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Will the Middle Class Have Room for Baby Boomers' Kids?

Posted: 09/15/10 12:40 PM ET

Watching our kindergartners engaged in a game of musical chairs, we nudge them along mentally, past the gaps, hoping they end up in the right place, at the right time.

The music stops. Ten kids scramble for nine chairs. Nine land safely; one panic-stricken kid is left standing, squeezed out of the game. When it's our kid who has no place to sit, our hearts break just a little.

And so we baby boomers watch, with trepidation, as our grown children scramble for their spots in the middle class, with its tricky dance steps, its new rules, its ever-dwindling number of chairs. We observe their progress, nudging them forward, helping where we can, hoping they're in the right place, at the right time.

If they're lucky, they approach the game with all the basic tools - a solid upbringing, an adequate education, a firm work ethic, a pocketful of emotional intelligence, a head screwed on straight.

Getting a toehold

Maybe they are fortified with degrees from good schools. Maybe they are ambitious, or charming, or lucky. Maybe they know somebody who knows somebody with an employment opportunity. Maybe they are blessed with perfect timing.

Or maybe they are just more resumes in tall stacks on the unoccupied desks of people who were downsized -- more college graduates with big student loans and big dreams on hold, struggling to get a toehold in the world.

They piece together part-time jobs that may, or may not, turn into something bigger. They work outside their fields. They roll with the punches -- downsizing, pay freezes, unpaid furlough days. If they are fortunate, they accept bare-bones health insurance grudgingly bestowed up them by tight-fisted employers; if they are not so fortunate, they pay for their own insurance, or go without it. They scrape. They stay alive.

A different script

We've been inclined, for some time now, to wonder if our children will ever duplicate our standard of living -- a standard built on steady, if unspectacular compensation, good health, rising real estate values, and the prudent use of readily available credit.

We rose above our parents, economically, following the script of the American Dream. Is that still a viable model? Will the next generation rise above the previous one? Mounting evidence says it won't.

Everywhere you look these days Arianna Huffington is talking about her book, Third World America, in which the Huffington Post creator lays out a convincing case for the disappearance of the middle class in this country.

Huffington is hardly the first person to notice the growing gulf between rich and poor, and the erosion of the middle. Consider just one piece of the crumbling puzzle: A record 2.8 million U.S. households got foreclosure notices in 2009, and the wreckage could be even worse this year.

Will our children own their own homes? Will they find jobs, and keep them? Will they be able to give their children the advantages they, themselves, enjoyed? Will they figure it out? Will they find a chair when the music stops?

Email John Schneider at jschneid@lsj.com.

This post originally appeared on September 12, 2010 in the Lansing State Journal.

 
 
 
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07:29 PM on 09/21/2010
My parents are (divorced) boomers, I'm the tail-end of Generation X. My mother owns a home in a very nice neighborhood in one of the most expensive suburbs in the country. My father owns a few homes. They have health insurance, stable jobs, and retirement savings.

I rent in the (relatively speaking) nicer area of a city that was often featured on "COPS" and periodically get the windows of my 10-year-old used car smashed in. I paid my student loans when I graduated with a 4-year liberal arts degree a decade ago, but the "career" in Human Resources I fell into never worked out - I was laid off 5 times in 8 years due to the bumpy economy. I'm currently going to nursing school paying for COBRA and feel very lucky that I had enough savings to do so. I'm married but don't have any children, I couldn't afford that anyway.

So yeah... I don't think I (and countless others) live in the same charmed America that my parents grew up in.
02:51 PM on 09/21/2010
BOOMERS OWN THIS MESS.
http://www.zerohedge.com/article/guest-post-two-decades-greed-unraveling
This user has chosen to opt out of the Badges program
11:17 PM on 09/17/2010
One hard fact is that Boomer kids will be far better off once Boomers have "moved on", though it won't feel that way, as no matter what happens, the future is less abundant than the past has been.
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HUFFPOST SUPER USER
jamenta
There are other human values besides greed.
10:34 PM on 09/15/2010
Incoming mobility is dropping - and that goes both ways: while those who are poor or born into poor families are now less likely than ever to climb their way out, those who are rich or are born into rich families are also less likely now to lose that wealth.

Poverty is also on the rise in this country. And we now have the most concentrated wealth and the worst wealth inequality in the history of our country - not even the gilded age of the robber barons compares. 1% of Americans now control more wealth than 95% of all other Americans combined.

