He contradicts himself. >"Adjusted for inflation, people now are spending the same percentage of their income on housing as there were in any generation." >"Housing costs have outpaced inflation and income" So which is true?
Housing Prices: I am a builder in Florida. #1 Impact Fees ex. Ft Myers FL $93,500 in city/county before you turn a shovel. Building Codes in FL are about $100/sqft more than avg, $30,000 so no home can be built for less than about $400k😮
Much worse off , inflation and the cost of living are off the charts… Back in the 90’s early 2000’s you make money and save money… Kids living at home because they can’t afford an apartment…
Ignoring the psychological conditions, even if wealth was relatively close between the generations at the same point in life, the economic conditions are more worrisome now. The state of the national debt and social security point me to millennials being absolutely screwed. My dad retired at 65. While he isn't rich by any means he can afford his mortgage and necessities based off of social security. When I go to retire in about 25 years social security either won't exist or will provide fewer benefits. I'm paying into a system that won't break even to what I paid into it.
I'm 60 and I hate to tell you you're most likely correct for several reasons - globalization/automation, people living longer and having a flat (and soon to be declining) population. I have kids and I'm doing everything I can to pass along enough resources that they'll be OK regardless. But I actually think they'll have to make changes to save at least some form of it - higher taxes, means-testing, and/or raising retirement age. They should have never made it intergenerational; should have made it so each person was funding his/her own retirement. Then it wouldn't matter what demographics were in play.
Its seems silly to state the fact that "more youth have money in the stock market today" while kind of glossing over the obvious reason; that defined benefit retirement plans are gone, and people are forced into stocks with their 401k's.
@@SevenRiderAirForce They had their downsides (inflexibility for one), but for what you paid into them you got far more value out of a pension with lower risk.
Parts of Gen Z weren't even born when the 2008 crash happened. It hit millennials much harder as we were just starting our careers, and most of us didn't have the money to take advantage of the lower housing costs in the wake of the crisis.
Housing is so much more important than everything else in the CPI it's not even close If you didn't buy a house before 2019 you got royally f***** over.. All my expenses went up by about $500 a month but if I were to buy the same house now it would be $3,000 more per month nothing else matters besides housing
Public funding for secondary education is gone for most students and student loans have continued to creep to record highs, home values continue to hit record highs, stocks continue to hit record highs. No recession since 2008. Where is the entry point for newcomers when assets continue to inflate and supply is continuously restricted. Being "young" today is bad because you dont own assets and the entry point is more expensive than its ever been relatove to average wages. Stack on top of that the atomization of families and people are significantly worse off than even 10 years ago. We missed the party and arent getting an invite
It feels like gaslighting to have an academic tell us that we're better off when everything is way more expensive, the debt is now 35 trillion, everyone has diabetes and fertility is dropping off a cliff...
@reedmccullough-si9cr And yet, having watched the bulk of the presentation I find the original comment fairly accurate. This is a case of an academic mistaking a model for real life. You see this all the time with GDP numbers. People assume that a line going up means a healthier economy. It doesn't. It just means more economic activity has taken place. Same thing here.
I find most of the current generations have lofty expectations. and no, avaocado toast and venti carmamel macchiatos aren't creating poverty, but it points to general attitudes in spending. where else do they have cognitive disonnance with respect to spending? I'm at start of the miillenials and I'm surprised at how many college age kids i hear on the bus who will refuse a starting position job below 6 figure salary! that's incredible! this is part of what I mean by lofty expectations and all or nothing thinking. parenting and social media have gone off the deep end. mind you, there's those who are perfectly good, but the trend is very disturbing
They won't expect less than six figures because of the cost of living and, if they are college students, university has exploded. If they want a standard of living similar to that of their parents and grandparents you simply need SO much more money than you used to.
