In relative terms, millennials are losing to their counterparts in the past.
An income calculator from The Guardian visualizes the data, letting young Americans see how far they’ve fallen.
“Compared to the national average, you are poorer than most people of your age in the past,” the calculator notes for millennials altogether.
The youngest millennials are the worst off. In 1979, the average American 20 to 24 years old had average incomes 10.1 percent below the national average. Today, it’s 31.5 percent below the average.
For Americans 25 to 29 years old in 1979, their average income was .6 percent above the national average. Now, it’s 7.1 percent below the average.
For Americans 30 to 34 years old in 1979, they were 3.6 percent above the national average. Now, it’s only 1.4 percent higher.
The winners of those economic changes have been the older generation. Again, the baby boomers come out on top.
That American wages have stagnated for most workers isn’t a new revelation. The news comes with two glimmers of hope, however.
For millennials 25 years old and above, they’re better off in absolute terms. Millennials between 25 and 29 years old have $1,274 more in disposable income compared to 1979, and millennials between 30 and 34 years old have $3,105 more compared to 1979. Only the youngest millennials have seen an absolute decline, $3,389 compared to 1979, which reverses on average as they age.
The data ends in 2010, but the trend doesn’t show signs of slowing. Under President Obama, young workers have had a tough time regaining their relative loss. In some ways, it might have gotten worse during the last six years under Obama.
American millenials should remember that it could be even worse, though; they could be European. Their European counterparts have much higher unemployment rates unless they’re German or Austrian. Relatively speaking, European millennials (except Italians) haven’t seen such drastic declines in their societal position, but their future prospects are weaker.
What’s worrisome is that indicates the solution isn’t an easy policy tweak. Young workers across North America and Europe have suffered, which hints at the changing economies of many countries. Lowering tax rates or using government as a shortcut to fix stagnation, it seems, won’t be the solution to the difficulties of youth.
