42% believe that when their children are their age their standard of living will be better than their own, whereas 57% said the same…
Many high school and college students, who are normally camp counselors, are unemployed as many in-person and residential summer programs were cancelled. While a financial deficit for many students in the short term, cascading consequences may also affect students’ prosperity in the long term. On May 24, Patrick Thomas of The Wall Street Journal wrote…
As the Class of 2020 commences, into what economic state do they commence? As reported by Courtney Weaver in the Financial Times on May 28, 2020: With US unemployment at its highest level since the second world war and the country still grappling with the economic fallout of coronavirus, university graduates are watching start dates…