This is just objectively not true. We have more money in the stock market due to 401ks and investing becoming more common amongst the top 20% instead of the top 1% like it used to
My Gen X nieces and nephews didnt believe my first mortgage was at 15% interest, and it was 815 sqft 2 bedroom. Of course I'm a Wedgie Boomer, last two years, VERY different than early-mid Bomers. "We REALLY got shafted"...said every generation, ever...since the Boomers anyway.
Appreciate the shout-outs to Northwest Arkansas. My parents were South Vietnamese refugees and ultimately settled here in the 80s. It's boomed ever since, and I love it here.
There's just a few problems with your argument: The objective reality that I can't buy a house on a minimum wage part-time job like my great-grandparents, that I can't even afford to go to college at all like my great-grandparents and can't get any assistance because I'm the wrong sex and skin color, that I can't get married like my great-grandparents without losing the kids and AT LEAST half my shit because someone didn't feel special and that I can't get any job worth a damn because those are for the privileged women and minorities they prioritze in hiring. I'm sure your charts overrule my own lying eyes, though.
Some of the health statistic differences is just a matter of differences in how statistics are tracked. On infant mortality, I have heard (I don't know if it's true) that in some European countries, they don't count a live birth until the baby survives for some minimum time period so for example if an infant dies 4 hours after birth, that gets counted as an infant death, but in many European countries it wouldn't be recorded as a live birth. Or if you look at pregnancy/child birth mortality for the mothers. IIRC, the US CDC recently got caught counting women who died while pregnant, but for reasons not related to the pregnancy (got run over by a car for example) in the pregnancy mortality statistics. Violent deaths (accidental or criminal) don't reflect on the quality of our healthcare system. I've read that if you adjust life expectancy numbers to remove violent deaths, the US moves up a lot in the life expectancy ratings. These things make the US look worse than it really is.
I think the reason that we today feel worse off is because college didn’t deliver the promise of a prosperous life we were expecting. We were told by our Boomer and Gen X parents that college was the key to success, and that may have been true for them, but it's no longer true for us. A huge percentage of Millennials and Gen Z went into debt to obtain a worthless degree, and as a result, ended up at the same exact spot they would've been had they not gone to college in the first place. College ended up being a complete waste of time that did nothing to help their upward mobility. That's what separates us from our parents - they weren't promised a ticket to prosperity and then had their dreams shattered. They had realistic expectations from the beginning, we didn’t.
In the places where people want to be, all the land is occupied. You can make marginal improvements by loosening zoning laws, but at the end of the day you're waiting for people to sell their property and move. To build the millions of housing units needed now, you need to mass produce buildings and achieve economies of scale. You can't do that in NYC or SF bay, because you just won't get the tracts of land needed to do that on. Building onesie twosie will be much less efficient and more expensive, but it's all you can do. I don't see a way out other than industrial policy to spread growth around.
No worries kids, just wait until you're middle aged and you'll be fine, never mind that the best and most productive years of your life will have been wasted just struggling to survive.
The short answer is: it depends on the individual. On the one hand, yes, everything is so expensive, etc. On the other hand, the baby boomers were predominantly raised by the Lost & Greatest Generations. Not all of those GIs who returned home successfully transitioned back to domestic life, and a percentage of them had hardened themselves to the point where they screwed up their children. Not to mention there's the parents who were traumatized by the assassination of JFK, the social unrest from the '60s and '70s, which Gen Xers had to deal with as well, and let's not forget that if you want to know what a child raised by hippies grows up to be, look no further than Maia Kobabe.
Yes, so those incumbent homeowners would rather live in dead neighborhoods. Places meant for families but all the owners are over 60 and somehow expect the next generation to fund their retirement by buying their home.
