Millennials are doing far worse financially than generations before them, with student loans, rising rents and higher health care costs pushing the average net worth below $8,000, a new study shows.
The net worth of Americans aged 18 to 35 has dropped 34 percent since 1996, according to research released Thursday by Deloitte, the accounting and professional services giant. This demographic is paying more for education and such basics as food and transportation while incomes have largely flatlined.
“The vast majority of consumers are under tremendous financial pressure,” said Kasey M. Lobaugh, Deloitte’s chief retail innovation officer and lead author of the study. “That is particularly true for low-income Americans and millennials.”
The growing gap between the nation’s wealthiest residents and everybody else, he said, is affecting the way consumers spend.
Education expenses have climbed 65 percent in the past decade. Food costs have jumped 26 percent, health care is up 21 percent, housing jumped 16 percent and transportation rose 11 percent. And there are now expenses that most consumers didn’t have to account for 20 years ago, including smartphones and data plans.
Today’s 20- and 30-somethings spend about 17 percent of their incomes on education, health care and rent, compared with 12 percent a decade ago, the study found. Discretionary spending, which includes dining out, alcohol and furniture, has remained largely flat, at about 11 percent of total income.
“Only 20 percent of consumers were meaningfully better off in 2017 than they were in 2007, with precious little income left to spend on discretionary retail,” the study found.
The findings, researchers say, “debunk many conventional wisdoms about the new-age consumer.” Millennials, they contend, are putting off home-buying and marriage not because they want to, but because rising costs are making it difficult for them to afford down payments and weddings.
“The narrative out there is that millennials are ruining everything, from breakfast cereal to weddings, but what matters to consumers today isn’t much different than it was 50 years ago,” Lobaugh said. “Generally speaking, there have not been dramatic changes in how consumers spend their money.”
Overall, U.S. retail spending has grown about 13 percent since 2005, to roughly $3 trillion a year, but researchers say much of that growth is tied to population growth, not consumers spending more.
In the past decade, the nation’s highest earners — households making $100,000 or more — watched their incomes rise 1,305 percent more than those in households making less than $50,000 a year.
There is one area, though, where consumers are spending less than they once did: Clothing. Shoppers are spending half as much on apparel as they did a decade ago, even as they buy more items, the study found.
Lobaugh said the reasons for that shift are both economic and cultural. Retailers are churning out cheaper clothing and selling it at lower prices as they try to compete with fast-fashion chains like H&M and Zara. At the same time, American are buying more casual and athletic wear, which tends to be cheaper than business suits and formal wear.
On the surface, water bottles as totems of consumer aspiration sound absurd: If you have access to water, you can drink it out of so many things that already exist in your home. But if you dig a little deeper, you find that these bottles sit at a crossroads of cultural and economic forces that shape Americans’ lives far beyond beverage choices. If you can understand why so many people would spend 50 bucks on a water bottle, you can understand a lot about America in 2019.
The first time I coveted a water bottle was in 2004. When I arrived as a freshman at the University of Georgia, I found that I was somehow the last person alive who didn’t own a Nalgene. The brand’s distinctive, lightweight plastic bottles had long been a cult-favorite camping accessory, but in the mid-2000s, they exploded in popularity beyond just outdoorsmen. A version with the school’s logo on it cost $16 in the bookstore, which was a little steep for me, an unemployed 18-year-old, but I bought one anyway. I wanted to be the kind of person all my new peers apparently were. Plus, it’s hot in Georgia. A nice water bottle seemed like a justifiable extravagance.
Around the same time, I remember noticing the first flares of another trend intimately related to the marketability of water bottles: athleisure. All around me, stylish young women wore colorful Nike running shorts and carried bright plastic Nalgenes to class. “With Millennials, fitness and health are themselves signals,” says Tülin Erdem, a marketing professor at NYU. “They drink more water and carry it with them, so it’s an item that becomes part of them and their self-expression.”
.. Kauss says she always knew the bottle’s appearance would be important, even though positioning something as simple as a water bottle as a luxury product was a bit of a gamble. “As I moved up in my career, I was upgrading my wardrobe, and the bottle that looked like a camping accessory really didn’t serve my purpose anymore,” she says. When she noticed fashionable New Yorkers were carrying luxe disposable plastic bottles from brands such as Evian and Fiji, she realized reusable bottles could use a makeover, too.
