America's Failed Economic Recovery

Social mobility continues to plummet in America while increasing in what the Republicans like to call "Old Europe."  Who would have ever thought that Europe with its former rigid class systems and hereditary titles would provide more promise than America and the so-called American dream which is fading for many and those in the Millennial Generation in particular.  What's also amazing is that those pushing for a cruel oligarchy in this country - e.g. the Koch brothers and much of the GOP - seem to have forgotten that throughout history sooner or later the masses have revolted - sometimes violently - against oligarchs who have been suffused with greed and mistreated the rest of society.  A main editorial in the New York Times looks at how the future prospects for our younger generations is shockingly fading.  One has to wonder when the reckoning will eventually come.  Here are highlights:

The official line is clear: The worst is over, and recovery has given way to expansion.

But that’s not the whole story. Economic gains so far have mostly benefited those at the top of the income and wealth ladder. Worse, future growth is likely to be lopsided, because the foundation for broad prosperity is arguably the weakest it has been since World War II.

Take, for example, Americans age 25 to 34, the leading edge of the so-called millennials, the generation born in the 1980s and 1990s. They are worse off than Gen Xers (born from the mid-1960s to the late-1970s) were at that age and the baby boomers before them by nearly every economic measure — employment, income, student loan indebtedness, mobility, homeownership and other hallmarks of “household formation,” like moving out on their own, getting married and having children.

This group had the bad luck of entering the work force in the depressed and slow-growth years that started when the recession hit in 2007. Instead of spending the crucial early years of their work lives laying the groundwork for a solid economic future, many of them have struggled with unemployment and underemployment, and many have fallen so far behind where they would hope to be that recovering lost ground may well be impossible.

According to the latest census data, nearly 16 percent of those in their mid-20s to mid-30s were in poverty in 2012, compared with just above 10 percent of Gen Xers in 2000 and baby boomers in 1980. Nearly 14 percent of that age group were living with their parents in 2013, a higher percentage than in previous generations. And of those living at home, 43 percent (2.5 million people) would be counted as being in poverty if they were on their own.
Some of the trends in the latest data were evident before the recession, especially stagnating wages, delayed marriage and later childbearing. But the poor economy has intensified those conditions. For instance, in a study by the Pew Research Center of the entire millennial generation, 74 percent were unmarried; many of them said they wanted to marry but lacked the economic wherewithal.

What is shocking is that despite the known danger and despite the prolonged bad economy, more government resources have not been used to prevent and reverse such a huge waste of human capital. Instead, public resources for job creation and even for unemployment benefits have been too little and too late, if available at all.

Another shocker is that those in the 25-to-34 age group are the best educated cohort in American history, with more than a third having a bachelor’s degree or higher. Education is important. But clearly, education alone does not create jobs and opportunities that lead to prosperity. For that, a fair and functional economy is needed — one in which the government plays a robust role, alongside consumers and businesses, to promote full employment and to ensure a just distribution of gains.

Younger millennials are not appreciably better off than their older peers, though they have not yet lost as much ground. At the other end of the spectrum, many older Americans who lost jobs and assets in the recession also face an uncertain future.

Certain sectors of the economy, especially the financial markets, are indeed turning a corner. But true prosperity is impossible when the productive potential of young adults is being squandered.

Just as the GOP is courting long term political suicide by courting declining numbers of aging, angry white voters, so too are they setting the stage for a potential overthrow of the system they claim to honor.