Author Topic: American millennials think they will be rich  (Read 760 times)

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Offline daftandbarmy

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American millennials think they will be rich
« on: April 22, 2019, 21:30:07 »
Uh oh... no participation medal for that one  ::)

MORE THAN half of American millennials, the generation of people born between 1981 and 1996, believe that they will one day be millionaires; one in five think they will get there by the age of 40. These are the findings from a survey conducted in 2018 by TD Ameritrade, a financial-services company.

But a working paper by the Brookings Institution, a think-tank, offers a sobering antidote to this youthful optimism. It finds that millennials are less wealthy than people of a similar age were in any year from 1989 to 2007. The economic crisis of 2008-09 hit millennials particularly hard. Median household wealth in 2016 for 20- to 35-year-olds was about 25% lower than it was for the similar-aged cohort in 2007.

https://www.economist.com/graphic-detail/2019/04/22/american-millennials-think-they-will-be-rich
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Offline FJAG

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Re: American millennials think they will be rich
« Reply #1 on: April 22, 2019, 23:07:24 »
Recent Canadian statistics agree. While millennials are earning more than their predecessors, they also incur far more debt.

Quote
Millennials make more money than previous generations in that demographic cohort, but are also saddled with much more debt, even adjusted for inflation, according to new Statistics Canada data that confirms what has been long suspected.

The data agency analyzed income, wealth and debt levels for different Canadian generations over various time frames to see how they are doing, compared to each other....

See here:

https://www.cbc.ca/news/business/millennials-income-statistics-canada-1.5106460

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Offline mariomike

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Re: American millennials think they will be rich
« Reply #2 on: April 22, 2019, 23:17:03 »
The 'Baby Boom' generation is aging. As those 'boomers' retire, they become consumers of health care, driving up demand for services.

Since subsequent generations are typically smaller, employers may be experiencing difficulty in recruiting suitably trained replacement staff.

Offline FJAG

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Re: American millennials think they will be rich
« Reply #3 on: April 22, 2019, 23:49:57 »
The 'Baby Boom' generation is aging. As those 'boomers' retire, they become consumers of health care, driving up demand for services.

Since subsequent generations are typically smaller, employers may be experiencing difficulty in recruiting suitably trained replacement staff.

This is one reason why we have immigration.  ;D

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Offline AbdullahD

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Re: American millennials think they will be rich
« Reply #4 on: April 23, 2019, 01:48:51 »
The 'Baby Boom' generation is aging. As those 'boomers' retire, they become consumers of health care, driving up demand for services.

Since subsequent generations are typically smaller, employers may be experiencing difficulty in recruiting suitably trained replacement staff.

I read somewhere as boomers grow older and pass away, house prices may nosedive. Creating buying opportunities. Which could change everything.

Also I feel the debt burden isnt just generational, access to debt from what I recall has been far more accessible then ever before.

Still silly overburdening ones self with bad debt, never helps.

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Offline Remius

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Re: American millennials think they will be rich
« Reply #5 on: April 23, 2019, 09:15:06 »
There is also the fact that baby boomers will be leaving large amounts of inheritance money and assets to their kids (or not).  or so the millennial kids might think.

It isn't that cut and dry but I can see why they would think they might get a winfall.

 http://www.bbc.com/capital/story/20181205-with-boomers-wealth-to-inherit-will-millennials-get-rich

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Offline mariomike

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Re: American millennials think they will be rich
« Reply #6 on: April 23, 2019, 09:38:50 »
Live in mom's basement long enough, and sooner or later you will own the place. If they don't evict you first.

Unless Mom and Dad take out a reverse mortgage. :)

Deadbeat son gets eviction date after parents sue to force him out
https://nypost.com/2018/05/24/deadbeat-son-who-was-sued-by-parents-has-one-week-to-move-out/

Millennial Activist Vows to Sue ‘Loving’ Parents for Giving Birth to Him Without ‘Consent’
https://pluralist.com/millennial-anti-natalist-to-sue-parents-for-his-birth/

« Last Edit: April 23, 2019, 09:42:49 by mariomike »

Offline Eaglelord17

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Re: American millennials think they will be rich
« Reply #7 on: April 23, 2019, 11:07:35 »
Since subsequent generations are typically smaller, employers may be experiencing difficulty in recruiting suitably trained replacement staff.

There is going to be a shortage as the Boomers basically locked themselves in a bunch of jobs for decades and didn't train many people on how to do them. Now with all the Boomers retiring there is no one to take their places as they never trained anyone for the job.

