Young people are smothered in low pay, student loans and debt working 50-80 hours a week just to keep the lights on. But hey, they drink coffee with their avocado toast and don't vote in large blocks, so fuck those kids. And if these kids have to live in a house with eight roommates, well that is the world we live in. Not like they could afford a house, or their own apartment if they are anywhere the jobs are. So they are stuck in place unless they get with a startup and hit the IPO lottery. How many people in their 20's are saving, fuck retirement accounts I mean saving for anything? And if they get sick? Not like we have a functional health care system.
Mom and dad are trying to not lose a job and have to look for work competing with 20-30 year olds willing to work for scraps so they don't default on loans. Mom and dad would LOVE to move, but in this market they cannot afford the new mortgage and (so they are told) there are no good jobs in the middle of the country where they could afford to buy a very nice house on a plot of land and work 40 hours a week and have a life. Mom and dad are looking at Retirement and wondering if they are going to do as well as their parents. If these couples are still together and not fucked over by divorce, family breakup or any of the other incidental threats to their finances, they are throwing as much cash s they can at the stock market hoping eternal 10-14% gains will save them.
Grandma and Grandpa sit on their fat fucking asses watching Fox News et al, complaining about all those entitled young people while, and this is the kicker here, sucking down all the available entitlement money. Social Security and Medicare/Medicaid are 2/3 the US federal budget with the military most of the rest. The kids have $1.6 Trillion in debt because a corollary of the Southern Strategy was lock in the old people vote and get them to vote R. These old people can't move because if they have any savings, they are spending that money on trivialities and either have a loan from 25 years ago or a house paid off in full and no mortgage payments. Nobody on a fixed income with a low/zero house payment is going to move, not now not unless they are forced out by health etc. The smart old fucks are buying houses and apartments and renting them out to the eight kids above and making enough money for taxes and upkeep while building the equity that their grand-kids should be harvesting. Then they show up at planning meeting and scream NIMBY when new housing is proposed because that might lower their property values and the house is the only thing they have of value. People like my parents are stuck because there is no way they can move, even with the SSI, free healthcare and union pensions they enjoy which brings in MORE MONEY A YEAR THAN I MAKE WORKING and I make well over median. Their generation so epicly screwed the housing market that they tanked the economy in 2008, and now all three generations are punching the tar baby so hard the whole thing is teetering. And nobody wants to stick their neck out and suggest changes that might set the tar on fire.
If we had a functional government, there may be a way to get everyone to back off, slowly implement some reforms, and soften the pain of unraveling this mess. I'm not for the student loan forgiveness plans, I'd rather use that money to expand medicare into a "everyone can get in" plan which will help more people and do more good to the economy. Housing is broken in the areas like California where the breaking point is still not reached; Texas, Florida and even Arizona are growing so fast that I think they are next on the agenda. The reality that I fear is that the sneeze that starts the stampede will make 2008 look like a minor blip. We have three generations that are for the most part stuck in place with no mobility. The wealth inequality is becoming more of a generational and geography issue where the big, brutal hits are going to be on the young and the coasts. Those of us not on the coasts are going to do better only because things are not so out of tilt here. Housing in town is growing 3-8% a year instead of the 40% in spots elsewhere in the country and you can still buy a house on a blue collar salary. Add in there are fewer tech and other outsourcable jobs and industries here that can be slashed in exchange for unemployment checks and "retraining" help.
All the charts in the world, all the think tanks are all dancing around the generational issue. And THAT is why there is going to be a really, REALLY big recession. Soon. Maybe. Eventually.