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Generation Z is unprecedentedly rich

35 pointsby rustooabout 1 year ago

18 comments

toberoniabout 1 year ago
How much buying power does this income provide for goods &amp; services that the younger generation wants&#x2F;needs to buy?<p>For example: Over the last decades housing prices, college tuition &amp; stock prices have significantly outpaced the average inflation rate. Older generations could buy up these assets at a discount (at least compared to Millennials &amp; Gen Z).
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sokoloffabout 1 year ago
&gt; Americans aged between 15 and 24 spend just 38 minutes a day socialising in person on average, down from almost an hour in the 2000s<p>I’m definitely on the introverted side, but I (Gen X) feel like I socialized in-person way, way more than 7 hours per week in my teens and early 20s and feel that was entirely typical.<p>By the 2000s, was under an hour per day typical? Most of that was pre-smartphone.
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dpflanabout 1 year ago
What is the &quot;wealth&quot; they have? I&#x27;m not clear on this: is it the fact that wages are rising and the workforce age is favoring Gen Z population? What is the richness?
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ArtTimeInvestorabout 1 year ago
I was surprised that the article talks about employment.<p>I expected it to be about the assets they hold.<p>The Nasdaq increased more than 5 fold over the last 10 years and more than 10 fold over the last 20 years.<p>If parents of Gen Z gave their children $100k and taught them portfolio management, most of them could probably consider retiring without ever working for somebody else.
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xystabout 1 year ago
Seems this article hand waves the increased cost of living, education, and inflated wages.<p>Adjust for inflation and this generation will no longer appear rich.<p>Also, this article cites there are “6000 Zoomer chief executives”. I wonder what it’s like to have a 20 yr old as a CEO.<p>All my bosses&#x2F;superiors&#x2F;ceos have been decrepit old fools that need to be put out to pasture.<p>Maybe it’s the same thing except a having a heightened or elevated sense of arrogance. High risk tendencies, and maybe their anxiety runs the company. I would hope they are more calculating though.
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pixelpoetabout 1 year ago
Man, millennials really got screwed by the avocado toast.
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nokeyaabout 1 year ago
If we are so rich why we can&#x27;t afford anything?
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terramexabout 1 year ago
<a href="https:&#x2F;&#x2F;archive.ph&#x2F;62rUw" rel="nofollow">https:&#x2F;&#x2F;archive.ph&#x2F;62rUw</a>
tristorabout 1 year ago
For an article in a magazine called “The Economist” you would think they’d know that wealth is net worth based on capital assets and cash reserves, not your income. The fact that hourly wages are rising doesn’t matter because costs are also up in equal or higher proportion due to inflation. The premise of this article is basically untrue on its face and more so when you account for the housing affordability crisis.<p>That said, this article is probably still true for some kids. I put together a custodial IRA for my teenager funded with a dollar-for-dollar match to her gross earnings while she’s underage and she’s a prolific saver too. She’ll graduate high school with a higher net worth than the American median, but that’s mostly because of the typical American debt load more so than the raw amount.<p>Since we are directly paying for her college we hope that this will guarantee her a decent retirement some day, which so many of her generation will likely never have.<p>Also for commenters saying Gen Z is the kids of Gen X, that’s probably true but many of us are older millennials (xennials) too. I am not quite 40 yet and my kiddo turns 18 this year. The oldest millennials are 43 right now.
mseepgoodabout 1 year ago
What&#x27;s the appeal of snacks that leave remnants on the fingers?
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Dunedanabout 1 year ago
IMO this it just a very bad hit piece. It&#x27;s just picking whatever fits its narrative.<p>&gt; The average 25-year-old Gen Zer has an annual household income of over $40,000, more than 50% above the average baby-boomer at the same age.<p>Might be worth mentioning that this isn&#x27;t inflation corrected. Oh and of course averages don&#x27;t tell the whole story.<p>&gt; Gen Z’s economic power was on display at a recent concert by Ms Rodrigo in New York. The mostly female teenagers and 20-somethings in attendance had paid hundreds of dollars for a ticket. Queues for merchandise stalls, selling $50 t-shirts, stretched around the arena.<p>That says literally nothing about the economic power of a whole generation.<p>&gt; In 2022 Americans under 25 spent 43% of their post-tax income on housing and education, including interest on debt from college—slightly below the average for under-25s from 1989 to 2019.<p>Aren&#x27;t way more Americans up to 25 still living with their parents, compared to previous generations, because of the high housing costs? I imagine living with your parents is much cheaper than any other housing option.<p>&gt; Their home-ownership rates are higher than millennials at the same age.<p>Well, millennials had a worse start for sure, however what about home-ownership of other generations at that age?<p>&gt; Gen Zers are also producing fewer innovations. According to Russell Funk of the University of Minnesota, young people are less likely to file patents than they were in the recent past.<p>Fresh off the press this got apparently debunked: <a href="https:&#x2F;&#x2F;www.unibas.ch&#x2F;en&#x2F;News-Events&#x2F;News&#x2F;Uni-Research&#x2F;Research-has-lost-none-of-its-innovative-drive.html" rel="nofollow">https:&#x2F;&#x2F;www.unibas.ch&#x2F;en&#x2F;News-Events&#x2F;News&#x2F;Uni-Research&#x2F;Resea...</a><p>I could go on.
