Podcast Summary
Millennials born in 1990 and 1991 make up the largest living population in the US: The economic impact of 9.5 million millennials in their early 30s is significant, influencing housing markets and industries like weddings.
The millennial generation, specifically those born in 1990 and 1991, make up the largest living population in the United States. This demographic cohort, numbering around 9.5 million people, is currently skewing the millennial generation towards early 30-somethings. This means that economic trends, such as housing markets and wedding industries, are heavily influenced by the decisions and life stages of this large population group. As an economics reporter, Gina Smilk has noticed this trend in her own life, and it's not just limited to her personal experiences. This demographic shift has significant implications for the US economy as a whole.
Significant population growth in the US in the early 1990s: The 'peak millennials' cohort created a high demand in various sectors, leading to economic adaptation and potential substantial impact on the US economy.
The years 1990 and 1991 were significant for population growth in the United States due to a combination of natural population increase and immigration. This large cohort, referred to as "peak millennials," has created a high demand in various sectors of the economy as they progress through different stages of their lives. The economy has had to adapt to this demand, resulting in a metaphorical squeezing into a too-small sweater. This has been most evident in areas such as higher education, the labor market, and housing. As peak millennials enter crucial economic decision-making stages, their impact on the broader US economy could be substantial. Understanding the effects of this demographic trend is essential for assessing the current and future economic landscape.
Impact of Peak Millennials on Higher Education: Peak millennials expanded higher education but faced a challenging labor market with large student debt
The peak millennial generation had a profound impact on higher education during their college years, leading to expansion and later contraction as they moved through the system. This period also saw a significant increase in student debt, surpassing credit card debt as the largest source outside of mortgages. Graduating during the Great Recession, peak millennials faced a challenging labor market, with many entering into low-paying jobs despite holding bachelor's degrees. The combination of a large population and a weak job market made for a difficult entry into the workforce, potentially exacerbated by the high levels of student debt accumulated during their college years.
Millennials faced unique economic challenges entering the workforce: Millennials faced earning less and carrying more debt, delaying major financial decisions like homeownership, potentially leading to long-term wealth disparities
The peak millennial generation faced unique economic challenges, including earning less and carrying more debt than previous generations when entering the workforce. This, in turn, impacted their ability to buy homes as housing prices and interest rates rose. The combination of a large millennial population and external economic forces created a fierce competition for resources, leading to significant delays in major financial decisions. The long-term implications of this demographic reality include millennials playing catch-up economically and potentially facing long-term wealth disparities compared to older generations. Additionally, the delayed entry into homeownership could have ripple effects on the housing market and the economy as a whole.
Economic struggles lead to delayed milestones and decreased fertility: Economic challenges faced by millennials result in delayed financial stability, homeownership, and family planning, leading to decreased fertility rates and potential economic consequences such as a smaller workforce and labor force participation, less consumer spending, and potential retirement funding issues.
The economic struggles and delays faced by peak millennials, such as Thomas Stiller, have significant long-term consequences. These delays in achieving financial stability and milestones like homeownership and starting a family have led to decreased fertility rates among millennials. This trend has implications for the economy as a whole, including a smaller workforce and labor force participation, less consumer spending, and potential issues with funding retirement systems due to fewer people contributing to them in the future. It's essential to consider these interconnected issues and their potential impact on individuals and society as a whole.
Impact of Generation Size on Economic Health: The size of a generation significantly influences economic health, with larger generations leading to greater economic consequences and smaller generations potentially facing fewer long-term issues.
The size of a generation can significantly impact its economic health, as seen with the baby boomers and millennials. While both generations are similar in size, the jump in population size from the preceding generation was much larger for the baby boomers, leading to a "giant sweater" effect and severe economic consequences. Millennials, on the other hand, represent a smaller jump in population size, and although they've faced financial strain and delays in economic development, they may still end up okay in the long run, as evidenced by their recent progress in building wealth and low unemployment rates. However, the millennials' delayed economic progress will continue to stretch the "sweater" of the economy, potentially affecting those outside their generation.
Navigating Economic and Sociological Complexities as a Gen Z Member: Gen Z faces intense competition from millennials in the housing market while expressing feelings of disillusionment and frustration with the economic system, leading to a sense of detachment from politics.
The large size of the millennial generation, now surpassed by Gen Z, presents both opportunities and challenges. On the positive side, smaller graduating classes may lead to more job opportunities for Gen Z in the labor market. However, they will face intense competition from millennials in the housing market, as demand for entry-level homes is expected to remain high throughout the decade. Additionally, many Gen Z members express feelings of disillusionment and frustration with the economic system, leading to a sense of detachment from politics. These themes align with recent polling indicating younger Americans' growing dissatisfaction with the current administration. Overall, being a member of Gen Z means navigating these economic and sociological complexities.
Millennials face economic challenges beyond their control: Millennials' economic struggles are influenced by their generation's size and timing, exacerbating existing economic challenges. Whistleblower John Barnett's death highlights the importance of speaking out against dangerous practices and corporations' responsibility for safety.
While millennials have been criticized for various economic issues, the root causes often lie beyond their control. The generation's size and timing have contributed to amplifying existing economic challenges. Meanwhile, in other news, John Barnett, a former Boeing quality manager, died under suspicious circumstances after blowing the whistle on the company's alleged unsafe manufacturing practices. Barnett's accusations, which date back to 2017, have gained renewed attention in light of Boeing's safety issues, including crashes of two 737s and a fuselage panel blowout. Barnett was set to testify in a lawsuit accusing Boeing of retaliation when he was found dead in Charleston. The tragic incident underscores the importance of speaking out against potentially dangerous practices and the responsibility that corporations have to ensure safety.
