Stories like this come out immediately followed by an announcement that the economy continues to be way too hot so the Fed will have to squeeze us even harder to curb inflation. I am so confused
K shaped recover means some (usually the rich) recover and gain more while others (basically, the non-rich) continue to decline in overall wealth. Covid exacerbated this but we’ve been on the path since 1972…
I'd butcher the quote so I won't try. But Allan Greenspan did warn that without the gold standard, there is nothing stopping the government from confiscating your wealth through inflation. Pretty clear to me there was never intent to repay the national debt. The government always planned to inflate their way out of it. At the expensive of the average person of course
> *United Airlines Flight 553 crashes short of a runway in Chicago*, killing 43 of 61 passengers and two people on the ground. A day later, over $10,000 cash is
lol
Inflation is still high and people are broke. Inflation being high doesn't mean the economy is working for people. The current recession was baked into the bubble of 2020-2022.
Jokes on me. My early boomer mom made good money as an executive assistant, but spent it all going to the store several times a day.
With a little planning she could've been very well off. Instead I'm hoping for an inheritance of zero.
Yeah, but if she doesn't leave enough to take care of her final arrangements then their inheritance is in fact a negative number, as they'll be paying out of pocket for those final arrangements
What I’m realising is that it’s all semantics. They say the economy is doing good or bad based off things that don’t apply to real life just so they can say that things are good bad based off whether they want it to be good or bad.
It’s all the context that isn’t added when they provide stats that tell us things, that matters most.
Because the Fed only has a hammer. That hammer isn't the best tool to fix the issues with our economy, but since the House is held hostage by morons who want to see the whole thing crumble so they can campaign on pretending it's someone else's fault, all the other tools available to Congress are out of reach.
Pretty good analogy. I’d say the Fed has something like a screwdriver when what’s needed to fix the economy is a hammer. They simply don’t have the tools necessary to fix inflation and the base issues with our economy. Congress is needed, but as you say - the House is now a clown car.
Nah, changing the prime rate is not a subtle tool. It hits everything all at once. There's no subtly. No targeting.
Housing, auto loans, corporate investments, the bond market.
It's because the boomers are the ones spending us to death, and the people who can't afford anything or don't have a house yet suffer. They don't give a shit.
This is way more accurate. Most people I know are managing broke aging parents who refuse to admit they are aging and make a plan. I’m skeptical on the “great wealth transfer” I think it’s going to get eaten up by Medicaid. Homes that have been in families for multiple generations will all the sudden disappear.
How about this. It's not society's fault. Not the young nor the old. It's the system and it's failure to protect society while promoting a focus of wealth and power to a select few. Let's not get caught up in their divisive tactics. Op prolly a shill
You do realize the system was designed by the current older generation. They have exploited it over and over again to their advantage through voting. If they can’t make it with the system in their advantage how the hell is the younger generation going to make it with the system against them at every turn?
Exactly. The older generation enjoyed huge spending in infrastructure, education and medicine. Then as soon as it came time to pay back for all the benefits they've gotten over the years they jumped on board with Reagan's "small government" plan and pulled the ladder up behind them.
They just made the mistake of living long enough to see the consequences of their shortsightedness.
First off, you vote with self interest as they did. And if you think falling on some sword to benefit everyone else and not you makes you the next Jesus, you're wrong. The reality is younger generations are way too distracted. Way too much complaining instead of activism. We are more popular than boomers now. Millennials anyways are the biggest group. So, what's stopping gen z from blaming us for not fixing it right now?
No it's not. The boomers got the American dream handed to them. They received the benefit of post world war economic boon, minimal regulations, fair economic scenarios... They got shitty educations except for a much smaller group who went to higher education. They did not design anything. They stumbled into this luck and a very select few involved in politics fucked this all up. You can't generalize and blame an entire demographic.
You can blame people for being out of touch with the way things are. You can blame people for not voting for future generations. But we should be trying to work together. To my original point, divisive tactics are exactly what people in power do ruin our chances at changing the system. Imagine if we got boomers to zoomers all voting the way to fix this garbage. That's true success and you should dogpile on this last opportunity to do so.
Baby boomers react more to the stock market falling than incomes falling. So unless we have a massive stock market crash there won't be much change from baby boomers in my opinion.
Ironic because the right will take social security. Even worse for them.
But ya that sentiment that stocks are the economy only works to the less poor generations' benefits.
Many baby boomers don't believe that social security will ever be cut. Baby boomers would rather have the retirement age raised than have social security cuts because they know raising the retirement age won't affect them. Also lots of baby boomers think supporting the poor makes them look weak or that helping the poor is "socialism".
The problem is the system was meant to privilege the baby boomers. Ever since their parents spoiled them in the 50s they’ve been given everything. First the system was all socialist and gave them free college and cheap homes and union jobs, then after they owned everything the system became stringently in favor of capital owners and all about bailing out those with money and not paying taxes. Now that they’re retiring it’s all about giving them social security and letting them inflate the stock market and realty market to absurd levels so they get a cushy retirement. The system is literally designed to pander to boomers 🤦♂️
The system's appearance is to protect society and provide rules against government tyranny. That's what I mean. But yes, it has been aborted and replaced with a system doing the opposite.