Ah, Professor of Economics. Almost invariably have no idea about the economy. The lack of humility comes from it being their specialty. He should probably at least be aware that the way that "inflation" (consumer price index) has been calculated has changed over time. Also with unemployment, this statistic has changed and "employment" isn't the only interesting measure. After all, you can be employed in a minimum wage job, but it doesn't help. We are living in a huge credit bubble. Essentially the primary problem is the ponzi-scheme property market. It's breaks everything else. In the US, because of dollar hegemony, you guys feel the pain less that the rest of the world (even though we have the property bubble too). After all, who else has 30 year fixed interest home loans. Those should not exist in a "real world". Any economist having a realistic and truthful look at the state of the economy would at least caveat their broken views with knowledge that the statistics are lies and probably therefore their implications are false 😂
Im way better off than my parents. I have 4 young children, and my wife is a stay-at-home mom. Im 32 I only make $84,000 gross Bought my farm for $250,000 in 2013 and will have it paid off in 54 more payments. Debt-free is the secret no credit cards no fancy cars I drive 10-year-old vehicles and focus on paying off my farm. American Dream is alive and well stop being a consumer and things are great. My farm is worth $500000 post covid I own a few other farm assets and have a herd of cattle all debt-free. Dave Ramsey should be taught in school. The politicians and elites call middle and lower classes consumers for a reason you will never get ahead as a consumer have a plan for every dollar. budget budget budget discipline = freedom. The younger generations were brainwashed and bred to be consumers our parents took the easy conveniences every chance they could cooking and eating in is the beginning. No more buying coffee on way to work make it for pennies compared to dollars. These are very simple strategies to budget. This nation is in stupid debt and so are most Americans Don't do it!!!!! If your tired of being broke look into Dave Ramseys baby steps.
Zoning, but also pure bureacracy you can be sitting on 30 acres and if you wanted to build a second home for a family member you need minimum 5 licensed professionals and a lawyer to interact with several different government agencies.
With cities, most of the city(80%+) are zoned for single family homes. So, if demand for housing is high in an area, people can't build condos or apartments because of the zoning laws. That's why usa cities are some of the biggest cities by area and least dence cities in the world. It wasn't this way before the 50s
About Manhatten being short of buildible area... you could allow skyscrappers 160 floors integrate energy and waste systems. I don't know how far down you can go
The fact that millennials and gen z are more invested and have less assets. Is a response to their financially inferior position. Not evidence of equality what situationally forced better judgment. At these investments have as expected lead to them catching up later in life is the intention of that judgment. The real cost however was the opportunity cost earlier in life when things must be done such as child rearing which had to be put off for want of financial resources. This cannot be so easily reclaimed. You are of course correct housing is a primary driver and it's directly a government regulations and immigration which like it or not is only adding more people who have to compete for the same finite supply of houses that we can make. All while also competing for jobs holding back wages. Got the immigrant population is so disproportionately unskilled only puts them in direct competition with our young during those critical years. That the young spent so long in college doesn't fact historically reflect they lack of industrial efforts to pull them out earlier with good jobs and careers. People say these are cultural problems and our cultural leaders are certainly responsible for a lot of our problems. But ultimately culture follows economics as it must adapt to the same. People are getting longer education because they don't have good opportunities and are being bankrolled by the government in those educations.
He contradicts himself.
>"Adjusted for inflation, people now are spending the same percentage of their income on housing as there were in any generation."
>"Housing costs have outpaced inflation and income"
So which is true?
Those two statements are not necessarily contradictory. Maybe people are paying for less housing now in terms of area.
Housing Prices: I am a builder in Florida. #1 Impact Fees ex. Ft Myers FL $93,500 in city/county before you turn a shovel. Building Codes in FL are about $100/sqft more than avg, $30,000 so no home can be built for less than about $400k😮
Elon has complained about some of the costs there as well.
Much worse off , inflation and the cost of living are off the charts…
Back in the 90’s early 2000’s you make money and save money…
Kids living at home because they can’t afford an apartment…
No matter how severe a problem, you can always count on this dolt to minimize it.
Ignoring the psychological conditions, even if wealth was relatively close between the generations at the same point in life, the economic conditions are more worrisome now. The state of the national debt and social security point me to millennials being absolutely screwed.
