Adding to the worries of young adults in this country are the following two stories I noticed recently.
In the first story, The New York Times reported the following:
The teenage unemployment rate … is at 25.5 percent, its highest level since the Bureau of Labor Statistics began keeping track of such data in 1948.
One factor believed to be contributing to this is the fact that older workers are more hesitant to retire. Given the current economic climate, and dips in investment gains on 401k plans that have occurred, these older workers, although close to retirement age, are nervous about retiring, or they just simply can’t retire in such an environment.
Another factor not noted in the report could possibly be the gradual increases in the minimum wage that have been implemented over the years. Many economists have argued over the years that such government-created, artificial wage increases effectively price-out low-skilled, younger workers from the job market.
The second story came from the Wall Street Journal. It reported that new legislation making its way through Congress may have the effect of ending private student loans. That leaves the government as the “sole provider of college loans.” No doubt, this would all but end competition in the student loan market. Such monopolization of college financing tends to increase the cost of tuition over the long run — adding more to the financial burden of young adults.
For young adults, the future doesn’t looked as bright as they would hope. And that doesn’t even begin to consider the mounting federal debt they will eventually have to pay off, as well as the unsustainability of the Social Security and Medicare systems. The future is … not so bright.