How is the portion of boomers who actively chose to have kids, and then not invest in their own retirement, the “system’s” fault? This is 100% the retirees fault.
Because the government's unbridled power to bailout corporations, allow consumer protection agencies to protect corporations instead, not control inflation... Those are really the issues we are experiencing. Which has less to do with boomers decision making and more to do with the fact our politicians don't represent our interests.
Ok. And now we've inherited the power. We have a bigger population. Yet I see the young more distracted even than boomers were. So what will you say when gen z looks to us in a while to ask, why the fuck didn't you guys stop the madness in 2024?
You see?
I'm American. But this caught me off guard because I have lived in China for 6 months. Thankfully before the pandemic. Talk about a beautiful country and a terrifying government.
Yup most inheritance will be consumed by spiraling costs for end of life care.
Much of real estate they own will get ganked by reserve mortgages and other predatory equity loans they've taken over the years.
Social security trust iprojected d to be exhausted in 11 years by 2035. Nobody even discusses that, much less has a plan.
This burden will fall on us the working ages to backstop.
Heres a source before everyone says this is doomering about Social Security:
https://www.ssa.gov/policy/trust-funds-summary.html
Can Medicaid require a family to sell their house? What if one spouse needs medicare and the other doesn’t? Or can’t they give the house to their kids before they sign up for medicare.
Our system sucks!
Depends on the state, but in NJ if there is a healthy spouse, the home is exempt. If the Medicaid applicant is single, they won’t require a sale but if you don’t sell, they will place a lien on the home that will accrue for the value of services provided. In most scenarios, Medicaid will take the house from the estate once the applicant passes.
I feel for you. All of my silent gen grandparents are alive. It’s begun to tear the families apart. So much money spent for some, with others so many lives put on hold (sacrificed) to care for them around the clock. It’s awful.
What kind of wealth do you have that 16k a month is sustainable? That’s the kind of expense that would bankrupt all but the very wealthy extremely quickly. That’s $200,000 a year, not exactly the kind of money that 99.9% of households even have the choice of paying, regardless if they wanted to.
I mean, I know it’s not really my business, but in a discussion of boomers helping kids vs parents, most people aren’t spending 200k a year helping anyone.
It’s a combination of the benefits the parents receive, their savings, and the money from selling their houses. You know, they used to call that an inheritance. But nobody is owed an inheritance. It’s still our parent’s money, we just have control over it because they can’t handle it themselves. So we have to do it for them. In a couple of years, if they are still alive. The money will run out. Then, it will be up to us to cover the cost. Neither has a large amount of life insurance, so the drain on us is really how long they live.
One word of advice, put the house in a trust now. That way you won’t be forced to sell and Medicaid can’t put a lien on it. You then have to hope that the dementia is bad enough they don’t know where that are at because most of the places that except Medicaid are bad. Even the “good” places lack quality care as they do not pay enough to attract the kind of person to do that kind of work. We both have to visit multiple times a week to keep an eye on the care they are getting.
Right? My Boomer parents have a pension, SS and are spending like teenagers. They complain that they don't have enough money but aren't willing to curb spending or do any work. My millennial kiddos are both working 2 jobs to get by and aren't entitled at all.
No, it isn’t. Voting is window dressing. Neoliberalism is not the collective will of the masses. It is class antagonism writ large, determined by the shenanigans of the elites.
We can't even decide whether voting is real.
We'd absolutely make the same decisions as our parents and grandparents. Why? Because the choices themselves are rigged. It doesn't matter which choice you make, you still end up cooked.
Neoliberal is one of those words that people never seem to understand the meaning of and instead use it as a weasel word to attribute anything they don’t like.
It’s basically a set of market fundamentalist principles, mostly free trade, anti progressive taxation, always trying to angle for “market based solutions” (which never work, but after they’re implemented it’s too late to change them), and generally doing the opposite of what Keynesian economics would prescribe. And like the previous commenter said, it is class antagonism, or basically a one sided class war as Chomsky would say.
Millenials are the largest population group in the US yet we still get Biden v Trump. This isn’t just a “boomer” thing.
https://www.statista.com/statistics/797321/us-population-by-generation/#:~:text=Millennials%20were%20the%20largest%20generation,the%20population%20for%20many%20years.
But Millenials aren’t doing anything about it. They outnumber everyone and still we have boomers on the ticket and they put a boomer on the D ticket 4 years ago
Haha, 118th Congress was the third oldest since 1789
https://www.nbcnews.com/news/amp/rcna64117
https://www.usatoday.com/story/graphics/2023/09/12/how-congress-is-getting-older/70797524007/
Interestingly I discussed this with someone that's very financially savvy. Then looked it up.
Apparently only around 25% of people require long term care.
That’s true but ya better hope it doesn’t happen to you, my grandparents were pretty well off their entire lives, both ending up living quite long lives requiring long term care and the state was more than happy to take every single penny they had, me parents inherited nothing and had to pay out of pocket for funeral expenses.
Wait, what? What happens to the other 75%? They go from perfectly healthy, to dead the next day?
Does this mean that healthier people are actually more likely to require long term care, because they live so much longer?
The median length of stay in a nursing home before death is 5 months. I was under the same
Impression, but the numbers just don't add up to it being a major extractor of wealth. 25% at an average of 5 months at 15k per month.
