How will the unemployment and economic recession (or recessions as it more looks like) affect the New Silents in the U.S.? Amongst several dismal prognoses, over a quarter of this generation is expected to endure child poverty – and that is a conservative estimate.
Derek Thompson of the Atlantic discusses how America’s decline from prosperity will hurt the three generations Gen Y, Gen X and the Boomers the most. Not surprisingly, Gen Y’ers have lots of time ahead of them to make up for a sluggish start establishing their grown up lives. However, debt ridden (student loan now surpassed health care costs as main source of bankruptcy) and downtrodden they may never get to the break-even point, which will hurt the long term
‘health” of this generation. This problem is deepened by uncertainties around the future of federal pension programs. On the opposite end is the Boomer generation, which saw their retirement savings cut to a sliver right when they were ready to sustain themselves on it. Those fortunate enough to keep their jobs may elect to postpone retirement, but the less fortunate who have lost their jobs may really feel the squeeze as the job prospect for this group is the lowest. Gen X feels the squeeze in both ends. In addition to worrying about their own retirement savings, stagnating wages and fewer promotional opportunities due to lingering Boomers they also feel the financial burden and insecurities of raising children.
Which brings us back to this generation of children. With their parents unable to save for their college – let alone attend to their own student debt – coupled with rising tuition fees, the New Silents could become the least educated generation in a very long time. And least insured.
Depressing, huh? But oh so important to be aware of before the upcoming election.
Source: The Atlantic, Brookings Institute, U.S. Census Bureau
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