MIT Technology Review: Keynes was wrong. Gen Z will have it worse.

[Anonymous]

#4195

MIT Technology Review: Keynes was wrong. Gen Z will have it worse..
https://www.technologyreview.com/s/614892/keynes-was-wrong-gen-z-will-have-it-worse/

[Sean Hyman]

#4223

There’s been more financial mismanagement in recent generations, more debt accumulated, less in inheritances passed on (and many more inheritances destroyed or watered down through a much higher divorce rate). On top of that, wage growth hasn’t been what it was in the past and economic growth is much slower these days, when compared with the pace in the past.

That all shifted a lot arguably somewhere in the 1970’s to 80’s. Since then, standards of living really just haven’t been the same.

[Anonymous]

#4643

You make some great points here, Sean. I have not read Karl Marx, John Maynard Keyes, or Milton Friedman enough to really know if people are victims of themselves or the economic system. The truth is perhaps a combination of factors. Thanks for commenting!

[Sean Hyman]

#4708

It’s both. However, money was backed by gold, then the Fed was created and diluted purchasing power. Additionally, wages haven’t kept up with inflation over time and pensions have largely gone away. Before, people didn’t have to plan for their own retirement. Today, they do. Formerly, they could choose a big company and choose to work there 30 years. Today, you get fired if you start making too much money or get above 50…they want to trade you in for two 25’s that still (combined) make less than you. Lots of headwinds facing people after the 1970’s/80’s that didn’t happen formerly.

HOWEVER, people are much worse at saving today than they were back in the day too.

Friedman is the only one worth reading.

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