.. Kauss and her contemporaries struck at the right time. The importance of fitness and wellness were starting to gain a foothold in fashionable crowds, and concerns over consumer waste and plastic’s potential to leach chemicals into food and water were gaining wider attention. People wanted cute workout gear, and they wanted to drink water out of materials other than plastic. Researchers have found that the chance to be conspicuously sustainability-conscious motivates consumers, especially when the product being purchased costs more than its less-green counterparts.
.. For a lot of people, they spark a little bit of joy in the otherwise mundane routine of work, exercise, and personal hygiene. For a generation with less expendable income than its parents’, a nice bottle pays for itself with a month of consistent use and lets you feel like you’re being proactive about your health and the environment.
Trust and cooperation are not standard in our organizations and yet we know they should be. There are two attributes that every single leader has the opportunity to possess that will help them create the types of organizations we would be proud to call our own. Those two attributes are EMPATHY & PERSPECTIVE.
Maximizing shareholder value is like a coach prioritizing the fans over the players.
When asked recently who Republicans should fear most in the 2020 presidential campaign, two prominent GOP figures, both women speaking independently of each other, gave the same response: Sen. Amy Klobuchar of Minnesota.
A third Republican, a male, asked which kind of candidate Democrats should want, replied: “They need a boring white guy from the Midwest.”
So, there you have it: The dream ticket of Amy Klobuchar and Sen. Sherrod Brown of Ohio. Case closed, cancel the primaries, on to the general election.
So if all that creates an opportunity for Democrats in 2020, here’s their dilemma: Can they pick a candidate who can blend the party’s conflicting impulses?
This may seem a long ways off, but the reality is that most Democrats thinking of running for president—and the number probably runs into the 20s—plan to make their decision over the next several weeks, so they can move out starting in early 2019.
.. The winning lottery ticket, of course, goes to somebody who can appeal to both. And that’s why Ms. Klobuchar’s name—and profile—attract attention. She’s a woman, obviously, which is important at a time when newly energized women are a growing force within the party. She pleased her party base in the hearings on the Supreme Court nomination of Brett Kavanaugh when she challenged him about his use of alcohol, but did so in a sufficiently calm and understated manner that she won an apology from Mr. Kavanaugh after he initially responded angrily.
.. She also won re-election this year with more than 60% of the vote in the one state Trump forces lost in 2016 but think they have a legitimate chance to flip their way in 2020.
.. The question is whether she or anyone can put together a policy agenda that pleases both party liberals, who are pushing for
- a Medicare-for-all health system,
- the demise of the Immigration and Customs Enforcement system and an
- aggressive new climate-change action plan, and more moderate Midwestern voters, who may be scared off by all of those things.
Ms. Klobuchar’s policy priorities may suggest a path. To address health care, the top priority of Democratic voters, she advocates a step-by-step approach, one that seeks to
- drive down prescription drug costs by opening the door to less-expensive drugs from Canada,
- protect and improve the Affordable Care Act, and
- expand health coverage by considering such steps as allowing more Americans to buy into the Medicare system.
.. She’s talked of a push to improve American infrastructure that would include expanding rural Americans’ access to broadband service, paying for it by rolling back some—though not all—of the tax cuts Republicans passed last year. She pushes for more vigorous antitrust enforcement, more protections for privacy and steps to curb undisclosed money in politics
.. For his part, Sen. Brown, a liberal who this year won Ohio as it otherwise drifts Republican, offers a working-class-friendly agenda that combines progressive impulses for government activism to drive up wages with Trumpian skepticism about trade deals and corporate outsourcing.
Usually an essay begins with an argument, for me. Not a linear argument, in the sense of a line of reasoning, but an argument as in two people or groups shouting at each other, but in my head. The dumber the disagreement, the more I want to kind of explode it and discover what it covers up, find better language for what life is really like. In this case, the disagreement was narcissism is the opposite of human—i.e., a total lack of warmth, empathy, “human” feeling—versus narcissism is everybody. Usually, what’s next is scene, where the language of the essay gets discovered, and the idea. Often an editor helps to lay bare the structure that will let the idea happen, rather than being told to the reader.
