Overwhelmed By Debt, Nearly 1 In 5 Young Adults Live With Their Parents Or Grandparents

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

In America today, more than 60 million people live in multi-generational households.  That number is so large that it may seem difficult to believe, but the truth is that vast numbers of young adults have had to move back in with their parents and grandparents in recent years due to the deteriorating economy.  Millions of our young people cannot find decent jobs once they leave school, and millions of them are absolutely overwhelmed by debt.  Of course some of them are just lazy, but whatever the reason it is undeniable that multi-generational households are on the rise.  According to the Pew Research Center, 12 percent of the U.S. population was living in multi-generational households back in 1980.  Today, that number is up to 19 percent.  That means nearly one out of every five U.S. adults now live with their parents or their grandparents.

One of the big culprits, of course, is student loan debt.

According to CNN, approximately 70 percent of all college graduates will have student loan debt to pay off once they leave school, and the average loan balance for those graduates is about $28,950.

But there are many that run up $50,000 or $100,000 in debt at high end schools.  We encourage our young people to apply to the “best schools” that they possibly can, and we tell them that they shouldn’t worry about how much it will cost.  We assure them that they will be able to easily pay back any debts once they leave college because of the “good jobs” that they will get upon graduation.

Unfortunately, millions upon millions of our young people have discovered that the good jobs that they were promised simply do not exist.

We are also seeing other forms of debt rise to frightening levels in this nation.  The following comes from the New York Times

Over all, Americans’ use of credit cards has recently been creeping up again: Household debt in the United States increased by $35 billion, to $12.29 trillion, during the second quarter of 2016, a 0.3 percent rise from the previous quarter that was driven by credit cards and auto loans, according to a report released on Tuesday by the Federal Reserve Bank of New York.

We often criticize the federal government for being 19.4 trillion dollars in debt, and rightly so, but let us not forget that U.S. households are 12.2 trillion dollars in debt.

We are a society that feels entitled to everything, and we are not afraid to go into debt to get it.  And unfortunately we have passed on this “entitlement mentality” to the next generation.

In a recent blog post, Jenna Abrams did an amazing job of describing the crisis that we are facing with our young adults today.  Here is an excerpt…

Today I asked my followers how would they describe Millennials and this is what I got: “lazy”, “thin-skinned”, “spoiled”, “selfish”, “undisciplined”, “self-absorbed”, ”fragile”, “oblivious”, etc. and I can agree on this. This generation is really what you call it. But there was one description that is the most accurate.  “Raised by neglectful, over-compensating for inadequacy, self-serving parents.”

 

You’re in charge. You insisted your children and grandchildren have to get higher education instead of taking a blue-collar job or just entering the workforce after school like your generation did. Most of you pay for that (often unnecessary) higher education. You are overprotective and prevent your children from playing outside and making mistakes you had a chance to make to gain that thick skin. You don’t let your 12-year-old kid stay at home alone because they are too young. And who is wrong when your child has a conflict at school? I bet you always blame the other side, not your “special snowflake”. And how you get surprised that the whole generation gets offended by facing the truth: they are not special. It must hurt, right?

This generation of young adults is the most “educated” in our history, and yet they also appear to be one of the least competent.  Just check out these numbers from CBS News

Half of American Millennials score below the minimum standard of literacy proficiency. Only two countries scored worse by that measure: Italy (60 percent) and Spain (59 percent). The results were even worse for numeracy, with almost two-thirds of American Millennials failing to meet the minimum standard for understanding and working with numbers. That placed U.S. Millennials dead last for numeracy among the study’s 22 developed countries.

In the old days, our institutions of higher learning had exceedingly high standards and they demanded the best from students.  Today, our system of higher education is a joke, and many of our best colleges are more focused on political correctness and “safe spaces” than they are on preparing our young people for the harsh realities of the real world…

At Brown University – like Harvard, one of the eight elite Ivy League universities – the New York Times reported students set up a “safe space” that offered calming music, cookies, Play-Doh and a video of frolicking puppies to help students cope with a discussion on how colleges should handle sexual assault.

 

A Harvard student described in the university newspaper attending a “safe space” complete with “massage circles” that was designed to help students have open conversations.

We have raised a generation of overly-coddled, self-absorbed boys and girls that have never learned how to become men and women.  They don’t understand how things really work, and they are completely and utterly unprepared for the exceedingly difficult times that are coming.

