“The Good Ole’ Days” may be a Reality
The next time you hear a 30-something complaining about how much tougher it is now than in earlier generations, well…maybe they’re right.
Deutsche Bank analyst Torsten Slok distributed a research note showing the overall decline in earnings power for 30-year old Americans over the last several decades.
In the note, Slok stated that the “percentage of children earning more than their parents has been falling steadily since 1945.” In 1955, 70% of 30-year-olds were earning more than their parents. Today, just 50% are expected to earn more—and that number is trending down.
Bloomberg recently used data from the Federal Reserve Bank of St. Louis to show that today’s 30-year-olds are “weighed down by student debt and stagnant wages.” Slok’s note corresponds with separate data from research firm Axios that showed more of today’s 30-year-olds are living with their parents, paying higher college tuition, taking on more debt, and buying fewer homes than 30-year-olds four decades ago.
Is there a deeper global economic cause or is it simply poor planning on the part of parents not knowing what or how to pass on the skills and habits that lead to successful financial outcomes for their children?
I’m going with this idea.