But in this book, at least in its final version, I wasn’t working in scenes but rather channeling kinds of Internet and academic language that aren’t really my own, and kind of sculpting that language like material. So there is so much telling, summary, which is painful for me to read. There wasn’t a reasonable progression of ideas, but on one axis, a progression of kinds of language, and then on the other, a slow panning out from the trapped, limited perspective of fearful, solitary, listicle-fueled diagnosis to a broader view, and poetry.
.. The word narcissism was everywhere—this diagnosis of everyone’s ex, condemnation of the personal-essay trend, fear of the coming selfie apocalypse.
.. I had been wondering why people who seem evil to us, or who break up with us or just disagree with us entirely, can begin to seem “empty” and “fake” and uncanny, even inhuman. And as a nonfiction writer, and a reader, I’m always puzzling over the mysteries of ethos, when and why we trust and distrust whom we do, in life and in writing.
.. I suspect some of the things we condemn as narcissistic in others might be more accurately defined as how everyone has to perform—in capitalism, or online—doing things formerly considered vain, things we feel guilty or anxious about.
.. Like the journalist she writes about, and the murderer, too, the narcissist is bad because he fakes an “I,” rather than being an “I,” he charms you rather than being genuinely interested in you.
.. Arguably, nonfiction writers always fake an “I,” even if we don’t use the word, creating ethos, so the reader trusts the text. Maybe anyone who writes does, any Facebook poster does. But an “I” can feel generous or self-absorbed, to the reader, and so can a more “objective” voice. Maybe the ease with which we dismiss one another as narcissists these days is partly a symptom of how much it’s changed, and speeded up, the way that we determine how and when to trust writers, now that almost everyone’s writing publicly all day long online.
.. This question of when we trust texts is related, in my mind at least, to this everyday problem of when and why we judge others as so self-absorbed as to be beyond empathy, and to write them off or turn away from them. Of course, sometimes we have to separate from people. Sometimes maybe even judge others as selfish. But if we believe that, on the whole, others are becoming more selfish and self-absorbed than ever before, how willing would we be to trust each other enough to work on the great injustices, the inequality and environmental catastrophes of our time? Is the well-being of future humans even worth fighting for, if all millennials are assholes?
.. Your various chapters, as I read them, follow a surprising, slyly circular design—you often start with an observation that looks true, even self-evident, and then complicate it, such that the opposite of that initial observation is ultimately just as compelling, maybe even more true. How did you arrive at that shape? Did you see that circular design as echoing the way narcissism operates, or perhaps is said to operate?
.. And fear of narcissism. “He didn’t ask me a single question about myself. What a narcissist.” This is René Girard’s idea, that narcissism and fear of narcissism mirror each other.
.. People started dropping the word casually into conversation when they were around me, as if they were worried I thought they were one, and so they wanted to show me they knew what the word meant. I started wanting to exorcise this fear, so I think, I hope, the circular design lets the reader alternately suspect others and herself and me of the disorder until she’s just exhausted and stops worrying so much. Anyone who would pick up a book with this title is probably worrying too much.
.. E. M. Cioran’s great phrase—“thinking against oneself.” The Selfishness of Others is always thinking against, or away from, something you just wrote. I’m remembering a complex sequence early on that at once recognizes and deflects what you call your “personal stake” in the topic.
.. a complex sequence early on that at once recognizes and deflects what you call your “personal stake” in the topic. As you remark—“I’m an essayist; I write the word I all day long, and I’m nervous when I do. More than anything, I don’t want you to think me self-absorbed. So I will try to take up the topic of the narcissism epidemic objectively. If using the word I turns out to be a symptom of narcissism, you won’t hear from me again.”
.. I was joking! But yeah, the experiment was initially to outlaw use of the “I” for most of the book, and then have it turn into memoir, to kind of investigate why we read memoir, what we want from writing about the “I.” The last third was memoir, in the original draft. Anyway, yes, to take on this topic is probably grandiose, if that’s what you’re saying. It was supposed to be an even smaller book than it is, and my editors persuaded me this was too much.
