“It almost always happens that when the immediate consequence is favorable, the later consequences are disastrous, and vice versa.” -Bastiat
Let’s stop pretending that there are no negative consequences for what we’re doing. Life is not all peaches and good intentions. There are actual consequences in life that no amount of good intentions can correct.
There is a severe shortage of truth in this county, and an even shorter supply of people willing to accept the truth. Instead we desperately cling to our delusions in and pretend that if we just believe hard enough, nothing bad will happen. Like the child who thinks hiding under the covers will protect her from any monsters lingering in the closet.
And please let’s stop saying that this policy would have worked “but for” this specific circumstance, and if we just do it all again it would work. That’s the definition of insanity. It is nothing but pure superstition.
You cannot honestly look me in the eye and tell me that we are not robbing from our young. You cannot honestly believe that we’re not living a product of generational theft. It is time that we had honest conversations about the choices we’re making as a country and what that means for our future.
Yes caring for our needy, healthcare for all, and free college sound awful nice, but how do you have a conscience and talk about these things like we’re not signing a blank check that will some day bounce. You gaslighting bastards have stolen our futures and then continue to lie to us that the economy is recovering and that if we just work hard enough we’ll have the same wealth as our parents.
What is the single most thing hamstringing the future?
Debt, debt, and more debt. America has gotten into a bad habit of spending money that it doesn’t yet have. We’ve been taking advances banking on a best selling album that flops worse than Paula. This debt unfortunately isn’t going anywhere and will have to shouldered by millennial’s trying to make the best of an awful situation.
Things that our parents accomplished seem impossible if not downright wasteful. Boomers might call us perennial children that are dragging our feet into adulthood, but they miss the ball and chain around our leg holding us back.
America is child’s play compared to many countries in the world with a 40% youth unemployment. This a trend found all over the world, and it doesn’t speak well for the state of the globe.
Millennials where we at though?
Will we wait until we are as broke and unemployed as our European peers? Or maybe it has to get as bad as in Venezuela where you pay thousands of dollars for toilet paper and there are more people unemployed than employed. There is nothing worse for a country than a bunch young people running around with nothing to do.
The problem is not that kids are not educated enough for work. Millennials are the largest and most educated generation (if only we weren’t all majoring in pottery 🙄) in the U.S., yet we are facing an unemployment rate of 12.7 percent. Our generation is struggling to find good-paying jobs or start our own businesses due to regulatory barriers that are creating roadblocks to quality opportunities.
What’s worse is that the jobs we are getting are still averaging a salary of below $35,000. For those of you who think that’s enough, consider that Millennials earn 20 percent less than Boomers did at the same stage of life. Of course we also face higher costs for everything so getting paid less plus paying more is really a drain on our youthful enthusiasm.
According to a new report from the Census Bureau, in 2016 the four common milestones of adulthood — getting married, having kids, getting a job and living on one’s own — were achieved by only 24 percent of adults by age 34. The drain is sucking not only the money from our pockets but years from our lives as we struggle to keep up with the milestones set by our parents.
I don’t want to be the new Lost Generation. The last one we had in America were a bunch of bitter hard nosed bunch that saw a World War and a great depression. I just don’t want to see that kind of destruction here. Ugh I don’t want to be the new hikikomori destined for unemployment and hopeless suicide.
We could stop and reverse course to make the best out of it if we acknowledge the truth of certain policies. The first step is admitting you have a problem.
Colleges are stealing from us
The illusion of college education is getting tiring. Do colleges really deserve all the money we pay them? They got a good deal going, students are damn near forced to go to school, they take out loans, to pay for the higher costs and no matter if they can pay them back or not the school gets paid. College costs have risen much faster than average inflation for decades so these fat cats are sitting comfortable. They can even up their tuition and the kids keep coming because the bank keeps giving non-dischargeable loans.
Total tuition and room-and-board rates for full-time undergraduate students at degree- granting institutions increased by 32% from the 2005-06 to the 2011-12 academic year. They look at the student loan crises, the youth unemployment crises, and atrophy of education and just laugh. Why care when you get paid? Not only do they receive the loans, but they get their nice subsidies and grants from the Federal Government to keep fleecing the students.
