Support AlterNet
Do you value the information you're getting from AlterNet? Please show your support with a tax-deductible donation.
Feedback
Tell us how we're doing.
Generation X's Debt Headache
Share and save this post:
AlterNet Social Networks:
"Government no longer has our back," explains Tamara Draut, author of the recently published book Strapped, in an email. "Young adults today, working to get into the middle class -- they're being hit by a one-two punch: The economy no longer generates widespread opportunity, and our public policies haven't picked up any of the slack."
Her words ring uncomfortably true. As a "young adult" (age 29, thank you very much) from the generation Draut is covering, I've watched more than a few college-grad friends struggle to pay off their towering school loans and credit card debt -- usually on "creative sector" annual salaries ranging from $25K to $40K (while attempting to thrive in notoriously overpriced cities such as New York, Boston and San Francisco).
According to Strapped, Gen X-ers have it much worse than our Baby Boomer parents, because while typical earnings for college grads have stayed the same for three decades, the costs of housing, education and health care have grown exponentially -- much faster than inflation.
The grim financial situation many young folks are now facing is part of a broad governmental failure to regulate the rising costs of higher education, to boost the minimum wage to a livable wage, and to create a sufficient number of full-time jobs -- with benefits -- to ensure that America's massive twenty- and thirty-something work force is healthy and paid well enough to provide for their families.
The result of this sweeping federal failure isn't pretty. Attending college, for many middle-class as well as low-income families, is a "damned if you do, damned if you don't" proposition, and in 2003, less than a third of young adults aged 25 to 29 had a bachelor's degree. College is just too expensive for all but the luckiest few to afford -- but not having a degree means difficulty in landing a job. According to Draut, in 1972, the typical male high school graduate, aged 25 to 34, earned $42,000 in inflation-adjusted dollars; three decades later, male high school graduates of the same age were earning just over $29,000.
Because of the scarcity -- and competition to find -- full-time salaried jobs, growing numbers of young people are turning to part-time or temp gigs. During the '90s, the number of jobs handled by temp agencies doubled. And more and more young people are being forced to move back home with their parents; nowadays, four out of 10 people move home at least once after college.
I discussed all of these issues, and more, with Strapped author Tamara Draut in an email interview.
Laura Barcella: What inspired you to write this book?
Tamara Draut: I wanted to counter the conventional wisdom that young people today are struggling financially because they lack a strong work ethic or because they're profligate spenders. There is so much frustration out there among both parents and young people who can't understand why they're having such a difficult time getting ahead. I wrote Strapped with the hope of raising awareness that the challenges facing this generation are not personal, but the result of political decisions made over the last three decades.
LB: What sort of social or economic impact do you hope the book will have on American culture, and young people in particular?
TD: Already the book is having impact. I get countless emails from young people thanking me for telling this story. I've even gotten emails from parents telling me that they now better understand the lives of their twenty-something children. On a larger scale, I hope the book inspires more young people to fight for reforms by showing that the breakdown in opportunity and economic security didn't "just happen," and it can be changed.
LB: Can you give us a brief overview of why exactly "getting ahead" has gotten so much harder for young people today?
Laura Barcella is an associate editor at AlterNet.
Liked this story? Get top stories in your inbox each week from Corporate Accountability and WorkPlace! Sign up now »
EMAIL
PRINT
165 COMMENTS
