Having enjoyed a stretch of relative economic prosperity, boomers are now committing younger generations to a fate of austerity and stagnancy — an intergenerational transfer dubbed “fiscal child abuse” by one pundit.
Is this the unluckiest generation?
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D - I have already characterized spend-and-don't-tax (neo-con) as a generationist issue.
Leave the debt to your kids. Nice.
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His concern is justified according to research demonstrating that graduating into a recession can have permanent consequences for income and job quality.
“There is a risk that the longer it takes, the more their skills depreciate, and the less attractive they are to employers,” said Philip Oreopoulos, labour economist at the University of Toronto and co-author of a study analyzing the incomes of a large number of Canadian graduates over a 20-year period.
The central finding of the much-cited study: Luck matters.
Those unlucky enough to graduate into a recession face an average initial income shortfall of almost 10%. It takes an average of ten years after graduation to overcome the initial damages.
“They’re significant and real and long-term,” Mr. Oreopoulos said. “For some people, there are lifetime effects.”
While contending with the effects of a recessionary employment market, what’s known interchangeably as Generation Y, the Millennial Generation, or the Echo Boomers also must wrestle with a macroeconomic albatross that could persist long into their working lives.
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D - and hitting the nail on the head:
More and more, baby boomers are indicted by analysts as having handed off to future taxpayers a monumental bill for years of unsustainable finances.
Through their control of politics and elections, boomers “have rationally chosen a path of more consumption today at the expense of future generations,” Jason Hsu, chief investment officer at Research Affiliates said in a recent report.
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