Millennials'

It’s Not Your Fault

Millennials' habits are threatening countless industries — but a new report says it's only because they're poorer than their parents

The financial crisis and college debt — not avocado toast — are changing how Millennials spend their money.

DYI:

 

Student Loans

Millennials are besieged on multiple economic fronts none of their making.  Starting with the most obvious and notorious cost; student loans.  I find it impossible to believe these loans began with the best of intentions.  When you introduce a 3^rd party payer without the self regulating cost inhibitor of bankruptcy these loans will not stay with the student but will go to the College or Universities, driving their costs ever higher.  And wow have cost skyrocketed.  Many higher educational establishments have gone on building booms all in the attempt to scoop up as much student loan money as possible.  Whether a student graduates or not these schools are there to drag in as many new students [or should we say sheep to be sheared] as possible; all to keep the gravy train of money going. 

Higher education costs are easily dropped by applying high school economic principals.  Either do away with student loans or allow the ever present danger to the lender of bankruptcy.  This will stop dead cold the ever increasing dollars forcing the schools [basic economics 101] to drop their prices.  If they don’t that school every year will have less and less students until they have to lay off professors and staff or face bankruptcy.

Unfortunately I don’t see anything changing as Federal politician pushing for automatic garnishment of wages for student loans.  Politicians clearly not working for the people; but to feather the nest of private lenders or government and keeping the money train going for the schools.  This debacle has had its side effects as school enrollment has dropped in direct proportion to the increasing cost.  I’ve run into many young people who are definitely bright enough to handle the academic rigors but have stated conclusively and empathic [four letter flowerily language] NO THANKS.

Real Estate

Whether you rent or buy the cost real estate has been “jacked up” all due to the sub atomic low interest rates engineered by the Federal Reserve.  Housing [RE] and long term bonds are affected in price by the level of interest rates.  When interest rates increase bonds and RE will drop in price and conversely with lowering of rates bonds and RE will rise.  Millennials those with entry level management employment find moving out from Mom and Dad impossible due to the combined effect of student loans and RE prices and those at the hourly level just purchasing a decent car/truck is damn near impossible as well.

Medical Industrial Complex

I won’t get into this deeply as the prior post delves into this in detail.  The medical industry today is sucking up 20% plus of the economy thus starving out the remaining portions of the economy for spending and investment.  Unless employed in some fashion in the medical industry the other sectors spending and investment starved making for dismal pay and benefits.  This is the indirect gruel and arduous reality effecting today’s Millennials.

There are other problems affecting our economy but I’ll leave it there for now.

Till Next Time            

DYI