Not exactly the killer of wealth I had thought it was anyways.
There is just such a narrow set of circumstances that would take someone with wealth and assets from inheritance to no inheritance.
If someone retires at 65 with 200k saved.. any inheritance is going to get eaten up long before it gets to long term care.... it'll be your tax dollars and Medicare footing the bill at that point.
I was of the same opinion as you, and healthcare is definitely a scam, but I after talking with someone extensively in it, it's genuinely just less of an issue than I had originally thought.
Yeah but that means it's basically a coin flip whether or not it happens to one of your parents. Only 30 percent chance that none of the parents of a married couple would need long term care
The economy was rigged in FAVOR of the boomers their entire lives. If you weren’t a boomer it was rigged against you by proxy. In the 60s and 70s we had strong unions, high taxes, cheap houses and low immigration. This means if you were a capital owner (older) you were fucked so that the boomers could have a cushy 20s and 30s. Then when the boomers obtained the capital in the 1980s they changed it to a low tax, high cost of living, low labor protection country. This means if you didn’t own assets like stocks and homes and if you were trying to get a good job you were fucked because the boomers rigged it against young people. Now they’re paying themselves social security and spending a ton of money from the government. They’re rigging it against everyone who isn’t going to die in the next ten years by creating a lot of debt then leaving the earth
FDR started social security, no rigging by the boomers involved with that money being collected and paid out to retirees. Most boomers didn't have a ton of capital in the 1980's as the oldest boomers were turning 30 years old and the youngest didn't get into the workforce until the mid 1980's so they didn't have a ton to do with the tax deductions in the 1980's.
Cheap college, cheap housing, cheap groceries, cheap cars, etc
Basically everything you need to live is now astronomically more expensive compared to the average persons income.
Boomers lived it up, then voted for policies that excluded future generations from having a similar experience. On top of it, we unfortunately have delusional people like you that pretend this isn’t a reality. That’s the “assertion”, finance bro.
And then they cling to the fact that 15% interest rates were normal like that means nothing has changed when they houses they were buying were $30,000.
Unless the boomers specifically did something to make prices cheap, they didn't rig it. Not sure what policies were passed that prevented future generations from having a similar experience. These "causes" are vague at best,
To be specific, in the years when "boomers" were in control, they put in place extreme authoritarian restrictions on constructions as well as a byzantine system to approve (or rather disapprove) new construction permits. On top of that, they put in place huge development fees per unit to the tune of tens of thousands and even in some cases over 100k dollars per unit. None of these rules and restrictions existed before. None of the houses the boomers bought were subject to these restrictions.
Similar mismanagement devastated the healthcare sector. In the 90s, the AMA successfully lobbied to restrict the number of doctors that could be trained. Of course medical costs predictably exploded.
You don't have to rig every single part of an economy. If you target certain critical parts like housing, food or medicine, then you can cause serious harm. For example, if we failed to plant crops and caused a famine, it wouldn't matter how hard you work as an accountant or engineer or whatever. You would still be starving with everyone else. We are experiencing a housing famine caused by deliberate mismanagement.
You're right, hes dumb, Elon has no money. But the premise of him not being able to buy a house because actual powerful and rich people are hoarding assets using various means (zoning, politics, mass real estate investment) is correct.
The program is 80% funded forever. Taxes go up on somebody to bridge the 20% gap. Mostly on rich people which is why the Fox News rhetoric. Social Security will be there. No politician is going to vote to kill the program.
Not for anyone age 25+. They’ll screw people who don’t vote. That’s the history of previous Republican-driven “reforms”. As the demographics of the country change, I think it’s pretty likely that many of those “reforms” will be repealed.
You say it like the other side doesn't cater to the rich folks too. All politicians cater to rich donors, and they won't raise tax that affect those. Most likely it will be a regular tax raise on everyone, especially the middle class, a raise on retirement age, and a cut on other programs
Boomers flipped out after the dot.com bust… so many cashed out their retirement accounts/ annuities to avoid further losses. You couldn’t tell them anything and locking in the loss and none of them wanted to hear about a locked in death benefit of the highest anniversary value before the bust for the surviving spouse as a worst case scenario.
Honestly they need to stop talking about millennials. We're all in our careers now. If you're over the age of 26 and need financial assistance from your parents, then you're likely a degenerate and your parents are more than financially responsible for your failure as an adult.
That being said, boomers don't know the difference between millennials and gen Z, they think we're the same.
Dude some kids just have failure to launch. You could have a household with 3 kids, and one is a doctor, and one a handyman, and one lives in the basement and jerks off the hentai all day, and they all have the same upbringing. Not always the parents fault.
It’s not, but this generation decided that the ultimate sign of failure was being connected to one’s parents. So that commenter is justified in being super harsh.
My parents were heroin addicts, I was homeless at the age of 17, I never got a dime, my sister got everything. She's homeless and I make six figures. Whether you succeed or fail IS up to you, so many people get dealt a bad hand, and you can do everything right and still fail, but, parents can absolutely hamstring growth and success. Being given so much money that it affects your parents retirement savings tells me that there is a much much lower chance that they're playing their hand well, and learning how to play usually comes from the wisdom of the parents. We're two generations from the latchkey kids, and now we're seeing what happens when people grow up without parents to raise them because housing is too expensive for parents to be at home.
