How Millennials Will Change the Economy
March 2, 2015 4:00pm by Barry Ritholtz
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Uber thx milliennials
As the parent of four millenials, I think it boils down to two fundamental questions:
1. Will they stay single and/or childless in their 30s?
2. Will they remain in the city center if they do have kids?
The answers to these questions will drive many of their future spending decisions.
What happens if the Government starts paying them to squeeze out another?
They already do. Dependent exemption, child tax credit, EITC, child and dependent care credit. Canada used to pay you money if you made babies.
The real question is the percentage that will have kids versus the percentage that won’t. Unless they are fairly well off my thought is that the poor public schools in the city centers in general will drive them to the suburbs if they have kids. (If they can afford private school, then it does not matter as much).
I’m a little bit amused that the millenials, who are massive enthusiasts about Apple products, claim that brand isn’t important, and that price is important….. Hmmmm…..
That being said, @rd, I have 3 millenials of my own, and one of the big things I’m wondering about is housing, which you allude to. We live in Silicon Valley, so we really need a whole bunch of millenials to buy our super-expensive houses from us. But one trend that I expect to pick up steam is the idea that you don’t need to live in SV in order to start up a successful business, because it is too friggin’ expensive for young people to live here. That will certainly disrupt my scheme to sell my house, move to Montana and become a dental floss tycoon.
(Warning, anecdotal evidence time) FWIW, of the handful of Millenials that I know, who have gainful employment, the first purchase they’ve made is a car, the next being a house. I’d say it’s a meaningful trend once all of them finally manage to get decent paying jobs, and that part of what we’re seeing is a generation that’s mostly broke or in debt at the moment.