I think my college-age sons are going to get a big surprise one day. When they start fending for themselves, they will have to deal with the fact that their life style as children is quite different than their own. This has certainly happened in the past.
12. Don’t trust US Government estimates of the deficit; instead, look at the change in net liabilities, the way a corporation might do it. That would balloon the paltry $250 billion deficit to $1.3 trillion. I have been writing about this since 1992. The US government will not make good on all the promises it has made in money with today’s purchasing power. The tipping point is not here yet for when this becomes obvious, but I believe it will become clear within the next ten years. Pity the next three presidents.
13. Partly as a result of this, and greater labor competition from abroad, we are finally seeing some evidence that the current generation of young adults is not doing as well as their parents did. This may be a case of increasing income inequality, so that the average can increase while the median decreases. From my angle in society, this is happening. A few motivated people are prospering, and many are muddling along. Where my opinion differs here is that people are generally getting what they deserve; in a more competitive world, people have to compete harder than their parents did, in order to do better. In general, people are not working harder, and so their results are falling behind those of their parents on an inflation adjusted basis.
The newly-wed husband says “You don’t cook like my mom.” His wife replies, “You don’t make money like my dad.” Both are learnable skills, but the expectations are much higher than our kids realize.
Making less than dad did
Report reveals that American men in their 30s earn less than their fathers did, as family income growth decelerates.