Wintery Knight

…integrating Christian faith and knowledge in the public square

New study: record high 30.3 percent of millenials live with a parent

Those on the left assure us that the secret to creating more jobs is making it easier for more people to go to college. We have to keep taxing job creators and workers, they say, so that we can pay for more people to get a college indoctrination. I mean education! Well, we have been trying that approach for some time – tax the private sector, make it cheaper for people to go to college. And the result is that we now have a record high number of young adults with college degrees, and a record high number of young adults living in poverty and a record high number of young adults living at home.

The article from Campus Reform tells us where we are now.

They write:

An all-time high of 30.3 percent of millennials are living with a parent, according to data released from the U.S. Census Bureau’s study, “Young Adults: Then and Now.”

The study, released Dec., 4, 2014, and tracks the young adult population from the 1980, 1990, and 2000 Censuses and the 2009-2013 American Community Survey, gathering data about salary, education level, transportation habits, and more than 40 other topics.

Millennials are living at home, and more are living in poverty with lower rates of employment than their predecessors.

According to the report, millennials are more likely to live at home than any other generation of young adults. In 1980, 22.9 percent of young adults lived with a parent, while in 1990 the percentage increased to 24.2 percent. In 2000, the percentage decreased to 23.2 percent, but by 2013 it hit a record-level by jumping more than 7 percentage points.

Millennials are living at home, and more are living in poverty with lower rates of employment than their predecessors. According to the study, one in five young adults live in poverty, up from one in seven in 1980. Currently, the study claims 65 percent of millennials are employed compared to the 1980 number of 69 percent.

Yet, 22 percent of young adults have a college degree, compared to only 16 percent in 1980.

The troubling thing about this for me is how much millenials keep voting, again and again, for higher taxes and more regulations. On the one hand, they want to vote against evil corporations. Tax them more! Regulate them, to save the planet! Then, a split-second later, they go and ask these corporations that they’ve been taught to bash for work. There is work for them, all right – in other countries with lower taxes and less regulation.

Anyway, we want to be positive, so again, I’m going to provide people with useful information.

First, study STEM programs:

  1. Petroleum Engineering – Starting Salary: $103,000 / Mid-Career Salary: $160,000
  2. Actuarial Mathematics – Starting Salary: $58,700 / Mid-Career Salary: $120,000
  3. Nuclear Engineering – Starting Salary: $67,600 / Mid-Career Salary: $117,000
  4. Chemical Engineering – Starting Salary: $68,200 / Mid-Career Salary: $115,000
  5. Aerospace Engineering – Starting Salary: $62,800 / Mid-Career Salary: $109,000
  6. Electrical Engineering – Starting Salary: $64,300 / Mid-Career Salary: $106,000
  7. Computer Engineering – Starting Salary: $65,300 / Mid-Career Salary: $106,000
  8. Computer Science – Starting Salary: $59,800 / Mid-Career Salary: $102,000
  9. Physics – Starting Salary: $53,100 / Mid-Career Salary: $101,000
  10. Mechanical Engineering – Starting Salary: $60,900 / Mid-Career Salary: $99,700

And you should also start investing early, and keep investing:

The good news is there are now more millionaires than ever. But when it comes to retirement, is a million dollars enough?

“If they want to be financially independent, retire at 65 and be able to have an income of $40,000 a year in retirement for 30 years, then it’s likely that they’re going to need a million dollars to retire to generate that lifestyle,” said Bruce Allen, an independent wealth advisor.

Living comfortably on $40,000 a year in retirement, which would require a $1 million nest egg by the time you reach the retirement age, will depend on your expenses, investment returns and health-care costs.

[…]Many retirees make it work with less. According to Census data, the median household income for those 65 and older is $34,000, but that’s almost half the $66,000 for ages 55 to 64. In order to preserve that preretirement standard of living, financial experts say you’ll need more than a million dollars.

