Back in 1999, a quarterof all 25-year-olds lived with their parents. By 2013 this number has doubled, and currently half of young adults live in their parents home.
While the troubling implications for the economy from this startling increase are self-evident, and have been extensively discussed both here and elsewhere (and are among the key factors pushing both the US and global economy into secular stagnation), a just as important question is why are increasingly more young adults still living at home.
While we admit there is something morbidly grotesque in none other than the Fed taking an active interest in this most devastating development (for the simple reason that it has been the Fed's own policies that have unleashed not only the $1.3 trillion wave of student debt but an army of Millennials in their parents' basement), it is the Fed itself that has been the latest to attempt an answer.
Here is the Fed's response to "Why Are More Young Adults Still Living at Home?"
Economist Maria Canon and Regional Economist Charles Gascon noted that many factors have been suggested for why young adults return to or continue living at home,including significant student debt, weak job prospects and an uncertain housing market. The table below breaks down the percentage of 25-year-olds who were living at home for the period 2012-2013 in each state in the Federal Reserve’s Eighth District as well as in the country as a whole.
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The biggest reason is we're raising a bunch of sissies. they are being taught that having no responsibility is acceptable.
ReplyDeleteAnd the younger they are the longer they stand and stare into the refrigerator like something will magically appear.The other day my son opened the refrigerator and stood there staring into it for one full minute.maybe it was so full he couldn't decide what he wanted,or maybe it was so empty he couldn't find what he wanted.
ReplyDeleteThe answer is easy. High student loan debt, and low paying jobs make for poverty! Unless you want to throw them on the street, or a homeless shelter, they have no where else to go. That's why both my sons still live at home with me. As long as I am alive, they have have a home. That is what families do for each other.
ReplyDelete