Income Inequality Continues to Expand

The difficulties for those in the younger generations to generate wealth are consequences of a structural shift in the U.S. economy in the last forty years, well before today’s late Boomer and Gen X parents entered the labor market as twenty-somethings. As highlighted in a recent Federal Reserve Bank research paper, “Market Power, Inequality, and Financial Instability”, Isabel Cairo &…

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Economic Inequality & Generational Disparities Could Equal Deepening Divisions

In the 2009-2019 decade following The Great Financial Crisis, the top 5% experienced the greatest income increase of all Americans, further widening income disparities between the top and everyone else. Contributing to the wealth gap, during the same 2009-2019 decade, Millennials racked up nearly $893 billion in student loan debt to purchase college degrees as they chased economic prosperity, further…

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More Fiscal Reckoning for Public Colleges

In 2019, average state funding per full time college student was still lower than the 2009 levels, the beginning of The Great Financial Crisis. Given projected reductions in state revenues for 2020, higher education leaders will likely again experience reductions in state subsidies starting this fall, as we discussed earlier. Students would be wise to understand how reduced funding may…

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Fiscal Reckoning Dead Ahead

The $14 Billion bailout for U.S. colleges and universities as part of the recent CARES Act will not solve the widening financial deficits in higher education. Costs to maintain buildings and the physical grounds, despite the lack of students present on campus, as well as salaries to faculty and staff must still be paid. Additionally, many university officials also spent…

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More Economic Difficulties for Gen Z and Millennials

Graph courtesy of The Wall Street Journal Current college students, many who find themselves at home though would rather be finishing their school year on college campuses around the country, will be confronting along with their older colleagues who graduated college in 2019, 2018, a possibly more complicated problem that of protracted unemployment. In addition, the long term economic outlook…

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