Here is what we need to do, limit subsidies that colleges are allowed to receive from the federal government, promot accountability for poorly-performing schools, and encourage alternative forms of education where the costs are not as high.
End the Federal Student Loan Program
In 1992, Congress increased the amount of money a student can borrow from the federal loan program with the reauthorization of the Higher Education Act. The act also enabled students defined as “in need” easier access to funding. Now we see student loans dominating the higher-education industry and accounting for 50% of all financial-aid packages.
The effects have been an astronomical increase in the amount of student loans held by the government. From 1993 to 2006, the federal government’s student loan portfolio swelled, from $353 million to $109 billion, which amounted to 23% of total student loan debt. If that that wasn’t enough the Federal Government passed “Ensuring Continued Access to Student Loans Act.” By 2010 the Federal Government owned 85% of loans.
What is to be done? The central problem is that students are borrowing too much to attend college. Since 2000, tuition and fees have increased 46% at private four-year universities and 94% at public ones, after adjusting for inflation.
I don’t know how you can expect students not to take out these great loans when they are following into the footsteps of our county. The US national debt is almost $19 trillion and continues to grow every day. And guess will have to pay the bill? Millennials. US consumer debt is approaching a record 20% of GDP, meaning we are spending more and more money just to pay for things we bought in the past.
And because the loans can’t be discharged through bankruptcy, lenders and schools don’t have any skin in the game so they will gladly throw large sums of money at 18 year olds. There are cries that the Federal Government itself is profiting from the giant student loans we’re taking out. According to the latest projections from the CBO, the federal government will earn about $127 billion over the next ten years from its recently acquired role as the direct provider of most student loans. The breakdown of these profits (CBO makes you do the math from tables that are here). Of course the CBO is often wrong and always has it’s own agenda.
The program produces a profit because the interest rate paid by borrowers exceeds the federal government’s cost to fund those loans and administer the program. The figure also accounts for loan defaults and borrowers’ use of flexible repayment plans that tie monthly payments to their incomes.
“This is a profit-making machine for the Education Department,” said Chris Hicks, who leads the Debt-Free Future campaign for Jobs With Justice, a Washington-based nonprofit group. “The student loan program isn’t about helping students or borrowers — it’s about making profits for the federal government.”
Total student debt has doubled since 2007, according to the Federal Reserve — a group of federal regulators, policymakers and student loan experts worry that the nation’s economy will be restrained for years as monthly student loan payments take an increasing bite out of borrowers’ paychecks.
The share of 25-year-olds with student debt increased from 25% in 2003 to 43% in 2012, and over the same time period the average student loan balance among 25-year- olds with student debt grew by 91%. In 2012, for the first time in at least 10 years, 30-year-olds with no history of student loans were more likely to have home-secured debt than those with a history of student loans.
90+ day delinquency rates for federal loans have increased from less than 10% of all borrowers in 2004 to approximately 17% of all borrowers, even with increasingly lenient repayment and forgiveness options. The long-term impact on the federal deficit may prove problematic.
Over 43 percent of former students who borrowed from the federal government are in default, behind on their payments, or aren’t making payments on their federal student loans.
Are we the Heroes or are Lost?
Will Millennial’s help save this country or will we sink with it. That is what should be going through every kids mind. If we don’t help stop the leak we will all go down with this ship. This means stop listening to people who tell you what to believe. Stop going to colleges and feeding those fat cats. Stop blindly following a politician because they have are a Democrat.
It is time to realize that this world isn’t what we were made to believe. We can no longer look at a law that’s dress pretty in good intentions and blindly believe it will work. We can’t right off a Republican because they speak an inconvenient truth that doesn’t fit the make believe bubble that we were raised in.
The biggest FU to the old people that got us into this situation is the rising level of conservatism. Not just personal conservatism but politically as well.
“We see areas where millennials are willing to spend, but overall, they’re not levering themselves up to make their dollars go further; they’re being much smarter and much more conservative about their balance sheets,” Drucker Mann said on a January episode of Goldman Sachs’
While our parents are living in the glory days of the liberal take over of America, Conservatives are creeping into the house and sleeping with their wives. They have no idea what they’re in for. I’m done with colleges and bogus student loans. I’m done pretending that the world is the way it was when my mom was a kid. It is just not reality. It’s time to make laws that actually fit into reality.
Also published on Medium.