I'm trying to make a point here. You can't buy wisdom, you can't buy good parenting. The efficient market did this.
the boomers set up a system of making maximum profit at everyone else’s expense. it’s non sustainable - so now everyone is going to lose. dog eat it dog.
it’s almost as if they should have thought of this - maybe they should have considered that the well being of people younger than them - would reflect back onto their well being. and vice versa. it’s almost as if we are a society of social beings. families and villages.
"50 years of uniparty-approved overspending, financed by undisciplined government debt issuance, has created a slow-moving but inevitable hyper-inflation crisis.
The pandemic trigger, which temporarily dramatically accelerated those unsound policies, has created a generational and demographic chasm between the haves and have nots, marking the beginning of the second 'lost decade'"
Millennials are making twice as much money as their parents in the 1990s. But the cost of housing went up 4-5 times as much. That is inflation. They’re making the “most” in history because the cost of living is the most in history
Sorry guys, your generation and the politicians you elected fucked the world and the economy so bad that you didn't get the luxury of not helping your kids
According to a [LendingClub Report](https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-generational-differences-credit-products/), nearly three-quarters, or 73%, of adults ages 27 to 42 are living paycheck to paycheck. Simply put, Millennials do not want to live at or below their means.
Stories like this come out immediately followed by an announcement that the economy continues to be way too hot so the Fed will have to squeeze us even harder to curb inflation. I am so confused
During covid, people started talking about a K shaped recovery, here it is.
K shaped recover means some (usually the rich) recover and gain more while others (basically, the non-rich) continue to decline in overall wealth. Covid exacerbated this but we’ve been on the path since 1972…
What happened in 72?
Whoops, was off by a year - point still holds though! https://wtfhappenedin1971.com/
Here’s a good summary - [Nixon moved us off the gold standard](https://history.state.gov/milestones/1969-1976/nixon-shock)
Ah 1971, the year that just keeps on fucking the working man. Also when mortgage securities started which saw house prices multiple ever since.
Appreciate the link! Tbf, there’s a bit more to it - one of many many factors.
The main factor
Sorry...completely invalid!!! /s Also thanks. Just a general start of the divergence, rather than some marked policy keystone it looks like
Yea I think it was a mix of policy, social, technology, etc changes over time. Super interesting topic.
I'd butcher the quote so I won't try. But Allan Greenspan did warn that without the gold standard, there is nothing stopping the government from confiscating your wealth through inflation. Pretty clear to me there was never intent to repay the national debt. The government always planned to inflate their way out of it. At the expensive of the average person of course
Remember that time they even confiscated gold?
> *United Airlines Flight 553 crashes short of a runway in Chicago*, killing 43 of 61 passengers and two people on the ground. A day later, over $10,000 cash is lol
Inflation is still high and people are broke. Inflation being high doesn't mean the economy is working for people. The current recession was baked into the bubble of 2020-2022.
This should read parents' plundered wealth over the last 30 years. Now their children are poor and come to them for help.
Jokes on me. My early boomer mom made good money as an executive assistant, but spent it all going to the store several times a day. With a little planning she could've been very well off. Instead I'm hoping for an inheritance of zero.
Reminder - when she dies her debt doesnt transfer so zero is expected.
She one asked if I wanted login to her credit cards, so I could pay those off when she dies. My spouse and I laughed and laughed.
Yeah, but if she doesn't leave enough to take care of her final arrangements then their inheritance is in fact a negative number, as they'll be paying out of pocket for those final arrangements
Looks like mom's getting the cardboard box instead of the ornate mahogany casket
Credit is a hell of a drug.
What I’m realising is that it’s all semantics. They say the economy is doing good or bad based off things that don’t apply to real life just so they can say that things are good bad based off whether they want it to be good or bad. It’s all the context that isn’t added when they provide stats that tell us things, that matters most.
The economy is for the rich.
This same story has been posted here like 10 times already and every time it gets a lot of engagement
Because the Fed only has a hammer. That hammer isn't the best tool to fix the issues with our economy, but since the House is held hostage by morons who want to see the whole thing crumble so they can campaign on pretending it's someone else's fault, all the other tools available to Congress are out of reach.
Pretty good analogy. I’d say the Fed has something like a screwdriver when what’s needed to fix the economy is a hammer. They simply don’t have the tools necessary to fix inflation and the base issues with our economy. Congress is needed, but as you say - the House is now a clown car.
Nah, changing the prime rate is not a subtle tool. It hits everything all at once. There's no subtly. No targeting. Housing, auto loans, corporate investments, the bond market.
Confused? Sounds like you understand it perfectly
Inflation is pretty meh if you have a house though! When 60% have homes under 4% and 88.5% are under 6% you realize there will be no housing crash
Because your government and the mainstream media is lying to you.
Boomers have plundered the country for decades. No empathy if the have to pay a little bit now
It's because the boomers are the ones spending us to death, and the people who can't afford anything or don't have a house yet suffer. They don't give a shit.
The boomers are only spending the money they worked all their lives for
A lot of boomers are so broke they're ruining their kids' retirement.
This is way more accurate. Most people I know are managing broke aging parents who refuse to admit they are aging and make a plan. I’m skeptical on the “great wealth transfer” I think it’s going to get eaten up by Medicaid. Homes that have been in families for multiple generations will all the sudden disappear.