And it isn't that Americans haven't produced wealth these last few decades. In fact a recent study has shown we are still the most wealthy country in the world, despite what right winger propoganda will have you believe in regards to our current debt. The problem is - the massive amount of wealth is now unfairly and immorally concentrated in the hads of a relatively few, while the average working American hasn't had a real pay raise since 1974 - the most wealth have tripled their income since then.

As the American dream is being crushed by the Elite class in this country - very real class warfare IMO that they have been waging - we all suffer, including our children and their own hopes and dreams for a better life.
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HUFFPOST SUPER USER
spinotter11
Spinning through life and trying to understand it.
10:50 PM on 09/16/2010
You say "unfairly and immorally concentrated." What do you consider fair and morally justified, in terms of income disparity? Where was that written in the rules of capitalism? Is it not a system that provides survival of the fittest?
07:13 PM on 09/15/2010
What I describe below in a simple manifest is ONLY way too stop the destruction of America..
Without applying all we are doomed.. some left, some right politically.. but bottomline need everyone of these too happen if we are too survive as a nation!

* Cut the military spending in half.
* "Cut and Run" in the middle east, Korea, Japan, Europe, etc.
* Eliminate welfare of all kinds for able-bodied, able-minded people.
* Pass a constitutional amendment to force a balanced budget.
* After the amendment, raise huge new taxes on fossil-fuels.
* Cut corporate income tax rates to Irish levels (12.5%).
* Raise the age of eligibility for Social Security and Medicare to 70.
* Impose reciprocal, structural trade barriers on "cheater"
nations like China and Japan.
* Increase legal immigration and punish illegals with near-slavery
(we'd have to give them about 12 months of warning first).
* Tort (lawsuit) reform.
* Restrict the power of labor unions.
* Break the balls of Wall Street. Give them Canadian-style regulation.
HUFFPOST SUPER USER
Twohairydogs
My micro-brew is empty
07:30 PM on 09/15/2010
How about restrict the power of lobbyists and campaign financial reform?
07:13 PM on 09/15/2010
Dear John:

Of course they won't. That's the whole point in today's politics... isn't it? Separate those sniffy, clean rich from those "nasty, unwashed, scrounging-for-jobs poor"...isn't it? (And make it as difficult for the working-poor, Middle Class to get a leg up as possible--right?)

To wit: my bank: Bank of America for 30 years. Who this month began charging "fees" on former free checking and savings accounts. You just have-ta keep a set amount in those accounts to absolve those "fees." Who in the name of God's-Green-Earth, on Unemployment, can "keep a set fee" in their checking account (forget Savings...who in Chr!st's name has savings when every cent goes toward mortgage, meds, food...?)?

Sickening. Destroying. Unbelievable.
06:59 PM on 09/15/2010
One of the largest transfers of wealth is about to happen when the baby boomers start dying. Their kids will be just fine!
07:29 PM on 09/15/2010
What in THE he!! are you talking about?
06:48 PM on 09/15/2010
Who Knew?

Much soul searching that has been going on about the deadly events which have been occurring since Obama took office has been accompanied by puzzled expressions and a resigned “who knew” which still hasn't become “we know.” Not so in the case of Susan George, a political scientist and scholar who has been studying the long term rightward shift in American culture that has been underway since at least the 1970's. She knew then, and she knows now.

.In her book on the subject in 2008 “Hijacking America: How the Religious and Secular Right Changed what Americans Think” she gives a detailed .account of how the belief system of this culture was patiently constructed to permeate all of American society .She reveals in what should be a Nobel or Pulitzer Prize study, the means whereby “Neoliberals” and Neo Conservatives or “Neocons” captured America and subjected them to the deadly policies arising out of belief in the myth of ”the free market.”