I am in the skilled trades and I can safely say I am going to be very secure in the future. The average age of a millwright in the Country is 55 years old... which is insane. My workplace looks like a bunch of old men who are on their last legs, and a bunch of men in their early 20s just out of college (I fit into the early 20s category), no middle ground.

Its not that Millennials can't do the jobs, its that no one wants to train us on how to do them. The good news is we tend to be good at figuring out things on our own, so that is a positive as no one really will be around to teach us. The other positive is we shall be in the position to take over these jobs when they become available from the Boomers. Standards will likely drop for many of them as they won't have much of a choice because the positions will need to be filled (the job standards might actually be reduced to what they were when the Boomers first got those same jobs).

In regards to do I think I will be a millionaire? Maybe, personally I have no debt other than my mortgage, make close to 6 digits (could easily make 6 digits if I chose to), and am in my early to mid 20s. So its definitely doable if I set my mind to it. I also think I have bigger priorities than having a lot of money sit in the bank doing nothing.

Lots of potential opportunities are opening up, you just have to be in position to take advantage of them.

Offline mariomike

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Re: American millennials think they will be rich
« Reply #8 on: April 23, 2019, 11:30:15 »
Millwrights are pretty amazing. I got to know a few from our water or wastewater facilities.

Offline Blackadder1916

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Re: American millennials think they will be rich
« Reply #9 on: April 23, 2019, 12:17:46 »

Its not that Millennials can't do the jobs, its that no one wants to train us on how to do them. The good news is we tend to be good at figuring out things on our own, so that is a positive as no one really will be around to teach us. The other positive is we shall be in the position to take over these jobs when they become available from the Boomers. Standards will likely drop for many of them as they won't have much of a choice because the positions will need to be filled (the job standards might actually be reduced to what they were when the Boomers first got those same jobs).


One of the by-products of the "quarterly profit and dividend" mentality of (North) American business.  Why spend money providing training to employees when you can require them to show up with a credential from a private training institution in order to get a job and expect them to hit the ground running.

https://www.entrepreneur.com/article/314468
Quote
According to Peter Capelli, director of The Wharton School's Center for Human Resources, companies want workers they don't have to educate, and his research has found that employers don't train young workers like they used to.

In 1979, per Capelli, the average young worker received 2.5 weeks of training per year. By 1995, training time fell to just 11 hours.

More recent comparable data has been hard to find, says Capelli, but the Wharton professor says that by 2011 "only a fifth of employees reported receiving on-the-job training from their employers over the past five years."

What's going on here is something that's often called the tragedy of the commons. Society as a whole is better off if workers are properly trained. Trained workers mean more productive ones, which mean more productive companies and greater overall economic output. However, individual companies are better off if they leave the cost of training to their competitors. More companies these days, it seems, want a free ride.

Whereas in some more developed European countries business recognizes there is no such thing as a free ride.
https://qz.com/283212/why-germany-is-so-much-better-at-training-its-workers/
Quote
. . Today in America, fewer than 5% of young people train as apprentices, the overwhelming majority in the construction trades. In Germany, the number is closer to 60%—in fields as diverse as advanced manufacturing, IT, banking, and hospitality. And in Europe, what’s often called “dual training” is a highly respected career path.   . . .

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Offline daftandbarmy

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Re: American millennials think they will be rich
« Reply #10 on: April 23, 2019, 12:54:03 »
One of the by-products of the "quarterly profit and dividend" mentality of (North) American business.  Why spend money providing training to employees when you can require them to show up with a credential from a private training institution in order to get a job and expect them to hit the ground running.

'If you train people, won't they just leave to get a better job?' (true quote :) )
"The most important qualification of a soldier is fortitude under fatigue and privation. Courage is only second; hardship, poverty and want are the best school for a soldier." Napoleon

Offline Blackadder1916

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Re: American millennials think they will be rich
« Reply #11 on: April 23, 2019, 13:11:28 »
'If you train people, won't they just leave to get a better job?' (true quote :) )

If you know what you are doing, you are the "better job".
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Offline FJAG

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Re: American millennials think they will be rich
« Reply #12 on: April 23, 2019, 13:33:33 »
If you know what you are doing, you are the "better job".

That's often not true because workers follow the money. In my law firm the biggest net recipient of people we trained was the federal and provincial civil service who would pay substantially more than civilian law firms could afford. Since we were the biggest private sector law firm in our territory we paid slightly more than other firms and as a result we were also the recipients of experienced people trained by lower paying firms. It's a vicious food chain.

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Offline Remius

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Re: American millennials think they will be rich
« Reply #13 on: April 23, 2019, 13:37:03 »
And millenials are more about lifestyle than they are about money.  While they might be interested in money it isn't as important as what they will be doing and how much time off they get.
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