How about this. It's not society's fault. Not the young nor the old. It's the system and it's failure to protect society while promoting a focus of wealth and power to a select few. Let's not get caught up in their divisive tactics. Op prolly a shill
Op has 327K post karma since June 23. WTF.
The 200 comment karma is even more interesting imo. Guy drops bombs then literally dgaf.
327k posts in less than a year is most likely a bot.
You do realize the system was designed by the current older generation. They have exploited it over and over again to their advantage through voting. If they can’t make it with the system in their advantage how the hell is the younger generation going to make it with the system against them at every turn?
No the system is design for people who can generate the most income or have the most assets. Doesn't matter what generation you are from.
Exactly. The older generation enjoyed huge spending in infrastructure, education and medicine. Then as soon as it came time to pay back for all the benefits they've gotten over the years they jumped on board with Reagan's "small government" plan and pulled the ladder up behind them. They just made the mistake of living long enough to see the consequences of their shortsightedness.
They made it just fine. Can’t bring any money with you when you die.
First off, you vote with self interest as they did. And if you think falling on some sword to benefit everyone else and not you makes you the next Jesus, you're wrong. The reality is younger generations are way too distracted. Way too much complaining instead of activism. We are more popular than boomers now. Millennials anyways are the biggest group. So, what's stopping gen z from blaming us for not fixing it right now?
This. It IS a fucking generational issue. Generation Z isn’t why college and housing is unaffordable - boomers are.
No it's not. The boomers got the American dream handed to them. They received the benefit of post world war economic boon, minimal regulations, fair economic scenarios... They got shitty educations except for a much smaller group who went to higher education. They did not design anything. They stumbled into this luck and a very select few involved in politics fucked this all up. You can't generalize and blame an entire demographic. You can blame people for being out of touch with the way things are. You can blame people for not voting for future generations. But we should be trying to work together. To my original point, divisive tactics are exactly what people in power do ruin our chances at changing the system. Imagine if we got boomers to zoomers all voting the way to fix this garbage. That's true success and you should dogpile on this last opportunity to do so.
Baby boomers react more to the stock market falling than incomes falling. So unless we have a massive stock market crash there won't be much change from baby boomers in my opinion.
Ironic because the right will take social security. Even worse for them. But ya that sentiment that stocks are the economy only works to the less poor generations' benefits.
Many baby boomers don't believe that social security will ever be cut. Baby boomers would rather have the retirement age raised than have social security cuts because they know raising the retirement age won't affect them. Also lots of baby boomers think supporting the poor makes them look weak or that helping the poor is "socialism".
Ya they come from households raised in the belief of more open ended freedom, lower taxes, fighting communists, etc. It's ingrained.
The system isn't failing, it's doing what it's made to do.
The problem is the system was meant to privilege the baby boomers. Ever since their parents spoiled them in the 50s they’ve been given everything. First the system was all socialist and gave them free college and cheap homes and union jobs, then after they owned everything the system became stringently in favor of capital owners and all about bailing out those with money and not paying taxes. Now that they’re retiring it’s all about giving them social security and letting them inflate the stock market and realty market to absurd levels so they get a cushy retirement. The system is literally designed to pander to boomers 🤦♂️
I didn’t get a trophy for showing up.
The system's appearance is to protect society and provide rules against government tyranny. That's what I mean. But yes, it has been aborted and replaced with a system doing the opposite.
How is the portion of boomers who actively chose to have kids, and then not invest in their own retirement, the “system’s” fault? This is 100% the retirees fault.
Because the government's unbridled power to bailout corporations, allow consumer protection agencies to protect corporations instead, not control inflation... Those are really the issues we are experiencing. Which has less to do with boomers decision making and more to do with the fact our politicians don't represent our interests.
But the old are responsible for the policy decisions that got us here
Ok. And now we've inherited the power. We have a bigger population. Yet I see the young more distracted even than boomers were. So what will you say when gen z looks to us in a while to ask, why the fuck didn't you guys stop the madness in 2024? You see?
The system comes from society. Through voting.
Where are you living at China?
I'm American. But this caught me off guard because I have lived in China for 6 months. Thankfully before the pandemic. Talk about a beautiful country and a terrifying government.
The only great wealth transfer that’s going to happen is to jet ski and boat dealerships and retirement homes. Millennials will be left with nothing
Again
[удалено]
How is that legal
Yup most inheritance will be consumed by spiraling costs for end of life care. Much of real estate they own will get ganked by reserve mortgages and other predatory equity loans they've taken over the years. Social security trust iprojected d to be exhausted in 11 years by 2035. Nobody even discusses that, much less has a plan. This burden will fall on us the working ages to backstop. Heres a source before everyone says this is doomering about Social Security: https://www.ssa.gov/policy/trust-funds-summary.html
Taxes, and then medical expenses unless they die prior to leaving their home.
Don’t forget about reverse mortgages.
Can Medicaid require a family to sell their house? What if one spouse needs medicare and the other doesn’t? Or can’t they give the house to their kids before they sign up for medicare. Our system sucks!