And since our education system is completely and totally dominated by progressives, our young people have had decades of liberal propaganda pumped into their skulls, and the results are absolutely frightening.

For example, one survey discovered that 62 percent of Millennials say that they are “liberal”, and 42 percent of them say that they are “socialists”.

A different survey discovered that more than half of all U.S. adults under the age of 30 say that they reject capitalism.

If the coming election were to be determined by the Millennials, Hillary Clinton would win by one of the biggest landslides in U.S. history.  But of course she wouldn’t have even been the nominee for the Democrats, because Bernie Sanders would have crushed Clinton.

If something is not done, this is what the future of America is going to look like.

I don’t know about you, but to me that is a rather distressing thought.

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nuubee's picture

I actually don't believe the number is that low. from my perspective it's much higher.

bamawatson's picture

and more would move sponge off relatives; except --- the relatives are also Broke

MillionDollarBonus_'s picture

Have any of you considered that Millenials might be voluntarily choosing this lifestyle? Maybe they're sick and tired of seeing capitalism destroy lives and create glaring inequalities, and they're simply refusing to participate in the system. Maybe the 'system' needs to be overhauled and transformed into something more compassionate before Millenials become part of it?  

VinceFostersGhost's picture

 

1 In 5 Young Adults Live With Their Parents Or Grandparents

 

I just realized.....YES WE CAN!!!

SamAdams's picture

I think it may have something to do with complacent and gullible baby boomers, but maybe that's just me....

svayambhu108's picture

I think the number would be higher but the rest of the families either are disfuctional or cannot afford that.

l8apex's picture

Where does this "capitalism" system exist?  I have yet to see it in my travels...

JRobby's picture

A choice to move to a commune is what you are describing MDB.

Nice try.

RE bubbles make commune living harder to pull off.

 

SweetDougisaTwat's picture

Ha ha.  ". . . voluntarily choosing . . . ."  Ha ha.  Ha.

 

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) nuubee Aug 17, 2016 9:20 AM

Some of them decide to move out and live on their own.  So they shack up on Craigslist with 10 other people in a 1 Bedroom apartment #Independence

LadiesLoveCoolJames's picture

Fucking losers should learn to trade stocks and bonds like the hard working and patriotic Americans that frequent Zero Hedge.

SenselessPanic's picture

bury your parents for profit

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) SenselessPanic Aug 17, 2016 9:19 AM

A lot of them bury the parent in the backyard and continue to cash the SS check...

Stuck on Zero's picture

Parents: Name your kids with your name exactly so that they can cash the SS checks wihout a problem.

JRobby's picture

"No Country For Old Men" 

You forgot the dog collar.

Urban Redneck's picture

You don't have to kill your parents to profit, and in fact you could probably come out ahead keeping them alive, unless your trust fund/inheritance is eight figures and you have some funky return assumptions in your time value of money discounting. For example:

I have two grandparents that when they hit 97/98 years old a couple years ago it was time to take away the car keys and convince them to move out of their house. The choice came down to:

Option 1) move into the old folks home/death factory, at cost of several hundred thousand per year, and there is a shocking correlation between actual life expectancy and cash burn rate.

Option 2) sell the house in Florida and move in with relatives.

In addition to the cash flow from monetizing the house, there is also the cash flow from the Social Security Administration to 2 people who have been paying in and warning about unsustainability since FDR launched the program - so basically more than the median US household income even before the defined benefit pension that's been paying since before Alan Greenspam started devaluing the dollar in earnest.

Fortunately no one my family is starving and we have properties with room and rooms to spare. But the situation is likely to be different in a generation (when I and my younger siblings could be figuring out what to do with headstrong independent centenarian parents) because 1) Uncle Sam's handouts/wealth transfer mechanism probably won't be so generous and 2) the offering of the death-for-profit/retirement home industry are likely to be less attractive by virtue of shrinking and impoverished customer base.

Uncertain T's picture

.... and #3, inflation will be so bad that a new F-150 will cost $450,000

JRobby's picture

GOV will bail out the assisted living industry once all the small operators are cleaned out leaving only the big corps. 

Kirk2NCC1701's picture

"bury your parents for profit"

Is that you, George Soros?

