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'Boomerang Generation' hurts the economy

Commentator Todd Buchholz says young adults who return home to live with their parents are sapping the economy of needed vitality.

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Kai Ryssdal: A survey not too long ago from the Pew Research Center found most young adults 25 and older living with their parents were satisfied with the arrangement.

Commentator Todd Buchholz says that may -- or may not -- be great for families. For the economy, though, definitely not.


Todd Buchholz: Years ago on TV stations across America, the late evening news began with a question: "It's 11 o'clock. Do you know where your children are?"

I'm happy to say these days, most of the little kids are home tucked in their beds. Unfortunately, a lot of the older kids -- the 20-somethings -- are asleep on the sofa in the basement.

Call them "Boomerang Kids" or "Generation Y Bother," but young people today are 40 percent less likely to leave their home state than prior generations. In the most startling behavioral change among young people since Marlon Brando started mumbling, an increasing number don't even bother to get drivers licenses.

Sure, there are great things about families sticking together. The children can set the DVR, mom and dad can foot the cable bill.

But geographic mobility creates economic mobility.

Last month I was addressing a conference in San Antonio. A Florida engineer asked me what her stay-at-home, unemployed college grad should do. I asked: "Does he have a mortgage?"

"No."

"Spouse?"

"No."

"Kids?"

"No, Joshy graduated a few years ago."

"Then tell Joshy to grab a cheap flight to Fargo, N.D. The unemployment rate is 3.9 percent. Joshy will nab a job as soon as the captain turns off the fasten seat belt sign."

I'm not saying that our miserable job market will be cured by doling out drivers licenses, but I am worried that an aversion to risk has crept into the psyches of our young people. Perhaps it's from overprotective parents who drive their Little Leaguers to first base in the minivan. Or maybe it's a lingering cloud of hopelessness despite the "hope and change" bumper stickers. But it's not healthy.

And governments make matters worse by setting up roadblocks. Almost one in four jobs requires a permit from a state agency. And most are not brain surgery! Heck, they're not even tree surgery. Say you want to move to Alabama to become a manicurist, you'll first need 750 hours of training.

We need to encourage mobility among our young people, not stagnation. Sometime the first rung on an economic ladder is hanging just above your parents' sofa-bed.


Ryssdal: Commentator Todd Buchholz was an economic adviser to the first President Bush. He's most recently the author of "Rush: Why You Need and Love the Rat Race." Tell us what you think about anything you hear on the broadcast -- write to us.

About the author

Todd G. Buchholz is an American economist and author. He is a former senior economic adviser at the White House, a managing director of the $15 billion Tiger hedge fund, and an award-winning economics teacher.

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Fudoki's picture
Fudoki - Mar 28, 2012

One begs to differ, it's the corporations that are hurting the economy. Now that all loyalty to employees, pensions, decent benefits, and worst of all the ability to trust that a corporation will even keep its promises to the people who have given it their lives is gone, what would make a person, especially a smart young person, want to sign on? Fear of poverty just won't do it. Sorry to break this to you, but carrots work better than sticks, especially sticks poked into workers' eyes! Today's educated young people are simply not going to be taken in by corporate and employer happy talk. Used to be a move prompted by job seeking resulted in a better situation in the eyes of the employer. Now, an employee that moves across the country can barely get compensated for the cost of the move, and there is no corporate loyalty whatsoever garnered. My brother, now a top manager with one of the 3 largest communications companies in the world moved from Atlanta to Los Angeles to take a job from the world's #2 auto maker, to lead a major development facility. Five months later they decided to close the facility, returning it to Japan. They gave zero notice. They demanded the money they paid for his move and bonus back, since he had "failed to reach his 6 month milestone", and left him in California drawing $800 per month unemployment with two children and a $3,400 house payment... After several years of litigation, initiated by the corporation, my brother was finally made whole, and compensated for the shabby treatment. The treatment of non-upper-management employees is so much worse. I learned to my horror, that this is typical in today's work environment. I've always been a self-employed employer of others. This raw corporatism hurts America and all Americans. No unions, no loyalty, inadequate healthcare, pitiful childcare, and worst of all viewing employees as "expendibles" and not human beings. Why should any smart kid get off the couch, move away from those they love, their support structure and friends, at their own expense, to be totally at the mercy of an entity that would as soon see them dead in the gutter as in a cubicle working 80 hours a week for less than a 1970's minimum wage?? (One must make $16.85 per hour to equal $2.35 an hour in 1970) What goes around comes around, and this de-regulated, social Darwinist, cannibalistic global capitalism has sown the wind and is reaping the whirlwind. How do you think these kids are going to vote? The 18% that buys the propaganda of the 1% don't have the votes to stop what is about to happen, and these corporations need to understand they are reaping what they have sown by treating highly educated and skilled workers as expendable wage slaves, unworthy of the benefits and respect considered a baseline for a civil and ethical business and social environment. This is just not the kind of society most folks want to live in, Americans care about each other, even people they do not personally know. No amount of consumerism and "me-ism", and the advertising and aggrandising of the same, will change who we are - and the change is a-comin'. And not a second too soon...

asseenbyvt's picture
asseenbyvt - Mar 28, 2012

Just out of curiosity...what is the statistic that supports the idea that "1 in 4" jobs requires a license?

sadevito's picture
sadevito - Mar 28, 2012

I suppose if you include every job that requires a driver's license......

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