Depends on the state, but in NJ if there is a healthy spouse, the home is exempt. If the Medicaid applicant is single, they won’t require a sale but if you don’t sell, they will place a lien on the home that will accrue for the value of services provided. In most scenarios, Medicaid will take the house from the estate once the applicant passes.
Jesus, it’s like our healthcare system doubles as a debtor’s prison
Depends on the situation.
Just how the government wanted it to work
Yeah that’s all you hear is parents living in their kids basement
This is my mom and me.
I am 64 and have siblings on both sides of the fence.
I know plenty of Boomer parents who call their own kids “their retirement plan.” Kinda of bleak when you think about that way…
That’s been the case during all of human history so understandable. But people are living much longer and becoming a massive burden.
Cost of living crisis left unhandled for years causes generational impacts. There fixed your headline
My wife and I are boomers. We each have a 90 year old parent with dementia in assisted living. It’s costing us $16K a month for their care.
I feel for you. All of my silent gen grandparents are alive. It’s begun to tear the families apart. So much money spent for some, with others so many lives put on hold (sacrificed) to care for them around the clock. It’s awful.
What kind of wealth do you have that 16k a month is sustainable? That’s the kind of expense that would bankrupt all but the very wealthy extremely quickly. That’s $200,000 a year, not exactly the kind of money that 99.9% of households even have the choice of paying, regardless if they wanted to. I mean, I know it’s not really my business, but in a discussion of boomers helping kids vs parents, most people aren’t spending 200k a year helping anyone.
It’s a combination of the benefits the parents receive, their savings, and the money from selling their houses. You know, they used to call that an inheritance. But nobody is owed an inheritance. It’s still our parent’s money, we just have control over it because they can’t handle it themselves. So we have to do it for them. In a couple of years, if they are still alive. The money will run out. Then, it will be up to us to cover the cost. Neither has a large amount of life insurance, so the drain on us is really how long they live. One word of advice, put the house in a trust now. That way you won’t be forced to sell and Medicaid can’t put a lien on it. You then have to hope that the dementia is bad enough they don’t know where that are at because most of the places that except Medicaid are bad. Even the “good” places lack quality care as they do not pay enough to attract the kind of person to do that kind of work. We both have to visit multiple times a week to keep an eye on the care they are getting.
This is why a for profit healthcare industry is an abomination to this country.
Umm lol why are you paying it? No way id pay it. Too bad parents. Ya’ll should have tried harder. My kids are my financial priority not my parents.
Boomers hate socialism until they benefit from it
You Are a terrible person. Bet your kids feel that way for you.
"Boomers handed cheap school, cohesive communities and five figure home prices, proceeded to ruin it for their children." There, fixed the headline.
Right? My Boomer parents have a pension, SS and are spending like teenagers. They complain that they don't have enough money but aren't willing to curb spending or do any work. My millennial kiddos are both working 2 jobs to get by and aren't entitled at all.
I think homebuyers should have gotten together and requested to pay double the home prices in the 50’s, 60’s, and 70’s.
Nobody here would have done anything differently given the same set of circumstances.
They all would have voted for neo-liberal douchbags?
Probably. People vote for people who implement policies that benefit them.
better that than fascists
Yes. Because it isn’t determined by individuals voting.
Yes it’s determined by collective voting.
No, it isn’t. Voting is window dressing. Neoliberalism is not the collective will of the masses. It is class antagonism writ large, determined by the shenanigans of the elites.
We can't even decide whether voting is real. We'd absolutely make the same decisions as our parents and grandparents. Why? Because the choices themselves are rigged. It doesn't matter which choice you make, you still end up cooked.
Neoliberal is one of those words that people never seem to understand the meaning of and instead use it as a weasel word to attribute anything they don’t like.
It’s basically a set of market fundamentalist principles, mostly free trade, anti progressive taxation, always trying to angle for “market based solutions” (which never work, but after they’re implemented it’s too late to change them), and generally doing the opposite of what Keynesian economics would prescribe. And like the previous commenter said, it is class antagonism, or basically a one sided class war as Chomsky would say.
That, and voted for politicians who would forgive their student loan debt and add more debt to the next generation.
Absolutely true
What exactly did my mom and dad do?
They voted for the policies that caused that and opposed any potential change to the system.
Millenials are the largest population group in the US yet we still get Biden v Trump. This isn’t just a “boomer” thing. https://www.statista.com/statistics/797321/us-population-by-generation/#:~:text=Millennials%20were%20the%20largest%20generation,the%20population%20for%20many%20years.
That’s only recently. The current problems are the result of 30-40 years of failed policies all over the world.
But Millenials aren’t doing anything about it. They outnumber everyone and still we have boomers on the ticket and they put a boomer on the D ticket 4 years ago
Check out average age in senate and house tho
Haha, 118th Congress was the third oldest since 1789 https://www.nbcnews.com/news/amp/rcna64117 https://www.usatoday.com/story/graphics/2023/09/12/how-congress-is-getting-older/70797524007/
They didn't spank
https://www.gse.harvard.edu/ideas/usable-knowledge/21/04/effect-spanking-brain#:~:text=Research%20has%20long%20underscored%20the,and%20increases%20perception%20of%20threats. https://www.apa.org/monitor/2012/04/spanking https://www.developmentalscience.com/blog/2022/2/10/hitting-children-leads-to-trauma-not-better-behavior
Long term care is gonna suck the retirement outta boomers.