My dad retired at 65. While he isn't rich by any means he can afford his mortgage and necessities based off of social security. When I go to retire in about 25 years social security either won't exist or will provide fewer benefits. I'm paying into a system that won't break even to what I paid into it.
I'm 60 and I hate to tell you you're most likely correct for several reasons - globalization/automation, people living longer and having a flat (and soon to be declining) population. I have kids and I'm doing everything I can to pass along enough resources that they'll be OK regardless. But I actually think they'll have to make changes to save at least some form of it - higher taxes, means-testing, and/or raising retirement age.
They should have never made it intergenerational; should have made it so each person was funding his/her own retirement. Then it wouldn't matter what demographics were in play.
Its seems silly to state the fact that "more youth have money in the stock market today" while kind of glossing over the obvious reason; that defined benefit retirement plans are gone, and people are forced into stocks with their 401k's.
its more because keeping any money in saving means you lose a 30 percent it's Value each year.
Leaves one wondering who actually had more disposable income. Only halfway through, so I'm left wondering if that will be addressed.
Defined benefit programs were unreliable and bad. They failed for a reason. I'm much happier in the world where I own my own account.
@@SevenRiderAirForce They had their downsides (inflexibility for one), but for what you paid into them you got far more value out of a pension with lower risk.
Gen Z not only inherited the fallout of the 2008 great recession, they still continue to live with it.
Parts of Gen Z weren't even born when the 2008 crash happened. It hit millennials much harder as we were just starting our careers, and most of us didn't have the money to take advantage of the lower housing costs in the wake of the crisis.
@@lacky9320 but they inherited the great recession especially since its effects still haven't gone away.
Housing is so much more important than everything else in the CPI it's not even close If you didn't buy a house before 2019 you got royally f***** over.. All my expenses went up by about $500 a month but if I were to buy the same house now it would be $3,000 more per month nothing else matters besides housing
Public funding for secondary education is gone for most students and student loans have continued to creep to record highs, home values continue to hit record highs, stocks continue to hit record highs. No recession since 2008. Where is the entry point for newcomers when assets continue to inflate and supply is continuously restricted. Being "young" today is bad because you dont own assets and the entry point is more expensive than its ever been relatove to average wages. Stack on top of that the atomization of families and people are significantly worse off than even 10 years ago. We missed the party and arent getting an invite
"Its not as bad!" "But the housing?" "Yeah thats bad" "And the rest?" "Well you see there are apps where number go up"
It feels like gaslighting to have an academic tell us that we're better off when everything is way more expensive, the debt is now 35 trillion, everyone has diabetes and fertility is dropping off a cliff...
How can you possibly believe this is an informed opinion 8 minutes after an hour long video drops?
@@reedmccullough-si9cr Because the thesis statement is obviously absurd?
Thesis statements are merely setting the stage. You then wait for the evidence, if your comment attacked his supporting evidence that would be fair.
@reedmccullough-si9cr And yet, having watched the bulk of the presentation I find the original comment fairly accurate. This is a case of an academic mistaking a model for real life. You see this all the time with GDP numbers. People assume that a line going up means a healthier economy. It doesn't. It just means more economic activity has taken place. Same thing here.
@@reedmccullough-si9crit's stupid on its face
I find most of the current generations have lofty expectations. and no, avaocado toast and venti carmamel macchiatos aren't creating poverty, but it points to general attitudes in spending. where else do they have cognitive disonnance with respect to spending? I'm at start of the miillenials and I'm surprised at how many college age kids i hear on the bus who will refuse a starting position job below 6 figure salary! that's incredible! this is part of what I mean by lofty expectations and all or nothing thinking. parenting and social media have gone off the deep end. mind you, there's those who are perfectly good, but the trend is very disturbing
They won't expect less than six figures because of the cost of living and, if they are college students, university has exploded. If they want a standard of living similar to that of their parents and grandparents you simply need SO much more money than you used to.
