As a member of the baby boom generation I don’t envy my son’s Gen Y generation: 1982-2004 also known as echo boomers. In the corrupt lobbying form of crony government practiced in this country, it is clear these age cohorts have little, if any representation. In fact, it is quite arguable that they are foils, and are being thrown under the bus. Indeed the majority of corruptos in Congress are members of the baby boomer cohort.
Poor conditions for younger people, is not just an American problem. This chart of European youth unemployment defines how severe the youth economic depression is becoming there.
Given that the government has come to completely dominate, if not control the US economy, inquiring minds might want to know why it is that youth employment has badly sagged, while the older cohort is doing fine thank you.
The US Government has gone out of its way to promote and finance inflated educations that have failed to translate to the bottom line; gainful employment. This experiment (or scam) has resulted in nearly a trillion in student debt of which 11% is seriously delinquent.
One of the flaws of depending on the fleecing of poor younger generations is that because of demographic trends there are fewer of them to support the increasing older cohort and the crony sistema. This is true in all the major developed economies and is getting progressively worse. It is the very definition of eating your young.
Just one example of how this plays out in corrupt lobby-style government is evident in Obamacare. Because older individuals are much higher risk customers, they now pay six or seven times in premiums of what younger people do. Obamacare will exploit young people by imposing a ratio of no greater than 3-1 which will have the effect of adding about $1,000 a year to the health care insurance of younger, healthier people, all for the purpose of subsiding the elderly. Obamacare also creates new subsidies for paying for health insurance for millions, but especially benefiting older generations.
If young people are planning on riding the real estate inflation train they might wish to think twice. Just as housing prices were pushed higher by a healthy dependency ratio, it could be pushed lower by a a more dependent population.