The Millennials As Our Economic Salvation (Our Kids Will Make Us Rich!)

Rich KidsAccording to Business Insider: “The Fate Of The U.S. Economy Depends On That College Grad Who Is Stuck Making Your Latte.” That seemed both a bit simple and looking at what Starbucks wants you to pay for a latte, pessimistic. But then, I’ve never understood how Starbucks could succeed in a rational world and there they are, so it seemed I should pursue this pronouncement from the Insider, which is also an inarguable presence.

The article lays our rescue squarely upon the millennials, those 18 to 34-year-olds trapped,  per the Insider, in dead end jobs while indentured by student loan payments. They will also shortly carry the burden of Obamacare. As the Insider story goes, they face quite a challenge.

First, they need more money, soon:

   “Wages will decide everything–how many will default on their student loans, how much money they can save for a house, even how much they will pay in taxes to the Federal government.

It all depends on rising paychecks. Without higher salaries for millennials, baby boomers will struggle to sell their houses to a younger generation. New parents cannot save for their own children’s education.”

The theme comes down to this: Unless these kids replace the spending lost with the 2008 financial crash, all is lost. And nobody seems to know where they will find the money to spend.

Nonsense! The implication is, we must spend ourselves rich. Old Keynes blown up past what he ever said by the politicians who think taking your money is the start of every economic medication, never mentioning that every dollar taken by government is one less dollar the private sector has to generate real wealth. In my pet analogy, they wish to provide an economic transfusion with fresh blood just drained from the sick economy.

It’s not clear where the millennials will find the riches identified as needed to buy recovery for the economy, especially with government continually reducing the supply and raising the cost of energy to meet environmental goals. Oh, and raising taxes, too. The more blood you pull from a sick patient, the sicker he becomes, which is why the old practice of doctors bleeding their sick patients went out of fashion. Government economists have apparently not caught up with that as yet.

The last U.S. President who presided over a severe depression that didn’t last prescribed a policy that worked as to the depression–it lasted less than two years–but suffered from the politically fatal condition that it prevented the politicians from either gaining power or claiming responsibility for the result. His Secretary of Commerce opposed his policy vehemently, to no avail.

President Warren Haring dealt with the deep, short depression of 1921 by doing…nothing. He let banks pay for their excesses, investors pay for their mistakes and the economy clear itself of interventions and distortion. Recovery resulted. His protesting Secretary of Commerce had his own shot in 1929, when he became President, but President Herbert Hoover, a Progressive who believed in government intervention, famously didn’t do too well when his turn came. Nor did his successor, Franklin Roosevelt nor has any who expects government to resolve economic failures by bleeding the economy.

Seems to me, the Insider’s article is correct that the millennials face poor prospects so far as we can see now. Seems right too that part of that is a declining U.S. living standard as far as the eye can see. After all, that’s been going on since the stay-at-home moms had to go to work in the 1970’s.

But the government won’t cure things, all it can do is spend; still practicing bleeding sick patients…a lot of whom have died for some reason…

About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much) Couple of degrees in government, a few medals in figure skating; just reading and suspicion for economics ...
This entry was posted in Bank Failure, Debt, Depression, Domestic Policy, Economics, Energy, Environment and tagged , , , , . Bookmark the permalink.

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