Americans under 40 now have more money than ever before, but they feel “economically vulnerable,” according to a Treasury Department report.
the study released by the department The median wealth of Americans ages 25 to 29 will increase to more than $80,000 in 2022, an increase of more than $50,000 since 2010, according to Wednesday's survey.
The report found that the household balance sheets of young Americans have been stagnant for years and have not recovered since the 2008 recession. But after the coronavirus pandemic, median wealth for this age group surged more than 140 percent, “reaching an all-time high.”
“The sharp increases in wealth from 2019 to 2022 were broadly based on education, income, and racial groups,” the ministry revealed.
While wealth increased, so did debt. Since 1989, student loan debt has increased “nine times” as more people attend college and tuition costs soar.
“Empirical evidence shows that student loan debt delays household formation, lowers homeownership rates, reduces enrollment in graduate programs, and inhibits employment in the civil service,” the department said. said.
Compared to their parents' generation, today's young Americans are more likely to live with their parents and less likely to get married or have children.
The ministry noted that while some of the changes measured in the survey over the past 30 years have been positive, such as increases in women's incomes, other changes have been neutral.
“A number of changes are contributing to a growing sense of economic vulnerability among young people,” the ministry said.
Young people and Americans alike say they are concerned about the negative effects of climate change and the impact of unsustainable fiscal policies on their retirement savings.
This study highlighted the aging of the American population. Young adults will be competing with baby boomers, especially for housing and high-paying career opportunities.
The ministry said the government should not try to return to the 1990s economy, as that would “erase” many of the gains made over the past 30 years.
The government should coordinate measures to “address the unique challenges” facing young Americans today, including investments in housing, child care, health care, and work opportunities, all of which the report says said it was an initiative that would see an immediate impact.
