Millennial's growing poorer

[Eric Bilderback]

Listening to people beat up on the young folks for having their student loans paid off. Look at this people born between 81 and 96 are getting poorer while the rest of us are getting richer. What this is really saying is people who own assets like real estate are getting wealthier and people with no assets are finding less and less opportunity.  I imagine any group whether it be blacks, hispanic, whatever that had a disproportionately lower share of assets is getting disproportionatley poorer.  Yes, buy real estate and cash-flowing assets, but next time you are complaining about a kid having their stupid transgender studies loan paid off be considerate of the fact this kid does not have the opportunities of the generations before him.  And as mighty and righteous as you are maybe don't lecture these millennials quite as much about how hard you had it and all the jobs you had when you were 12 years old, they didn't invent helicopter parenting they are the victims of it. 

https://www.dailymail.co.uk/ne...

[Scott Trench]

I believe that this data is about 8 years out of date. Millennial wealth has been skyrocketing, especially in the last few years. And, I believe Millennials are in great position to benefit from the economic realities that are ahead of us (in a relative sense). 

Millennials are benefitting disproportionately from the great resignation. Millenial's net worth has doubled since the start of the pandemic.

Lower asset values mean that higher millennial paychecks buy a greater share of GDP per capita. 

Fed policy of easy money ballooned asset values for the older generations over the past 10 years. That's coming to an end and was the real insidious evil that kept millennials down and ballooned inequality. Jerome Powell will inflict pain on everyone, but millennials will be hurt the least as they are entering their prime earnings years, finally getting out of debt, and will be able to buy assets in a period of higher interest rates and lower real asset values - an economy that is more "sane" than the one we just experienced for the last 5-7 years.

 Older generations, particularly boomers, are exiting their prime earnings years. They must spend that wealth at some point. And the providers of those goods and services will be millennials. 

None of this really addresses your point, which seems to be to sympathize with student loan forgiveness. I think that's a tricky issue. I think it's great for the folks who receive the forgiveness, and a bit unfair to taxpayers who repaid similar loans or who did not receive a college education. I don't think people will ever agree on this one. 

One thing that I do think will be a benefit from the student loan debate, is that it seems that both sides can clearly agree that student loans are inflicting terrible damage on millions of individuals and society at large. 

We need to stop giving them out. And significantly reform them. If we care about this problem enough to spend $300B to forgive debts for current borrowers, surely we care enough about the next generation to prevent them from taking on unreasonable student loan debt the next time around?

My vote:

1) End all federal student loan programs, privatizing the student loan market 

2) Establish usury protections for borrowers (can't allow a 17/18 year old to get completely swindled as a "welcome to adulthood...") 

3) Allow student loans to be discharged in bankruptcy. Eliminate that exemption. 

Within a few years, or perhaps overnight, the 80/20 of the absurdities in higher education would be eliminated. Tuition would plummet, worthless degrees would cease to exist (because no sane lender is giving an 18 year old $100K to study "fashion design" if that student can declare bankruptcy), colleges would eliminate the focus on "experience" classes would be harder, tens or hundreds of thousands of administrative positions at colleges would be eliminated, and ROI would be carefully considered by students, parents, lenders, and colleges.