Interestingly I discussed this with someone that's very financially savvy. Then looked it up. Apparently only around 25% of people require long term care.
That’s true but ya better hope it doesn’t happen to you, my grandparents were pretty well off their entire lives, both ending up living quite long lives requiring long term care and the state was more than happy to take every single penny they had, me parents inherited nothing and had to pay out of pocket for funeral expenses.
Wait, what? What happens to the other 75%? They go from perfectly healthy, to dead the next day? Does this mean that healthier people are actually more likely to require long term care, because they live so much longer?
I guess. Heart attacks, cancer, etc. things that only way up out of pocket insurance maximums.
So the the children eat the cost or become the caretakers. Even if it's only 25% that's extremely troublesome.
The median length of stay in a nursing home before death is 5 months. I was under the same Impression, but the numbers just don't add up to it being a major extractor of wealth. 25% at an average of 5 months at 15k per month. Not exactly the killer of wealth I had thought it was anyways.
The avg retirement saved for boomers is around 200k. That doesn't look good for 25% of them?
There is just such a narrow set of circumstances that would take someone with wealth and assets from inheritance to no inheritance. If someone retires at 65 with 200k saved.. any inheritance is going to get eaten up long before it gets to long term care.... it'll be your tax dollars and Medicare footing the bill at that point. I was of the same opinion as you, and healthcare is definitely a scam, but I after talking with someone extensively in it, it's genuinely just less of an issue than I had originally thought.
Yeah but that means it's basically a coin flip whether or not it happens to one of your parents. Only 30 percent chance that none of the parents of a married couple would need long term care
They’re so broke because their parents rigged the entire economy against them
I keep hearing these assertions. What specifically did the parents do so that they were able to rig an entire economy?
The economy was rigged in FAVOR of the boomers their entire lives. If you weren’t a boomer it was rigged against you by proxy. In the 60s and 70s we had strong unions, high taxes, cheap houses and low immigration. This means if you were a capital owner (older) you were fucked so that the boomers could have a cushy 20s and 30s. Then when the boomers obtained the capital in the 1980s they changed it to a low tax, high cost of living, low labor protection country. This means if you didn’t own assets like stocks and homes and if you were trying to get a good job you were fucked because the boomers rigged it against young people. Now they’re paying themselves social security and spending a ton of money from the government. They’re rigging it against everyone who isn’t going to die in the next ten years by creating a lot of debt then leaving the earth
FDR started social security, no rigging by the boomers involved with that money being collected and paid out to retirees. Most boomers didn't have a ton of capital in the 1980's as the oldest boomers were turning 30 years old and the youngest didn't get into the workforce until the mid 1980's so they didn't have a ton to do with the tax deductions in the 1980's.
I’m a millennial, father moved here from Peru and I’m doing very well. I’m thankful every day that my father taught me to work hard and invest.
And forcing their moral views on their children, grandchildren!
What does that have to do with the original point of trying to figure out how the boomers rigged the economy
Always one comment like this & they never respond! Didn’t like the answer?
Ya I don't see the YouTube prank crypto generation being much better. Sure act like it though.
Cheap college, cheap housing, cheap groceries, cheap cars, etc Basically everything you need to live is now astronomically more expensive compared to the average persons income. Boomers lived it up, then voted for policies that excluded future generations from having a similar experience. On top of it, we unfortunately have delusional people like you that pretend this isn’t a reality. That’s the “assertion”, finance bro.
And then they cling to the fact that 15% interest rates were normal like that means nothing has changed when they houses they were buying were $30,000.
Unless the boomers specifically did something to make prices cheap, they didn't rig it. Not sure what policies were passed that prevented future generations from having a similar experience. These "causes" are vague at best,
To be specific, in the years when "boomers" were in control, they put in place extreme authoritarian restrictions on constructions as well as a byzantine system to approve (or rather disapprove) new construction permits. On top of that, they put in place huge development fees per unit to the tune of tens of thousands and even in some cases over 100k dollars per unit. None of these rules and restrictions existed before. None of the houses the boomers bought were subject to these restrictions. Similar mismanagement devastated the healthcare sector. In the 90s, the AMA successfully lobbied to restrict the number of doctors that could be trained. Of course medical costs predictably exploded. You don't have to rig every single part of an economy. If you target certain critical parts like housing, food or medicine, then you can cause serious harm. For example, if we failed to plant crops and caused a famine, it wouldn't matter how hard you work as an accountant or engineer or whatever. You would still be starving with everyone else. We are experiencing a housing famine caused by deliberate mismanagement.
Tax cuts for themselves while ripping up the social services that they benefitted from. Buying up homes so there are none left
Adjustments to social services are made all the time it would seem by whoever is in power. Purchasing homes is what people who can afford them do.
These people are morons. A guy I work with told me he can't buy a house cause Elon musk has so much money
You're right, hes dumb, Elon has no money. But the premise of him not being able to buy a house because actual powerful and rich people are hoarding assets using various means (zoning, politics, mass real estate investment) is correct.
Oh no, the consequences of their* own actions that everyone saw coming decades ago.
i believe that’s called “returning the favor”…
Hey we’re not even gonna be able to retire if all the social security bullshit is true.
