According to an Associated Press article in the Daily News, the difference in wealth between younger Americans and those 65 or older is currently the largest it has ever been.
While job opportunities for young people have dried up in the last 25 years, the median net worth of those 65 or older has increased by 42 percent. During the same period, the median wealth of those under 35 years old has decreased 68 percent, according to census data released today. The results were adjusted for inflation
While wealth is generally accumulated over a lifetime, the disparity in wealth between old and young is double what it was in 2005 and close to five times what it was in 1984.
From Daily News:
The analysis reflects the impact of the economic downturn, which has hit young adults particularly hard. More are pursuing college or advanced degrees, taking on debt as they wait for the job market to recover. Others are struggling to pay mortgage costs on homes now worth less than when they were bought in the housing boom.
The report, coming out before the Nov. 23 deadline for a special congressional committee to propose $1.2 trillion in budget cuts over 10 years, casts a spotlight on a government safety net that has buoyed older Americans on Social Security and Medicare amid wider cuts to education and other programs, including cash assistance for poor families.
Someone’s net worth includes things like a person’s home, possessions and savings. The older someone is, the more likely it is they’ve paid off their mortgage. Median means that the numbers presented are for the middle or average household in each group.
The 47-1 difference in wealth is believed by many to be the highest in history, even predating available census data.
What do you think would create more jobs for today’s young people?