The labor force has been radically restructured (by the Boomers, not insignificantly) so that we work, when we can find work at all, longer hours for less money with no job security. How does one save up for a car or mortgage down payment on the kind of salaries most people who weren’t born into wealth earn in their 20s? How are young people expected to make a 5 year auto loan commitment (or 30 for a mortgage) when their employment is “at will” or when people spend years working as “permanent temps”? As I’ve said before, even the people in my age group I know personally who are doing well – and as someone with full-time employment and health insurance, I consider myself fortunate to be in that group – have tremendous insecurity about the future. In other words, even those of us who might be able to afford a new car now refuse to buy simply because we don’t know if our job will still exist (or who will be doing it) in a couple of years.
It is amusing to see how far analysts and journalists will go to avoid grappling with the relatively obvious fact that young people aren’t buying what they’re “supposed to” be buying because we, as an economy, are not paying them much. Or employing them at all. Or giving them any kind of long-term security necessary to induce them to make financial commitments to homes, cars, or other expensive purchases. This kind of denial of the obvious is becoming a trademark of Boomer-led journalism and financial analysis, the wailing and gnashing of teeth over the failure of consumers to rescue the economy by buying the things they’re supposed to be buying. Yet rarely do they consider the simplest solution, that younger people do not make these kinds of economic commitments because this society is now structured to make doing so impossible. God help the auto industry when this wave of retirees dies out.
What he said.