And the last piece of advice I would be this – if you are a young person, you should be looking into understanding how to save and invest, and you should be reading unbiased financial news. It’s not enough to hope that the government is going to bail you out. In all likelihood, the government will be coming to you in 15 years, looking for you to bail them out of their obligations to pay the pensions and health care costs of retirees. You should not take pride in being ignorant of economics and politics. This is your problem. Wishing and hoping that things will be OK will not make these challenges go away. Just because your friends, your favorite musicians, your favorite authors, your co-workers, etc. are not talking about these issues to you, it does not mean that these challenges don’t apply to you. They do apply to you. And just getting good grades now is NOT a guarantee that you will be OK later. You’re going to be expected to do more with less in a way that your parents never had to do. They are leaving you a worse financial world than they received.

Filed under: News, , , , , , , , , , ,

Should young people vote for Democrats?

Jennifer Kabbany describes what young people got from their vote for Democrats over at the College Fix.

She writes:

Young America’s Foundation released its annual “Youth Misery Index” findings today, and the news is not good for young people – the index has hit an all-time record high.

The foundation calculates the index by adding youth unemployment, student loan debt, and national debt (per capita) figures, and it found “young people are experiencing hardships like never before under the Obama administration, and this generation is especially suffering the consequences of this administration’s leftist policies.”

For 2014, youth unemployment sat at 18.1 percent, student loan debt came in at $30,000, and national debt per capita was the highest ever at $58,437. The foundation tallied that all up for a Youth Misery Index of 106.5. That’s far above the 2013 figure of 98.6, when the foundation added 16.3, which represented youth unemployment, with 29.4 – the average 4-year college loan debt – and 52.9, each person’s national debt burden.

“The government is largely responsible for all three problems, and we’ve found a statistically significant relationship between government expenditures and the Youth Misery Index,” the foundation states. “Each indicator can be tied to government actions.”

While the index has steadily grown over the decades, under Obama the figure has shot up dramatically.

In 2012 it was 95.1, and the year before that 90.6. When Obama first took office in 2009, it was 83.5. When President George Bush left office in 2008 – the index was 69.3. When the figure debuted in 1993, it came in at 53.1.

“Young people will be stuck paying for government debt they had no part in creating, and they’ll have to do it with less discretionary income than ever before because of record high levels of student loan debt,” the foundation stated.

If interest rates go up, it will get even worse. Interest on loans will make it harder for them to buy houses and cars. Their students loans will cost more. And the government will have to dedicate a lot more money to making payments on the national debt – leaving less money for other expenditures. Taxes might have to go up to pay for the payments on the debt. Whether they raised income, sales or property taxes, it’s bad news for young people trying to get on with their lives.

Filed under: News, , , , , ,

New study: raising minimum wage hurts young, minority workers most

This report is from the libertarian Cato Institute.

Except:

A new working paper from the National Bureau of Economic Research finds that significant minimum wage increases can hurt the very people they are intended to help. Authors Jeffrey Clemens and Michael Wither find that significant minimum wage increases can negatively affect employment, average income, and the economic mobility of low-skilled workers. The authors find that significant “minimum wage increases reduced the employment, average income, and income growth of low-skilled workers over short and medium-run time horizons.”  Most troublingly, these low-skilled workers saw “significant declines in economic mobility,” as these workers were 5 percentage points less likely to reach lower middle-class earnings in the medium-term. The authors provide a possible explanation: the minimum wage increases reduced these workers’ “short-run access to opportunities for accumulating experience and developing skills.” Many of the people affected by minimum wage increases are on one of the first rungs of the economic ladder, low on marketable skills and experience. Working in these entry level jobs will eventually allow them to move up the economic ladder. By making it harder for these low-skilled workers to get on the first rung of the ladder, minimum wage increases could actually lower their chances of reaching the middle class.

Most of the debate over a minimum wage increase centers on the effects of an increase on aggregate employment, or the total number of jobs and hours worked that would be lost. A consensus remains elusive, but the Congressional Budget Office recently weighed in, estimating that a three year phase in of a $10.10 federal minimum wage option would reduce total employment by about 500,000 workers by the time it was fully implemented. Taken with the findings of the Clemens and Wither study, not only can minimum wage increases have negative effects for the economy as a whole, they can also harm the economic prospects of  low-skilled workers at the individual level.