This is just objectively not true. We have more money in the stock market due to 401ks and investing becoming more common amongst the top 20% instead of the top 1% like it used to
My Gen X nieces and nephews didnt believe my first mortgage was at 15% interest, and it was 815 sqft 2 bedroom. Of course I'm a Wedgie Boomer, last two years, VERY different than early-mid Bomers. "We REALLY got shafted"...said every generation, ever...since the Boomers anyway.
Appreciate the shout-outs to Northwest Arkansas. My parents were South Vietnamese refugees and ultimately settled here in the 80s. It's boomed ever since, and I love it here.
There's just a few problems with your argument: The objective reality that I can't buy a house on a minimum wage part-time job like my great-grandparents, that I can't even afford to go to college at all like my great-grandparents and can't get any assistance because I'm the wrong sex and skin color, that I can't get married like my great-grandparents without losing the kids and AT LEAST half my shit because someone didn't feel special and that I can't get any job worth a damn because those are for the privileged women and minorities they prioritze in hiring. I'm sure your charts overrule my own lying eyes, though.
Some of the health statistic differences is just a matter of differences in how statistics are tracked. On infant mortality, I have heard (I don't know if it's true) that in some European countries, they don't count a live birth until the baby survives for some minimum time period so for example if an infant dies 4 hours after birth, that gets counted as an infant death, but in many European countries it wouldn't be recorded as a live birth.
Or if you look at pregnancy/child birth mortality for the mothers. IIRC, the US CDC recently got caught counting women who died while pregnant, but for reasons not related to the pregnancy (got run over by a car for example) in the pregnancy mortality statistics.
Violent deaths (accidental or criminal) don't reflect on the quality of our healthcare system. I've read that if you adjust life expectancy numbers to remove violent deaths, the US moves up a lot in the life expectancy ratings.
These things make the US look worse than it really is.
I think the reason that we today feel worse off is because college didn’t deliver the promise of a prosperous life we were expecting. We were told by our Boomer and Gen X parents that college was the key to success, and that may have been true for them, but it's no longer true for us.
A huge percentage of Millennials and Gen Z went into debt to obtain a worthless degree, and as a result, ended up at the same exact spot they would've been had they not gone to college in the first place. College ended up being a complete waste of time that did nothing to help their upward mobility.
That's what separates us from our parents - they weren't promised a ticket to prosperity and then had their dreams shattered. They had realistic expectations from the beginning, we didn’t.
In the places where people want to be, all the land is occupied. You can make marginal improvements by loosening zoning laws, but at the end of the day you're waiting for people to sell their property and move. To build the millions of housing units needed now, you need to mass produce buildings and achieve economies of scale. You can't do that in NYC or SF bay, because you just won't get the tracts of land needed to do that on. Building onesie twosie will be much less efficient and more expensive, but it's all you can do. I don't see a way out other than industrial policy to spread growth around.
Useless. Such a superficial analysis and drawing broad conclusions. Bad job
True but the inflation means we should get rid of the penny, the nickel, the paper one and five dollar bills.
No worries kids, just wait until you're middle aged and you'll be fine, never mind that the best and most productive years of your life will have been wasted just struggling to survive.
The short answer is: it depends on the individual. On the one hand, yes, everything is so expensive, etc. On the other hand, the baby boomers were predominantly raised by the Lost & Greatest Generations. Not all of those GIs who returned home successfully transitioned back to domestic life, and a percentage of them had hardened themselves to the point where they screwed up their children. Not to mention there's the parents who were traumatized by the assassination of JFK, the social unrest from the '60s and '70s, which Gen Xers had to deal with as well, and let's not forget that if you want to know what a child raised by hippies grows up to be, look no further than Maia Kobabe.
