11/21/2017

Millennials Are Set To Be The Most Unequal Generation Yet

How the cost of education impacts this generation more than its predecessors

In an economic climate where the top 1 percent own half the world’s wealth, a new analysis by Credit Suisse suggests that Millennials in several advanced economies are likely going to face the worst income inequality of any generation in recent memory. The report, which focuses on the U.S., Germany, France and Spain, shows that Millennials are generally saddled with more student debt, less inherited money and stricter mortgages than previous generations. At the same time, a lucky few are set to become spectacularly wealthy, widening the already large gap between rich and poor. Why?

College rewards a select few
Millennials, unlike prior generations, are disproportionately burdened by student debt. As of 2013, 37 percent of Americans in their 20's had some student debt, making up close to 20 percent of their total debt holdings. What’s more, members of the class of 2015 owe, on average, around $35,000, about twice the amount (paywall) of their counterparts two decades ago, after adjusting for inflation.

College education has gotten more expensive—from 1963 to 2013, the average price of college more than doubled, adjusted for inflation—but Millennials are also more likely than their parents to go to college, which means, on average, they take on more debt.

Please click here to read the complete article from Quartz.