With that in mind, I have some bad news for everyone who likes the idea of young people of color finding work.

The Daily Signal explains: (H/T Dad)

At the stroke of midnight today, 19 states increased their minimum wage. Residents of three more and the nation’s capital can expect hikes later on this year.

[…]Federal legislation was met with resistance. though. Republicans argued raising the minimum wage would cause an increase in prices for consumers and low-wage workers likely would face layoffs as companies grappled with the higher costs associated with hiked wages.

Some of those concerns were validated last month by a University of California, San Diego, study. For three years, researchers followed low-income workers residing in states that saw wage hikes and those that did not. The study found that minimum wage hikes had negative impacts on employment, income and income growth.

[…]“Minimum wage supporters have good intentions, but those good intentions cannot repeal the law of unintended consequences,” James Sherk, an expert in labor economics at The Heritage Foundation, told The Daily Signal. He added:

Minimum-wage increases reduce the total earnings of low-wage workers — the higher pay for some workers gets completely offset by the nonexistent pay of those no longer employed.

In its study, UCSD researchers found that after minimum-wage increases, the national employment-to-population ratio decreased by 0.7 percent points between December 2006 and December 2012.

In addition, the study found that minimum-wage increases hindered low-skilled workers’ ability to rise to lower-middle -lass earnings.

So we need to be really careful about setting economic policy based on emotions. Things that sound nice, which we feel will help the poor, actually hurt the poor. We have to have evidence-driven public policy, not feelings-driven public policy. People’s lives are depending on it.

Filed under: News, , , , , , ,

Should young Americans feel confident about their economic prospects?

Wages of Young Americans (Source: The Atlantic)

Wages of Young Americans (Source: The Atlantic)

Graph: Young People’s Wages Have Fallen Across Industries Between 2007 and 2013.

Young Americans are taking longer to graduate and graduating with more debt, but that’s not all – they aren’t find jobs, and the jobs they do find typically don’t allow them to pay back their loans.

Here’s an article from The Atlantic, which leans left.

Excerpt:

American families are grappling with stagnant wage growth, as the costs of health care, education, and housing continue to climb. But for many of America’s younger workers, “stagnant” wages shouldn’t sound so bad. In fact, they might sound like a massive raise.

Since the Great Recession struck in 2007, the median wage for people between the ages of 25 and 34, adjusted for inflation, has fallen in every major industry except for health care.

These numbers come from an analysis of the Census Current Population Surveyby Konrad Mugglestone, an economist with Young Invincibles.

In retail, wholesale, leisure, and hospitality—which together employ more than one quarter of this age group—real wages have fallen more than 10 percent since 2007. To be clear, this doesn’t mean that most of this cohort are seeing their pay slashed, year after year. Instead it suggests that wage growth is failing to keep up with inflation, and that, as twentysomethings pass into their thirties, they are earning less than their older peers did before the recession.

The picture isn’t much better for the youngest group of workers between 18 and 24. Besides health care, the industries employing the vast majority of part-time students and recent graduates are also watching wages fall behind inflation. (40 percent of this group is enrolled in college.)

It’s not just that – the Democrats are doing a pretty good job of wrecking other parts of the economy, from energy development to health care to entitlement programs to college tuition, which rises higher as government throws more money into the system. They are doing everything they can to wreck the economy with higher taxes and burdensome regulations.

As a result of our headlong rush towards socialism, the U.S. economy has now fallen to number 2 in the worldbehind China.

Look:

We’re no longer No. 1. Today, we’re No. 2. Yes, it’s official. The Chinese economy just overtook the United States economy to become the largest in the world. For the first time since Ulysses S. Grant was president, America is not the leading economic power on the planet.

It just happened — and almost nobody noticed.

The International Monetary Fund recently released the latest numbers for the world economy. And when you measure national economic output in “real” terms of goods and services, China will this year produce $17.6 trillion — compared with $17.4 trillion for the U.S.A.