Yes, so those incumbent homeowners would rather live in dead neighborhoods. Places meant for families but all the owners are over 60 and somehow expect the next generation to fund their retirement by buying their home.
Ah, Professor of Economics. Almost invariably have no idea about the economy. The lack of humility comes from it being their specialty. He should probably at least be aware that the way that "inflation" (consumer price index) has been calculated has changed over time. Also with unemployment, this statistic has changed and "employment" isn't the only interesting measure. After all, you can be employed in a minimum wage job, but it doesn't help.
We are living in a huge credit bubble. Essentially the primary problem is the ponzi-scheme property market. It's breaks everything else. In the US, because of dollar hegemony, you guys feel the pain less that the rest of the world (even though we have the property bubble too). After all, who else has 30 year fixed interest home loans. Those should not exist in a "real world".
Any economist having a realistic and truthful look at the state of the economy would at least caveat their broken views with knowledge that the statistics are lies and probably therefore their implications are false 😂
Im way better off than my parents. I have 4 young children, and my wife is a stay-at-home mom. Im 32 I only make $84,000 gross Bought my farm for $250,000 in 2013 and will have it paid off in 54 more payments. Debt-free is the secret no credit cards no fancy cars I drive 10-year-old vehicles and focus on paying off my farm. American Dream is alive and well stop being a consumer and things are great. My farm is worth $500000 post covid I own a few other farm assets and have a herd of cattle all debt-free. Dave Ramsey should be taught in school. The politicians and elites call middle and lower classes consumers for a reason you will never get ahead as a consumer have a plan for every dollar. budget budget budget discipline = freedom. The younger generations were brainwashed and bred to be consumers our parents took the easy conveniences every chance they could cooking and eating in is the beginning. No more buying coffee on way to work make it for pennies compared to dollars. These are very simple strategies to budget. This nation is in stupid debt and so are most Americans Don't do it!!!!! If your tired of being broke look into Dave Ramseys baby steps.
Zoning, but also pure bureacracy you can be sitting on 30 acres and if you wanted to build a second home for a family member you need minimum 5 licensed professionals and a lawyer to interact with several different government agencies.
With cities, most of the city(80%+) are zoned for single family homes. So, if demand for housing is high in an area, people can't build condos or apartments because of the zoning laws. That's why usa cities are some of the biggest cities by area and least dence cities in the world. It wasn't this way before the 50s
These libertarians are worst than teenagers 😂😂😂
should rename your channel to Unreason TV or Mental Gymnastics TV to reflect your views
About Manhatten being short of buildible area... you could allow skyscrappers 160 floors integrate energy and waste systems. I don't know how far down you can go
Good interview! Guy might be a little liberal for my tastes and I disagree with some of his political analysis, but very enjoyable.
The fact that millennials and gen z are more invested and have less assets. Is a response to their financially inferior position. Not evidence of equality what situationally forced better judgment.
At these investments have as expected lead to them catching up later in life is the intention of that judgment. The real cost however was the opportunity cost earlier in life when things must be done such as child rearing which had to be put off for want of financial resources. This cannot be so easily reclaimed.
You are of course correct housing is a primary driver and it's directly a government regulations and immigration which like it or not is only adding more people who have to compete for the same finite supply of houses that we can make. All while also competing for jobs holding back wages.
Got the immigrant population is so disproportionately unskilled only puts them in direct competition with our young during those critical years.
That the young spent so long in college doesn't fact historically reflect they lack of industrial efforts to pull them out earlier with good jobs and careers.
People say these are cultural problems and our cultural leaders are certainly responsible for a lot of our problems. But ultimately culture follows economics as it must adapt to the same.
People are getting longer education because they don't have good opportunities and are being bankrolled by the government in those educations.
More know nothing know-it-alls whistling past the graveyard.
Who are you going to believe, the stats or your lying eyes.
Are millennials with kids better off than their parents? I don’t think so
Yeah they are worse off
Bad take guys, yikes
🤣