The Influence of Economic Policies on Generational Equity and Workforce Opportunities

In recent times, the debate over economic fairness and generational equity has become a central issue, particularly with the recognition that past generations' decisions have had lasting impacts on the younger ones. This article explores how different economic policies and shifts in the workplace have affected the opportunities available to millennials vis-à-vis the baby boomers, and suggests that the primary culpability lies not with the boomers themselves but with broader economic trends and policies.

Do Baby Boomers Steal the Millennials' Economic Future?

There is a popular belief that baby boomers have stolen the economic future from millennials by failing to save for retirement and leaving fewer job opportunities for the younger generation. However, this narrative is misleading, as it ignores the broader socio-economic forces that have shaped the current workforce. A significant contributor to this issue is the neoliberal economic policies that were fostered starting in the 1980s.

The Role of Neoliberal Economics

Neoliberal or supply-side economics, often referred to as "trickle-down" economics, became a prominent force starting with the administrations of Ronald Reagan and George H.W. Bush. These policies aimed to reduce government intervention in the economy by cutting taxes, reducing regulations, and increasing military spending. While the intention was to stimulate economic growth, the impact on workforce opportunities for millennials was significant.

According to a Rand study, if median wages had continued to grow at the same pace they did before 1975 (the period preceding neoliberal policies), a worker making $50,000 in 2018 would have been making between $92,000 to $108,000. This decline in wages is largely attributed to neoliberal policies that favored the wealthy and led to increased inequality.

The Role of Political Leaders in Economic Inequity

Not all baby boomers or political leaders are to blame for the economic disparities. President Ronald Reagan, for example, was a key figure in promoting these policies. His actions included cutting taxes for the wealthy, increasing defense spending, and running up a significant national debt. Reagan also weakened labor unions, which helped to suppress wage growth and manage labor unrest. Similarly, George H.W. Bush reinforced these policies and further destabilized the economy.

These policies were not just embraced by Reagan and Bush; they were later reinforced by economic actions from other political figures. President Bill Clinton, who was part of the baby boomer generation, also played a significant role in continuing these neoliberal policies. This continuity highlights that the policies that have disproportionately affected millennials were influenced by a wider ideological shift rather than individual actions of the baby boomers.

Workers in the 21st Century

The impact of these economic policies has particularly affected young workers. Many millennials entered the workforce with unrealistic expectations, often from the baby boomer generation, who set high standards for entry-level positions. For example, many entry-level jobs required years of experience, regardless of a candidate's qualifications or educational background. This practice has made it difficult for young people to enter the workforce and advance their careers.

Additionally, the surge in college graduates in recent years led to a glut in the job market, diminishing the value of a college degree. This situation is complex, as it is not solely the result of the actions of the previous generation but also due to the broader shifts in the economy and job market. The idea that millennials made poor decisions in pursuing higher education without considering the return on investment is also an oversimplification of the issue.

Blame the System, Not a Generation

The final point to consider is that the blame should not be placed on any single generation or individuals. Instead, the focus should be on the actions of the ultra-wealthy and their political allies. These individuals have used their influence to shape economic policies that benefit them but at the expense of the broader population, including future generations.

The outpouring of wealth has created a system where more people are driven by greed and unrealistic expectations. For example, in Australia, the increase in wealth and investment in assets like homes and retirement funds (superannuation) led to a more competitive environment where people's expectations were based on more than just their basic needs. This mindset exacerbated economic pressures and created a less equitable workforce for millennials.

This conclusion suggests that the issue of workforce opportunities and generational equity is deeply rooted in broader economic and political systems, rather than the actions or attitudes of any single generation. Addressing these issues requires a collective effort to reform economic policies and create a more equitable and sustainable system for all generations.