The main fallacy which has already destroyed great swathes of the planet and addled the brains of the true believers can be summed up in the following equation::

More Money – Value Exchanges = More Market Growth = More Basic Values

which means that there is no culture superior to the money values of the free market and that the only game in town is turning leveraged money into more money for private possessors with no life standards whatsoeve
HUFFPOST SUPER USER
Over40
10:49 PM on 09/18/2010
Thank you for pointing us to Susan George's book.. I have been waiting for something like this to come out.
The "vast right-wing conspiracy" that Hillary Clinton was ridiculed for talking about is not a myth afterall.
Yes, progressives have been naive to think that the values war was won .... in some things maybe, but not overall by a long shot.
06:22 PM on 09/15/2010
Many of them will recognize the changes technology has wrought on our society and will do very well. They will know that free trade is here to stay and that to be paid more than a Mexican or Chinese they'll have to expertly know how to do more than those others. Some will know to bust their butts and stay away from too much time on video games and bass boats, and they'll know to continuously upgrade their educations and work qualifications for a fast changing and hypercompetitive world. Those people will thrive and be very wealthy. Others will start smoking or become obese, do only modestly well to poorly in school, will have only commodity grade work skills, will lhave children without being married and may use alcohol or drugs to excess. These people will do poorly in an international economy where it will not be good to be a commodity grade laborer and they'll ask those who do well to pay for their shortcomings and vices via government mandated charity that will be far more than their generation will be able to afford.

We are not turning back the technology or international trade clock. The Chinese want to be rich like us, on average and they'll fight like crazy to compete. Are the youngsters in the under 30 generation up to the fight? We'll see. Many will be and others will complain about the unfairness of it all.
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richnerd
62 year-old goat herder
05:44 PM on 09/15/2010
I'm a Boomer who has dropped out once already, been a carpenter and a cement mason, obtained my degree and became an entertainment industry executive and raised for kids and put them all through college at the expense of my retirement. I'm a life-long progressive democrat and an environmentalist. I watched helplessly as Bush destroyed our economy and waged two useless wars. I voted for Obama hoping he would be tougher in bringing change and fighting the forces of the corporatists who are so adept at convincing impressionable and scared fellow Boomers to wear silly costumes and into voting against their own interests and fantasize about "taking back our government".

As impossible as it seems that ordinary Americans could be convinced to believe our President was some kind of illegal alien Muslim Jihadist who was intent on destroying our way of life...it looks like it is actually having an effect. Now I know what scared people are capable of doing, and what they are incapable of doing, like thinking for themselves.

So this middle-class Boomer has bought a large family compound in New Mexico for me and ALL my middle-class kids and my grandkids to safely ride out this storm of ignorance, and the coming Tea Party induced Depression, with solar and wind energy, a self-sustaining farm and ample arms, means, and training to protect ourselves from thieves, Tea Baggers, and Republicans.
05:15 PM on 09/15/2010
Many of the Baby Boomers have an accountability problem. The feel entitled. I'm in the next generation and I just see no sign of sacrifice by them. Now they will have my children pay for their conveniences and of course the changes in Medicare will take care of grandma -- so they won't even take responsibility to their parents. Mr Brokaw -- when's your next book coming out?
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Twohairydogs
My micro-brew is empty
06:04 PM on 09/15/2010
Not true. Sure there are some Baby Boomers who feel entitled but there are plenty of Gen X, Y, Z who also do. Exactly what conveniences for Baby Boomers are you paying for? Social Security and Medicare which has been taken out of our paychecks in increasing amounts as long as we've been working? Healthcare? Messy, we are as much at the mercy of corporations as anybody else. We're squeezed beyond belief. We've watched our retirement funds dwindle and spent much of what's left on college educations for our kids. When we get laid off, it's even harder for us to find a job at any wage. Our houses have no equity. Do you not think these might be sacrifices? With a little help from Medicare, I take care of an elderly parent. Have you checked out the price of care facilities? Should we stick Grandma out in a snowstorm to freeze? Would that do it for you? And by the way,what have you done for your own mom lately?

This economy has been hard on everybody.
07:11 PM on 09/15/2010
Okay -- so you've been paying Medicare --- now it seems the Government will be helping itself to the money you have paid in. And yes I agree we are all squeezed, but I don't think it's the 30 somethings that have a lot of these large houses, etc... that are now underwater. Should you have bought them to begin with? I've been laid off twice and I don't wish that upon anyone -- Democrats or Republicans alike. As for my parents, and my family. I've pay a fair amount of my salary to take care of my elderly parents and a brother who is has life challenges. I would think you'd be afraid of Obamacare and what that means for you and your parent.
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HUFFPOST PUNDIT
hypnotoad72
Real democracy = living wages.
08:23 PM on 09/15/2010
Everybody? Except for those bailed out - and those entities represent the supply-side. The same supply-side that has been marginalizing and eroding the demand-side, then saying they need to be bailed out because "they're too big to fail" because there's no demand LEFT. And the way to make demand is to have living wages.