As recently as 2000, we produced nearly three times as much as the Chinese.

To put the numbers slightly differently, China now accounts for 16.5% of the global economy when measured in real purchasing-power terms, compared with 16.3% for the U.S.

This latest economic earthquake follows the development last year when China surpassed the U.S. for the first time in terms of global trade.

So things are bad for young people, and it’s going to get worse.

It’s important to check what major you are studying to make sure you get a return on your investment, and don’t be scared to study something you hate if it means that you can make your career work. Your education and career choices are not about fulfillment and thrills. You have to make hard choices in order to make ends meet so that you have freedom to do the things you ought to do, especially if you want to get married and start a family. Those marriage and family plans start the day you step into high school, in my opinion.

UPDATE: 17.7% Teen Unemployment in America – Still Above Rate of 6 Years Ago and Labor Force Participation Remains at 36-Year Low.

Filed under: News, , , , , , , , , , , , , ,

Harvard poll: majority of youth likely voters favor Republicans this election

I’m not sure if I really believe this Harvard Institute of Politics poll because young people seem to be so disinterested in moral issues, economics and national security these days. But I guess even young people know whether they have jobs, whether they like living with their parents and whether they want to have their heads chopped off. Right?

Right:

More than half – 51 percent – of America’s millennials who say they will “definitely be voting” in November prefer a Republican-run Congress, with only 47 percent favoring Democrat control, according to a Harvard Institute of Politics poll.

This marks a significant departure from the institute’s findings before the 2010 midterm elections, when America’s 18-29 year olds who were definitely voting favored Democrats 55 percent to 43 percent.

Institute director Maggie Williams described the youth vote as “politically up for grabs” and a potential “swing vote” for control of Congress in a conference call to announce the results.

“The message to political candidates is clear: Ignore millennial voters at your peril,” Williams said.

What’s more, the poll found that only 43 percent of millennials approve of President Obama’s job performance, while 53 percent disapprove. It is his second-lowest rating in the institute’s polls since he took office. The figures are only slightly worse for Obama among those who will “definitely be voting”: 42 percent approve, 56 percent disapprove.

The results showed a stark divide in presidential approval along racial and ethnic lines. Only three in 10 young whites approve of the president’s performance, while nearly eight in 10 young blacks approve. Hispanic youth approval fell to 49 percent, down from 60 percent just six months ago.

Director of Polling John Della Volpe described youth voters as “a little bit less Democratic” than during Obama’s first term, speaking on the conference call. Factoring in the voting likelihood of all millennials, more 18-29 year olds prefer a Democrat-controlled Congress than a Republican one (50 percent to 43 percent), Della Volpe said – but the age group has become less supportive of the party.

“A lot of it comes down to turnout,” Della Volpe said. “It seems that young Republicans are more likely to participate next week.”

And this, I really like:

The poll also surveyed voters about terrorism threats. More than six in 10 millennials say they are “a great deal” or “somewhat” worried about another terrorist attack, with young women (66 percent) more afraid than men (56 percent).

I guess my naive view of young, unmarried women is that they are all like the ones I see in my gym – watching the Bravo channel or game shows to see people with too much make say mean things to one another. But it turns out that they are actually concerned with the economy and national security, which is a very good thing. Welcome aboard, young ladies! It’s not a shame to have a fear of something if the fear is justified, and if you do something about it to make it go away.

And by the way, the men in the gym are just as bad about not paying attention to politics and the economy. The day of the terrorist attack in Ottawa, the men were all watching ESPN sports. Horrible! Even the muscle bound Christian guy changes the channel from Fox News to ESPN as soon as I leave. The only person who is responsible at all is the gay guy – he at least watches local news.

Filed under: News, , , , , , , ,

Click to see recent visitors

  Visitors Online Now

Page views since 1/30/09

  • 4,978,922 hits

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 2,458 other followers

Archives

Follow

Get every new post delivered to your Inbox.

Join 2,458 other followers

%d bloggers like this: