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 31.4% of all student loan…
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 be more widely affected in…
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, the 42 million US borrowers,…
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 operating budget, mainly from lost…
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 job market or at worst,…
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 they chased economic prosperity, further…
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 the family income is spent…
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 compared with the past thirty…
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 middling academic attainment does not…
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 often devoid of higher order…
