The American Association of Young People Blog

The Generational Gap

There is a conflict looming in the future of America – and no, I’m not talking about the impending duels between Kid Rock and rocker Tommy Lee, Kanye West and 50 Cent, or the hazy notion of an invasion of Iran (or North Korea, or any other future member of the ‘Axis of Evil’). I’m talking about a new and peaceful (for now) dilemma that exists purely because of economical differences between young Americans (the 18-34 demographic) and the baby boomers (a group of about 80 million).

Books such as The Coming Generational Storm: What You Need to Know about America’s Economic Future by Laurence J. Kotlikoff and Scott Burns highlight this phenomenon thoroughly with economic facts and studies. Other books such as Christopher Buckley’s Boomsday (author of Thank You For Smoking) do this in a more flamboyant manner, eschewing facts in favor of Jonathan Swift-esque satire where baby boomers commit suicide at the age of 70 to relieve the United States of the economic burden they place on the government.

Though the hyperbole is a little extreme, the point Buckley is making is very real: In 2007, Social Security, Medicare, and Medicaid make up 44% of the $2.7 trillion federal budget. To keep this up, we’re looking at tax increases of 30 to 50 percent by 2030 (Newsweek, Apr. 16, 2007).

The AARP, the nation’s largest lobbying group, lobbies on behalf of its roughly 37 million members. Since 2002, it has spent more than $88 million lobbying Congress for retiree benefits. Though the AARP would have you believe it wants the best for both workers and retirees alike, reality dictates you can’t have your cake and eat it too.

Meanwhile, outside of possibly increasing our future tax burden, young Americans are already accruing debt at a historical pace. The median home price has gone up by 26% in the past five years while young adults’ income has gone up about 10% - meaning young Americans “are playing an endless game of catch-up.” (Generation Debt)

Not to mention the more than $450 billion dollars in outstanding student loans that young people.

These very simple economic differences between the young generation (18-35) and the baby boomer generation highlight just one of the reasons the American Association of Young People is important – our voice needs to be heard, and so far, we’re one of the only ones speaking up.