> The economic realities of adult life have come as a rude surprise to Mark and Alison Kramer and many others whose childhoods coincided with the great boom time of the fifties. A house, a car, staples of middle-class life, now seem like luxuries. . . .
>Growing up in the fifties, the assumption for most people was that they would equal or do better than their parents. Upward mobility was an immutable fact of American life. Since 1890, every group of Americans had done better than the one before it, and at a faster rate. That’s no longer so. . . .
> “The baby boom generation may never achieve the relative economic success of the generations immediately preceding it or following it.” . . .
> Sustained inflation means that to have the same buying power today that one’s parents enjoyed 30 years ago, one would have to make more than three times as much. And the tax bite on that inflated income, given its higher bracket, is much greater. Worse, the cost of housing has soared, and that, combined with high interest rates, has made it impossible for most in the baby-boom generation to afford the houses they grew up in.
Just goes to show that downward mobility is in many cases a question of expectations not matching reality. And also, the more things change, the more they stay the same.
The 17% interest rate is the killer here - the high cost of consumer borrowing is a major barrier to achieving these milestones.
My parents bought a $40,000 2 bed/1bath house in 1981, and due to interest rates they paid the same monthly payment as I did when I bought a much nicer 3/2 home at $150,000 in 2005.
[OP] JorSum | 17 hours ago
Excerpt:
> The economic realities of adult life have come as a rude surprise to Mark and Alison Kramer and many others whose childhoods coincided with the great boom time of the fifties. A house, a car, staples of middle-class life, now seem like luxuries. . . .
>Growing up in the fifties, the assumption for most people was that they would equal or do better than their parents. Upward mobility was an immutable fact of American life. Since 1890, every group of Americans had done better than the one before it, and at a faster rate. That’s no longer so. . . .
> “The baby boom generation may never achieve the relative economic success of the generations immediately preceding it or following it.” . . .
> Sustained inflation means that to have the same buying power today that one’s parents enjoyed 30 years ago, one would have to make more than three times as much. And the tax bite on that inflated income, given its higher bracket, is much greater. Worse, the cost of housing has soared, and that, combined with high interest rates, has made it impossible for most in the baby-boom generation to afford the houses they grew up in.
vi_sucks | 17 hours ago
Lol.
It's amazing how things never change.
TheDiceBlesser | 16 hours ago
I think Gen X might have some thoughts on their economic success in comparison to the Boomers 😂 what a ridiculous statement!
alf0nz0 | 12 hours ago
Much like today, when this article came out, the oldest Baby Boomers were almost pushing 40 🙄
Ok-Swan1152 | 13 hours ago
This is hilarious.
Just goes to show that downward mobility is in many cases a question of expectations not matching reality. And also, the more things change, the more they stay the same.
RepresentativeNo2187 | 10 hours ago
So then, what happened? I'd love a follow up.
HoneydewNo7655 | 8 hours ago
The 17% interest rate is the killer here - the high cost of consumer borrowing is a major barrier to achieving these milestones.
My parents bought a $40,000 2 bed/1bath house in 1981, and due to interest rates they paid the same monthly payment as I did when I bought a much nicer 3/2 home at $150,000 in 2005.
smellslikebadussy | 11 hours ago
Ungrateful!