Abraham Lincoln knew that.

Of course, he's only a President so I'll use a well-known corporate figure: Bill... Whoops, sorry, why would I lie about him? HENRY FORD knew the value of living wages and treating employees right.
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Daphydd
Lets play some music
06:42 PM on 09/15/2010
Boomers who have paid into social security their whole careers deserve to have that money returned to them as benefits. Its easy to make SS solvent far into the future with very small adjustments, and it will have no problem paying benefits until 2037. So, you really don't have to feel burdened, or worry about your children.

Many young Republicans seem to believe the best scapegoat for their fears about the future is the boomer generation, without any explanation. They just call them "entitled". SS will be there for you, and you are entitled to all of the money you are able to save in your career from SS as benefits, or as your retirement savings.
07:05 PM on 09/15/2010
Actually it's my fault in that I didn't mean to include SS as "entitlement". You have paid into that and it's owed to you. I don't believe it will be there for me and I doubt most of our young workers think so.
05:01 PM on 09/15/2010
I'm in that strange age category where I'm not really a boomer and not exactly a child of boomers - However I am happy to report I do have a good job if not my own home. My brother also has a good job and is a home owner. Are we better than our parents - No we are not. My dad had an excellent education with an excellent income from his choosen profession. My brother and I both attended college but have had more of a struggle finding our professional nitch. However, we are both doing well and have hopes that our children will have even more success.
HUFFPOST SUPER USER
Twohairydogs
My micro-brew is empty
05:01 PM on 09/15/2010
Don't forget that every generation defines itself. I chuckle at the despair my parents and grandparents expressed about those "dam hippy drug gie" baby boomers. And yet, we're just fine. The kids coming up today are having it hard but they too will be fine. Probably the worst thing is the load of debt many of them are carrying at such a young age and most of it just to get an education.

If my kids are any measure, this generation will definitely do things differently. They are not going to be the wage-slaves their parents are. The fear of losing their jobs is the norm not the exception. There isn't any security. I think they will try to spend more time with whatever kids they have rather than beaver 60 hours/week in a cubicle for an employer that will probably lay them off anyway. I think we'll see more shared and multi-generational housing situations. If our kids buy houses, it will be because they want to a dog and the ability to play their music loud....not as an nest egg investment.

As the baby boomers are based in a different reality than those who grew up in the Depression, so will our kids be different.
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HUFFPOST SUPER USER
chrisr266
And in the end, the love you take ...
06:46 PM on 09/15/2010
I'm with you on this one.
04:54 PM on 09/15/2010
For those that think that some form of tax cuts aren't the answer. Government at all levels spends over $6 trillion per year in the US. That is close to $60,000 per household. If that isn't enough then how much is enough? Is what we get for that huge amount of money a good value? I would love to hear someone who thinks that they can justify that kind of spending and what we get from it. Most of what we get that people think government needs to do costs fractions of that amount.
HUFFPOST SUPER USER
Twohairydogs
My micro-brew is empty
06:14 PM on 09/15/2010
WOW! Considering what I pay in for taxes, I'm getting a pretty god ROI. But your numbers do seem a little fishy. Do you know how much it costs to pave one street? How much the government...local, state, federal...spend towards education? And remember, all that money is actually spent in the US. Why don't you try posting some links to all these funny numbers you spew. And please, don't be self-righteous about it.
06:25 PM on 09/15/2010
i for one would be glad for my share of taxes to be for a much smaller share of the military.

can we get some of the corporate welfare back?
04:52 PM on 09/15/2010
The baby boomer kids and grandkids can never have the luxuries in life that this generation has enjoyed because the next generations are the ones who will eventually have to pay for our entitlements.
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HUFFPOST PUNDIT
hypnotoad72
Real democracy = living wages.
08:26 PM on 09/15/2010
Mostly because of the devaluing of wages... because somebody at the top, who thinks "trickle-down" is a viable economic paradigm, never bothered to trickle down, whittled down wages, destroy small businesses with "price wars" (come buy here with our "low low prices!", etc), and then whined they shouldn't be allowed to fail because they are "too big". Well, guess how they got to be too big? By slaughtering the competition and driving down workers' wages.

It's time to think about the so-called "entitlements" for those at the top.

And why does our government keep subsidizing them with taxpayer money? That's been going on for DECADES... http://www.ctj.org/html/corp0402.htm