I often read articles & posts where young people are bemoaning their financial lot in life. They complain about student debt. The gripe about limited opportunities. The grouse about job prospects.
I’ve always believed they were being prematurely pessimistic. Yes, the economy is a bit ‘wobbly’ these days – but there is no crisis. Sometimes it seems everyone wants to play the victim these days.
Related: Gen Z Growing Wealth: The Kids Are Alright
This chart (from The Economist) shows that the kids are all right. It shows – using consistent 2019 dollars – that they are earning more than every generation that preceded them.
Every generation on the chart has exceeded the generations before them. Seven generations all the way back to the 1880s! Are you surprised to see that Gen Z is doing about 40% better than their Gen X parents and 100% better than their Silent Generation grandparents?
Glad to see that America continues to be the land of opportunity!
Have a GREAT WEEKEND!
Image: Pixabay
MrFireStation 
I do not believe this chart because the government has been playing games with the inflation rate for decades, so the inflation numbers that are used to normalize earnings will be off. Inflation has been horrendous in the US since Nixon fully took us off the gold standard.
I look at where I was when I was at each of my three son’s age and I was ahead of where they are.
Some of the areas that have been played with are housing, higher education, medical care and taxes because the brackets and phase outs have not be adjusted correctly to compensate fully for inflation.
I would like to add that there has been a dramatic inflation in expectations. Thinking back to when I was young, we never had air conditioning, cable tv, mowed our own lawn, seldom went out to eat and when we did it was plain fair (less expensive), families shared a single car, seldom went to a movie, never had paid coaching for sports, went to public schools, vacations were camping trips and we drank water from garden hoses. Would my son’s be willing to live a 1970s standard lifestyle in to setup their own household?
LikeLiked by 1 person
Good points. I actually agree with your reasoning, even if I differ with your conclusion. First, yes, I think the government cheats on their inflation estimate. To that degree, this chart would be overstating more recent incomes, compared with incomes from previous generations. That said, to the point that you make about the world when you were growing up and the expectations your kids have, they do have higher expectations because our standard of living has improved. That alone is good evidence that they are doing better than the previous generations in many ways. Also, contrary to your experience, when I compare what my son makes with what I made (or my Dad made) at the same point in our lives, he is earning much more than I was. Bottom line, I think Gen Z is doing just fine!
LikeLiked by 1 person
Your son is in the technology field that has very good starting incomes, so his earnings would be similar to mine when I got out of college.
From my previous posts I hope you heed my caution that technology jobs will not necessary continue forever and there can be rough patches. In 1991, Southern CA had massive layoffs because of the Soviet Union falling which resulted in massive defense industry layoffs including me. Six properties that touch mine were lost to foreclosure. These neighbors all had better cars though.
1996 to 2000 was my all time best time in technology due to the adoption of the internet and Year 2K system replacements. There were a lot of people who didn’t have a real background in technology who got into it with a sort of gold rush mentality. They were the first to be let go when times got tough.
The second quarter of 2000 had massive layoffs caused by a correction to the over investment in technology. There was too much money chasing too little market. Once again I got laid off from a job that represented my all time high earnings unadjusted for inflation. Forbes Magazine had an article about undead companies that were overfunded by venture capitalists called the undead.
https://www.forbes.com/global/2002/1111/028.html?sh=5583f56335eb
The takeaway for your son is don’t bank on a continuous smooth ride and be skeptical of job offers that seem to good to be true. In my case the layoffs were a blessing because they made me fear having lifestyle inflation, so I did crazy things when times were good like max out 401-ks and send one-half of my earnings to a Deferred Comp Plan. This set me up for making my all time favorite purchase, which was myself. I was able to buy freedom AKA retirement.
LikeLiked by 1 person
Agree – He just started at his third company since graduating college. He left Amazon last year. They employed 200K software developers and laid off 29K. He got caught up in that. His boss and coworkers were all out. Layoffs across big tech have been common post-pandemic. Many are calling it the second pop of the dot-com bubble.
LikeLiked by 1 person