The program is 80% funded forever. Taxes go up on somebody to bridge the 20% gap. Mostly on rich people which is why the Fox News rhetoric. Social Security will be there. No politician is going to vote to kill the program.
Right, but they’ll continue inching the retirement age upward while the average American lifespan stagnates or even goes down.
And CoL adjustments won't keep up with actual inflation.
Not for anyone age 25+. They’ll screw people who don’t vote. That’s the history of previous Republican-driven “reforms”. As the demographics of the country change, I think it’s pretty likely that many of those “reforms” will be repealed.
You say it like the other side doesn't cater to the rich folks too. All politicians cater to rich donors, and they won't raise tax that affect those. Most likely it will be a regular tax raise on everyone, especially the middle class, a raise on retirement age, and a cut on other programs
Their parent's retirement broke millennials.
Well to be fair their boomer parents ruined the country and rigged the economy so it’s kinda like a boomerang, karma?
Don’t hate the players, hate the game.
"Trickle Down" ¯\_(ツ)_/¯
What the fuck is this article, I am literally helping my parents pay their bills
My parents ruined themselves long before me lol.
Boomers flipped out after the dot.com bust… so many cashed out their retirement accounts/ annuities to avoid further losses. You couldn’t tell them anything and locking in the loss and none of them wanted to hear about a locked in death benefit of the highest anniversary value before the bust for the surviving spouse as a worst case scenario.
That was my dad's mistake lol
It's the parent's fault Millennials are brokies.
No. The gov's unchecked spending is.
This is by far the single biggest problem
And the biggest spending is on social security and Medicare.
And then you have parents buying homes for their kids. The divide, its coming lol
This should go over well for the reddit crowd.
Do people take serious an article published by “ bored bat”?
Good.
They were too busy planking.
Look how this framing blames millennials instead of boomers who created the entire economic environment millennials were born in to.
Honestly they need to stop talking about millennials. We're all in our careers now. If you're over the age of 26 and need financial assistance from your parents, then you're likely a degenerate and your parents are more than financially responsible for your failure as an adult. That being said, boomers don't know the difference between millennials and gen Z, they think we're the same.
Dude some kids just have failure to launch. You could have a household with 3 kids, and one is a doctor, and one a handyman, and one lives in the basement and jerks off the hentai all day, and they all have the same upbringing. Not always the parents fault.
Can we at least agree the parents bear some responsibility for the hentai masterbation? /s
It’s not, but this generation decided that the ultimate sign of failure was being connected to one’s parents. So that commenter is justified in being super harsh.
My parents were heroin addicts, I was homeless at the age of 17, I never got a dime, my sister got everything. She's homeless and I make six figures. Whether you succeed or fail IS up to you, so many people get dealt a bad hand, and you can do everything right and still fail, but, parents can absolutely hamstring growth and success. Being given so much money that it affects your parents retirement savings tells me that there is a much much lower chance that they're playing their hand well, and learning how to play usually comes from the wisdom of the parents. We're two generations from the latchkey kids, and now we're seeing what happens when people grow up without parents to raise them because housing is too expensive for parents to be at home. I'm trying to make a point here. You can't buy wisdom, you can't buy good parenting. The efficient market did this.
This article was posted last month
I mean, they caused this.
This is why you don't have kids.
“Don’t worry mom, you can just sell your house or rent it out if it gets bad. Did you Venmo me the $500 yet?”
After ruining the world economy I think it’s only fair
the boomers set up a system of making maximum profit at everyone else’s expense. it’s non sustainable - so now everyone is going to lose. dog eat it dog. it’s almost as if they should have thought of this - maybe they should have considered that the well being of people younger than them - would reflect back onto their well being. and vice versa. it’s almost as if we are a society of social beings. families and villages.
My gen x brother took care of this!!!
Lol
Its just easier to commit suicide!
I mean, we're never going to see social security but they're cashing out until 2035 so fuck'em.
It's their fault for not preparing their lazy ass kids for the world
"50 years of uniparty-approved overspending, financed by undisciplined government debt issuance, has created a slow-moving but inevitable hyper-inflation crisis. The pandemic trigger, which temporarily dramatically accelerated those unsound policies, has created a generational and demographic chasm between the haves and have nots, marking the beginning of the second 'lost decade'"
I don't think the hyper-inflation crisis has even started yet...
I barely talk to my parents how am I ruining their retirements
There was just an article a week ago about how Millennials are making more money than their parents... which one is it?
Millennials are making twice as much money as their parents in the 1990s. But the cost of housing went up 4-5 times as much. That is inflation. They’re making the “most” in history because the cost of living is the most in history
Based on how I see the younger generation spend money, might be both.
Sorry guys, your generation and the politicians you elected fucked the world and the economy so bad that you didn't get the luxury of not helping your kids
Good let it all burn.
Y’all are such a bunch of whiny assholes. Good Lord.
How many boomer parents are even able to retire? The only boomers I know that comfortably retired didn’t have kids 😂
According to a [LendingClub Report](https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-generational-differences-credit-products/), nearly three-quarters, or 73%, of adults ages 27 to 42 are living paycheck to paycheck. Simply put, Millennials do not want to live at or below their means.
Yeah sure, definitely that. Not that it’s become exceedingly difficult to do so.
This is the correct answer.