MFL8240's picture

And this same group will vote for Clinton so plan on more of the same!

onewayticket2's picture

...but she promised them it would be "free".....

(meaning they're both in deep debt from their education and received no asset (education) from their 'education'....)

 

JamesBond's picture

I've tried to get a handle on college student debt.  My experience has been that those students with IQ's above 125 and who have strong contientiousness get presidential or foundatonal scholarships.  Kids with IQ's of 115 to 125 usually qualify for the state scholarship program if they also have a good work ethic.  Stupid, poor students get a free ride with Pell Grants. So that leaves the students with IQ's between 90 to 110 (students with B, C, and D averages) and whose parents are working class and don't meet Pell Grant eligibility.  So, it's those students who are racking up the college loan debt; the future middle-classers.  

 

jb

chunga's picture

According to these types of stories, and there are many of them, the number of old-timers that move in with their kids is zero.

847328_3527's picture

Kids won't have them for one. Most kids move across ocuntry or overseas to avoid their parents.

QQQBall's picture

Old-timers are too smart to move in with with morons

chunga's picture

I suppose. It could also be the attitude that once was leave shit better for the next generation is now mock, ridicule and blame the next generation for one's own massive fuck-ups. What they have to deal with now is a deeply entrenched society based almost entirely on fraud mainly run by boomers.

 

I should learn to say out of these millennial bashing threads because all I like to do is agitate. My label is gen-x and we've got two millenials that aren't morons at all. I never hear generation bashing from them towards old fogies but the other way around...all the fucking time.

Jack's Raging Bile Duct's picture

Yeah, they are certainly getting old.

Bash a generation that allegedly knows nothing because they were taught nothing. Born into crippling debt they never chose and graduated into an imploding FIRE economy that had any meaningful production outsourced by their elders. What debts they did take--student debt, they are chastized for despite never being taught math and constantly taught that a college diploma is not only gaurunteed success--but the only path to it. Nevermind the balloon price, just do it. Derided for being soft while being bred, weaned, and reared on the most leftist brained-dead value system ever known, taught by Statzi administrators in the prisons that their "schools" are stark reflections of.

Right now its so posh to bash a new generation of of very young people who are struggling to for the first time take control of their lives in the most economically adverse time since the 1930s under the most tyrannical, burdensome, and oppressive government North America has ever seen. They're being blamed for a world they didn't fucking create and for lacking the tools, culture, and opportunities which had already died 20 years ago.

It's getting pretty fucking old. Reap what you fucking sow, assholes. A failed nation. A failed generation. Born into your debts and decay and abandoned to a broken system so you could live in IKEA. When the reset happens, member of my peer group are going to have to pick up the ashes. Guess what, they're going to be yours.

actionjacksonbrownie's picture

Well when i was a youngun', I started out with a low paying dead end job, but I couldn't wait to get out of the nest and spread my wings. So, along with a friend, we got cheap apartmentment and worked and partied and had great time enjoying our new-found and long-awaited freedom. Today's youth seem more interested in bilking their parents for every penny they can scrounge - including living rent-free at mom's and dad's expense for as long as the gravy train keeps the free ride going.

Sam Clemons's picture

They learned it from the boomers. The ones that got us into this mess being asleep at the wheel unless it meant more SS entitlements.

rejected's picture

Asleep at the wheel? Could you expound (means a better description) on that or is that the best you can do.

As for SS, At least we paid for our 'entitlement'.  We had real jobs, making the best products the world has ever seen.  We didn't take out loans we never intended to repay,,, take EBT cause we spent all our student loan money.

Millennials voted twice for Obama hoping for free shit, got Obama Care. Many get their premiums paid by Uncle but have to get Mummy and Pops to pay deductible's. Better hope they don't die off soon.

crazzziecanuck's picture

No, your generation looted FICA taxes and folded them into general government revenues and then SPENT IT ON YOURSELVES.  SS is only solvent so long as more is coming in than going out.  There is no "lockbox" as Gore said there was back in 2000.  All that money is spent right as soon as it comes in...

Not only did the Baby Boomer cash in on the wealth of the previous generation, they spent theirs and then racked up the debt on the unborn just so they could live cushy lives in the present.  

Then complain that the next generation is "lazy."  Well, for that, all I have to say is we learned from the best!  We  are the best products the Baby Boomer generation made!  That's where you need to take pride in your work.  Your magnum opus.

