Wednesday, January 30, 2019

Millennials and Z's don't believe that they will be rich one day and it's a game changer.


After longing for the past two years for someone to move the national debate from Trump's race baiting to more important issues I have been delighted with AOC's tweets.  If you aren't one of the 2.7 million people following her, start now.  She is the voice of her generation.  Ignore her at your own peril.

Her opening gambit was to propose a 70% tax on the rich.

Needless to say that sent the one-percenters and Republicans into a tizzy.  So they trotted out their tired, old, and now thoroughly debunked arguments against it.  Tax cuts for the wealthy create jobs, rich people won't work as hard, it won't raise that much money. Seriously?

But none of those arguments matter.  They never did. 

Americans never bought into those arguments.  They were in favor of low taxes on the wealthy because they believed that some day they too would be wealthy.  (Remember all decisions are emotional.)  They no longer believe that.

Right now the median age in the U.S. is 38.  The generations above that mark - Silent Gen, Boomers and Gen X all bought into the idea that they would be rich someday.

But for the generations below the midpoint something fundamental has changed.  Millennials and Gen Zs no longer believe that they will be rich someday.  Moreover, half of Americans age 25 - 34 say that worrying about money has negatively affected their health. (Gernon, 2017)

For Millennials and Gen Z's, the defining moments of their youth were 9/11 and the 2008 recession.  And the rapid pace of technological advancement and social change have accelerated their fears even more.  Is it any wonder given these influences that they crave safety and security above all? 

Therefore they have no problem raising taxes on the rich to pay for their healthcare.  Or perhaps more importantly to stop global warming before it destroys the world.  And since they are the future, they will have their way.  It's only a question of when.

A Hill/Harris poll fielded this month showed that 59% of registered voters support 70% tax rates for people earning over $10 million a year.  That's 71% of Democrats, 60% of Independents and 45% of Republicans.  (Velencia, 2019)

Maybe the future is already here.


Gernon, D. (2017, August 7)  Half of millennials share two stressful views about money.  cnbc.com.  Retrieved January 30, 2019, from 

Velencia, J. (2019,  January 18)  Alexandria Ocasio-Cortez Wants To Raise Taxes On The Rich — And Americans Agree.  fivethirtyeight.com.  Retrieved January 30, 2019, from https://fivethirtyeight.com/features/alexandria-ocasio-cortez-wants-to-raise-taxes-on-the-rich-and-americans-agree/

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