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Michelangelo11about 1 year ago
This is really intellectually bankrupt, whether on purpose or not.<p>The main issue is that they&#x27;re basing a large part of their claims on ZIRP-era data, but the economy (obviously) changed completely once the 14-year gush of money was turned off in summer 2022. For example, &quot;Quiet quitting&quot;, which the article cites to support its argument, was only possible in the peak ZIRP period 2020-2022 and today is unimaginable. Really, I would expect The Economist of all outlets to grasp this.<p>Also, the article is very light on specifics, e.g. it says &quot;Their home-ownership rates are higher than millennials at the same age. They also save more post-tax income than youngsters did in the 1980s and 1990s.&quot; OK, but how much? If it&#x27;s a few percentage points or less, that&#x27;s largely noise, but if it&#x27;s a double-digit amount, it&#x27;s a genuine difference. As it is, we don&#x27;t know, so the &quot;unprecedentedly rich&quot; claim in the headline is unsubstantiated.<p>Besides this, a bunch of areas related to inflation and prices are handled sloppily. For example, the article says Zoomers are paying about the same percentage of income as previous generations for housing and education, but it doesn&#x27;t look at the quality of either -- I wouldn&#x27;t be surprised if Zoomers are getting less for their money (less square feet of housing, degrees with worse job prospects, etc.). Also, as someone who lives in a southern European country, I can tell you that plummeting unemployment numbers in places like this (they cite Spain&#x27;s and Greece&#x27;s in a graph) are due to people emigrating en masse in search of high-paying, year-round jobs.<p>All in all, my biggest takeaway from this article is to confirm my impression that The Economist today is intellectually sloppy and baldly makes arguments with weak or no evidence in support. I&#x27;d gotten that impression after having subscribed for a few weeks not long ago, and this article, which I might have written off as a fluke otherwise, cemented it.
drewcooabout 1 year ago
We don&#x27;t measures wealth in availability of fresh fruit, even though empires fought wars over fruit a little over a century ago.<p>This article makes the same mistake.
1vuio0pswjnm7about 1 year ago
&quot;Back then pundits obsessed over ultra-young tech founders, such as Mark Zuckerberg (Facebook), Patrick Collison (Stripe) and Evan Spiegel (Snapchat). Today, by contrast, less than 0.5% on the Forbes list are Zoomers.&quot;<p>Pundits should be ignored. Perhaps we will now see auto-generated pundit BS. Because &quot;AI&quot; is trained an old version of the web where people believed this pundit garbage.
EricRieseabout 1 year ago
&gt; In Britain and America Gen Zers are avoiding the humanities, and are going instead for more obviously useful things like economics and engineering.<p>LOL
TheOtherHobbesabout 1 year ago
Denial of reality is one of the foundations of neoliberalism.<p>Often it seems vaguely plausible. But sometimes - as here - it&#x27;s just silly.
recursivedoubtsabout 1 year ago
<a href="https:&#x2F;&#x2F;archive.is&#x2F;62rUw" rel="nofollow">https:&#x2F;&#x2F;archive.is&#x2F;62rUw</a><p>garbage article as one would expect from the economist, gen z is slightly ahead of millenials and gen x if you use the government inflation and unemployment statistics<p>the fact their graphs show boomers as poorer than X, millenials and Z at the same age tells you all you need to know
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Havocabout 1 year ago
That’s utter bullshit to the point where I suspect ulterior motive.<p>For “rich” you’d need to look at wealth not employment %.<p>The younger generations are miles behind previous generations on metrics such as age constant net wealth. eg look at the chart in this and contrast that with the economists take:<p><a href="https:&#x2F;&#x2F;www.google.com&#x2F;amp&#x2F;s&#x2F;www.dailymail.co.uk&#x2F;news&#x2F;article-11160535&#x2F;amp&#x2F;Millennials-poorest-generation-People-born-1981-1996-average-wealth.html" rel="nofollow">https:&#x2F;&#x2F;www.google.com&#x2F;amp&#x2F;s&#x2F;www.dailymail.co.uk&#x2F;news&#x2F;articl...</a><p>(Crappy amp link sorry - on mobile) it’s from page 31 here<p><a href="https:&#x2F;&#x2F;www.nber.org&#x2F;system&#x2F;files&#x2F;working_papers&#x2F;w27123&#x2F;w27123.pdf" rel="nofollow">https:&#x2F;&#x2F;www.nber.org&#x2F;system&#x2F;files&#x2F;working_papers&#x2F;w27123&#x2F;w271...</a>
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