According to an Economics 21 study:
- Bureau of Labor Statistics data indicate that unemployment among 20- to 24- year olds in June 2015 was 10%. For those who are 25+, it's 4% and for teenagers it was 18%. For millennials, the Fed's policies have slowed the economy which, in turn, has disproportionately affected them negatively as they try to gain entry into the labor force.
- In the first quarter of 2015, homeownership for Americans <35 years old declined to 35%. That's the lowest on record since the Census Bureau started tracking this statistic in 1982. For millennials, the Fed's policies have resulted in inflated housing prices...and Fed interest rate increases are just over the horizon. Yesterday--not tomorrow--was a good day to finance a house.
- Since the 1970s, the dollar's purchasing power has declined 80%+. For millennials, what cost $1 in 1970 costs $5 in 2015. Their wages for the same job in 2015 would have to be 500% greater than the same wage for the same job in 1970...and that's just to break even.
- The Federal Reserve signed off on hundreds of risky bank mergers that were blatant political bargains involving megabanks ("too big to fail") and political activists. When U.S. indebtedness from all of these "investments" care of U.S. taxpayers comes due (and it will, sooner rather than later), the millennials will end up paying off the debt through some combination of higher taxes, cuts to "entitlements," and/or fewer government services (think: no Social Security even though they've paid into it).
Bankers, investors, and homeowners have been the primary beneficiaries of Fed Chair Yellen's policies. But, the economy and millennials aren't and won't be today...tomorrow...or, it appears, for a very long time.
Let the discussion begin...
To read the Economics 21 report, click on the following link:
"Why Millennials Should Pay Attention to Monetary Policy."