Monday, November 7, 2011

AP: "U.S. Young-Old Wealth Gap Worse Than Ever" // More Evidence of a Generational Political Divide

Maryland Juice is slowly outlining a theory that there is increasing evidence of a growing generational divide in American policy and politics. Many pollsters have noted the dramatic contrast in views between young and old Americans on a range of topics, including race, LGBT rights, urbanization, public transportation, the role of religion in society, drug policy, gender norms, and many more. Indeed, even young evangelicals are more accepting of LGBT rights than their older counterparts.

But in the past, these generational divides have mostly centered on social issues. Now that we are well into a recession, I believe that current economic inequalities are quickly amplifying these generational divides. The Associated Press today highlighted shocking validation for this belief:
The wealth gap between younger and older Americans has stretched to the widest on record, worsened by a prolonged economic downturn that has wiped out job opportunities for young adults and saddled them with housing and college debt.

The typical U.S. household headed by a person age 65 or older has a net worth 47 times greater than a household headed by someone under 35, according to an analysis of census data released Monday....

The 47-to-1 wealth gap between old and young is believed by demographers to be the highest ever, even predating government records....

While the wealth gap has been widening gradually due to delayed marriage and increases in single parenting among young adults, the housing bust and recession have made it significantly worse....

Older Americans are staying in jobs longer, while young adults now face the highest unemployment since World War II....

Paul Taylor, director of Pew Social & Demographic Trends and co-author of the analysis, said the report shows that today's young adults are starting out in life in a very tough economic position. "If this pattern continues, it will call into question one of the most basic tenets of the American Dream — the idea that each generation does better than the one that came before," he said.

Indeed, it is hard not to notice that these days many younger Americans seem to be very disgruntled (don't be lame and assume it is just the #Occupy protestors). A lot of unexpected things are happening right now if you put your ear to the ground. Even I am surprised at the surge of youth outcry over Montgomery County's curfew proposal, and I am even more surprised that one million Americans abandoned their banks in favor of credit unions this month. But rather than accepting the AP's premise that young Americans may not have the opportunity to be as financially successful as their parents, I think the more nuanced answer is that young people are also redefining what it means to be successful (perhaps unwillingly).

It seems clear that younger generations are not content with the pace of change on a whole range of issues. These expectations may be growing as youths increasingly use the efficiencies available from technology to streamline their lives and generate new modes of communication and activity. In contrast, government too often moves at a snail's pace, even with seemingly minor issues. That's why many young people are simply circumventing the institutions established by older generations and are instead creating their own (this blog included).

For example, a recent article from the smart growth/new urbanist blog Greater Greater Washington (GGW) highlighted the following comments from panelists on the role of the Internet in shaping transit policy:
Social media played a gradually growing role in Rail~Volution over the past few years....

One audience member said she associated blogs with someone posting pictures of their cat. And certainly that sort of thing used to be a primary function of blogs. But these days, many blogs have become a major part of the conversation. In fact, blogs like Streetsblog and Greater Greater Washington are changing the conversation.

And that's really how I see the role of Greater Greater Washington. Not as a way of bringing people over to our opinion, but as a way to give people the tools they need to be a productive participant in the conversation.
Indeed, in the District of Columbia, politicians can no longer afford to simply ignore issues raised on GGW and even attend events sponsored by the blog. The Washingtonian magazine recently discussed these generational issues from a different angle, but came to similar conclusions in an article titled "Are Twentysomethings Expecting Too Much?" Their focus was not on unemployed adults, rather they discussed the shifting expectations among those that do have work. The article also highlights the following spot-on (IMHO) comments from a 31-year-old government employee named Scott:
“The government is like the Ivy League—it sounds amazing, but being there often sucks,” Scott says over dinner in Dupont Circle. He’s trying to hold onto the idealism that inspired him and lots of others in his generation to go into public service, but the day-to-day of the job isn’t what he expected.

Scott was shocked that he had to wait a week to get a computer and that the one he was given seemed outdated, with a slow browser. But those are quibbles compared with the larger ethos of the place. “The system is so rigid and slow and often beats down people with fresh ideas,” Scott says.

He isn’t the first government employee to complain about red tape, but instead of just griping he’s looking for ways to take what he’s seen and offer some solutions. What bothers Scott the most? “A lot of government is stuck in an antiquated model. It’s from another generation, not this generation.”

Scott believes that the government is the antipode of the most cutting-edge companies in America—Google, Facebook, Apple. The federal government, with its 2 million civilian* employees, isn’t likely to have a start-up culture, but Scott maintains that even at that size it could do a better job of attracting and retaining young employees who value efficiency, speed, and organizational structures that are flatter.
The author of the article herself lamented over her personal economic situation and the impact it was having on her life choices:
Speaking of money, how would we afford children if we stay in DC, one of the most expensive cities in the country?....

Even without student loans to pay off, we find it hard to save as much as financial planners say people our age should. I’m often reminded of the acronym DINK—dual income, no kids—which should probably be changed to DINA: dual income, need another. Sure, we could move to a less expensive area of Washington or take a job for the salary, but we’re young and not ready to settle. We want to see if we can make life work on our terms....

Their concerns may seem trifling at a time when unemployment for people between ages 16 and 24 is in the double digits. But far from feeling lucky simply to have a job, many of today’s highly educated, tech-savvy Gen Yers are asking more from work than previous generations ever did....

But perhaps it’s not as much that twentysomethings are taking longer to grow up as it is that they’re defining adulthood in new ways, with different goals. Instead of a steady job, they want a meaningful one that serves a larger purpose or fulfills a personal passion. And instead of settling down with a spouse and mortgage, they want more years of freedom to chase career dreams and explore different paths before they have to make tradeoffs....

As a result, people born between, say, 1980 and 1995 are reconsidering some of the once-sacred aspects of the American workplace. Things such as the 9-to-5 schedule, company loyalty, dues-paying, and hierarchy are being discarded at a fast clip. And we’re becoming evangelicals for the notion that work should be personally satisfying, even in a tough job market.

What will happen when this generation advances in society? I can't wait to find out....

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