.. I tried to keep a sense of an uncanny “I” moving under the text, without ever using the word, but it’s not really “me,” it’s fraudulent. At least until the last few pages. For example I’ve never had a boyfriend who I feared was a narcissist.
.. There is so much scholarship on the history of psychology and narcissism, and even in my reading I only skimmed the surface.
.. what do you think is our most dangerous misconception when we talk about narcissism?
.. One way to view narcissism is that the diagnosis is a symptom of a privileged portion of civilization—those of us who have time to go to therapy and sit online reading how to diagnose others—turning on itself, “thinking against itself,” maybe, but kind of blaming the problem always on someone else.
.. We’re called upon to curate our lives, share them, focus on ourselves and self-brand and compete for money and stay mentally healthy and say positive affirmations to raise our self-esteem, and then narcissism is the word we use to condemn others who do exactly these things.
.. And because the word names a lack of empathy, using it can create a certain narcissism of decency, I think, where we fetishize our own empathy. It feels new, but it’s also the oldest problem of the self. It’s tragic or it’s comic. Shakespeare was obsessed with it and David Foster Wallace exhausted it, to the extent that there was probably no need to write about it.
Much of the Evangelical Industrial Complex has been created to make Christianity relevant, acceptable, and attractive to our consumer culture. Author and missional expert, Michael Frost, says this is a mistake. Instead, we should be emphasizing our faith’s weirdness and call more Christians to be eccentric—literally “off center.” Also this week: Phil and Skye take on “The Good Place,” a TV show about heaven without God or religion, the UK’s Supreme Court rules in favor of a Christian baker, and (fake) butt news from a Hawaiian seal hospital.
In his view, Gen X is the last generation with memories of an adulthood unsullied by technology, helicopter parenting, full-blown leftism in academia, and other such forces that have made Millennials a world-destroying force.
.. “Before Generation X gets made redundant, I’d like to see us make a last stand,” he proclaims.
.. but surely those young people who increasingly come from non-traditional families are not all getting “helicoptered.” And academic leftism took root in the academia decades ago, thanks to the Boomers (who hardly escape this book blameless; Hennessey considers them and Millennials to be “cut from the same cloth”).
.. “Your generational affiliation provides you with the grammar, syntax, and the context necessary to understand and interpret events,”
.. it is not Millennials themselves from whom America needs saving. It is, rather, the forces of technology, as embodied by the tech overlords of Silicon Valley, who most threaten America.
.. serious explorations of how the more everyday use of tech is changing us: shortened attention spans, reduced human interaction, decreased intelligence. And he leavens it all with a recollection of his tech-free childhood, personalizing his jeremiad, even if there might be some romanticizing nostalgia involved.
.. Hennessey tries to render us willing accomplices to the Silicon Valley “conspiracy”
.. “Encouraged by Silicon Valley’s string of tangible technological successes, not to mention its utopian promises, few millennials will admit a downside to moving every form of human interaction onto the web or disrupting every established way of doing business,” he writes. He calls us, variously, “digital natives,” “digital junkies,” and “digital Maoists.” We are essentially the shock troops of the Digital Age.
.. Millennials are both obsessed by technology and to blame for the woes it causes, Hennessey contends. That conflation, however, is a tactical error, and arguably a logical one as well. Yes, Millennials have ended up — again, by sheer happenstance — as early adopters of technology that has become widely available. At best, though, this makes us second-order antagonists. Or perhaps, I suggest at the risk of indulging in stereotypes about my generation, might this make us not villains but rather victims?
.. Are not the real villains the tech overlords who seek to bestride our economy and refashion it in their own image? Yes, many of them are Millennials, such as Facebook CEO Mark Zuckerberg. But others belong to different generations: Apple CEO Tim Cook is a Baby Boomer; Google founders Larry Page and Sergey Brin are both Gen X-ers.
.. one wonders whether he really wanted to write a neo-Luddite tract but decided (or was forced to decide), for whatever reason, to present his argument in its chosen form. For the struggle against technology cuts across generational lines.