JRobby's picture

Obamacare insolvent in less than a year

Sam Clemons's picture

The people that stood idly by when the government began its massive expansion. Nixon closing gold window, Reagan started the deficit spending that has carried on since then growing the MIC and the corporacacy. Y'all didn't care as it offered high paying, low requirement national security jobs paid for by subsequent generations.

If the millennials are all in debt, they paid all the money into your systems. Someone got that money and it wasn't other millennials...the baby boomer professors, board members at universities. Unfortunately none of them saved the lagresse so never leave their job so someone with more energy can take over.

CheapBastard's picture

I used to feel sorry for some of my professors thinking they were eating dog food and lived in trailer homes.

 

Until...

A summer or two ago I called one to see how he was doing only to discover from his maid he was at his $1.4 million condo in Vail, but from there would be summering further in the hills of Tuscany.

Solosides's picture

If you cannot see what the inflation, from the last 10 years, has done to the younger generations, you are suffering from extreme brain damage.

actionjacksonbrownie's picture

Okay you want to talk inflation? I started working full time in 1979 and earned $3.50/hr. working 37 hours/week. By 1983 I was earning $4.50/hr. and only 30 hours/week due to shriveled economy. I still was able to support myself with zero outside help. Anyone who didn't live throught the inflation of the 70's/80's, has never seen REAL inflation.

JRobby's picture

Not sure what imbecilic fucks are down voting you? You could live really well on $30k a year in the 70's. 

Now rent would eat up half of that.

The Gun Is Good's picture

While we are child-free by choice (YEAH!!! [Sorry... mini-celebration every time I say those words...]), I am shocked by the thinking of some of my friends. One in particular chided her mom when she (mom) moved away to Colorado. My friend was shitty because: there went her free babysitter, and my friend as much as said so outright!  Sad... talk about entitlement mentality, when new parents *assume* their parents have a duty to help them raise their grandkids.

RougeUnderwriter's picture

I Like living in mom's basement. She makes good meatloaf and does laundry :-)

 

Son of Loki's picture

Throw in a dehumidifier and it's a good deal!

The Gun Is Good's picture

And a working floor drain means you don't even hafta go upstairs to take a piss!

TalkToLind's picture

Nooo, don't you goyim understand?  A stong family unit is a bad thing!  We need weak family units so that you sheep can be moar easily manipulated.  

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) TalkToLind Aug 17, 2016 9:22 AM

A strong family knows how to keep their mouth shut about what the rabbi does to their kids

Kirk2NCC1701's picture

You DO know how the Mohel removes the foreskin during the Bris, don't you?

"In Ultra-Orthodox Jewish ceremonies, after removing the foreskin of the penis, the practitioner, or mohel, sucks the blood from the wound to clean it."**  True.  Not kidding.  Aside from being perverse, the mouth is extremely unhygienic.  Sick fucks!

If this were to occur in any other culture or religion (other than in Saudi Wahhabi Islam perhaps), then people would go straight to jail.  But Self-Chosenites get a free pass on this also, like on everything else.

"If you want to know who rules over you, find out whom you may not criticize"

** Reference: http://failedmessiah.typepad.com/failed_messiahcom/2012/03/christopher-h...

DuneCreature's picture

I'll give you a +100 for not pulling any punches. .... You know, considering the avatar and all.

That religious cult shit is pretty fucked up. ... I just keep stuff rinsed off myself.

Live Hard, Try Not To Piss Off The Shaman You Never Know What Kind Of Bad Juju He's Got In That Pouch Around His Neck, Die Free

 ~ DC v2.0

JRobby's picture

Primarily to turn the child into an aggressive psychopath well suited for financial and negotiation types of professions.

Collectivism Killz's picture

I am sure Tradingislife is well aware of the Rabbi's tendency to suck 8-day old baby dick. Afterall, would you expect any different from God's chosen people? Hey, at least the Hassidim don't use white phosphorus in the babies like they would if they were Palestinian.

css1971's picture

Hark.. Can you hear The Call of the Krugman!

 

MOAR DEBT! Get out there and SPEND! You PUSSIES!

MOAR!

MOAAARRRR!

 

p.s. Young people are always all socialists until they pay their first tax bill.