It is time we recognize the impact that Generation Xers across the globe have had on the Millennials' outlook on life, work, politics, civic engagement, entrepreneurship, activism or culture. Let's not sell our Millennials short. Let's add nuance and perspective to the conversation. Let's burst that bubble, shall we?
It's pretty hard to miss the shampoo cycle -- bubble, bust, repeat -- that has characterized the last few business cycles in the American, and more recently, European and even Scandinavian economies. It's also the case that choice economists since Adam (Smith, of course) have recognized this proclivity towards financial market instability. Thus far in the current expansion that began in 2009Q3, financial markets and corporate profitability have far outpaced the rest of the economy. I'm not saying we're in another financial bubble, though no less than Robert Shiller recently raised that concern. But I'm decidedly saying that unless we enact and enforce tough financial market regulation, that's where we're headed.
Americans are taking out student loans that they can't afford, from lenders who know they can't afford them. Those lenders are re-selling the debt to other lenders, and, as student loan debt increases at a far higher rate than the unemployment rate decreases, more and more of these loans are going unpaid.