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Millennial income 20% less than boomers at same stage of life
Millennial income did not recover from the Great Recession like older generations', a disparity that can have dire consequences for future generations.
- A New America report shows millennial income and wealth accumulation lags dramatically behind their parents' and grandparents' generations.
- Resulting from the Great Recession, rising debt, and volatile wealth flow, this imbalance will impair future generations if not corrected.
- The report's authors argue the shortfall can be redressed with comprehensive policy changes.
Millennials are defined by their diversity, but like every generation, they have experiences and milestones they all share.
In their formative years, millennials witnessed the rise of the internet, protracted wars in the Middle East, and a burgeoning political polarization. They ignited the experience economy and shifted the values of American culture. They are more educated than previous generations, yet stumbled into the workforce among the financial gyre of the Great Recession.
That last one has had a profound impact on the shared millennial experience. While the broader economy has convalesced, and Gen Xers have recovered the wealth they lost, millennials continue to lag behind previous generations, unable to find purchase in the financial system that made their parents and grandparents among the most well-off generations in history.
According to a New America report, The Emerging Millennial Wealth Gap, millennials currently earn 20 percent less than boomers at the same stage of life. In fact, millennial wealth accumulation is on track to fall short of their parents' lot. And this imbalance may impair subsequent generations, too.
Millennial income and debt
The Great Recession catalyzed the millennials' poor financial state. Just as the generation entered the workforce, businesses began downsizing, income wages nosedived, and millennials had to compete against an established workforce for fewer jobs. Since then, wage growth has been sluggish and recovery uneven.
But as the New America report illustrates, the recession is hardly the only factor at play. As is often the case, it's a nuance issue with many contributing influences.
For example, millennials are the most educated generation (for now). They have received more bachelor's degrees than previous generations, but that education has come at a cost. American tuition fees have increased faster than wages, with the average annual cost for attending a public four-year university at just over $19,000 (2015-16). At $1.5 trillion, today's student debt has surpassed loans for cars and credit cards, stymieing those who hold it from putting that money toward asset accumulation.
"It is not surprising that the median wealth of all millennials with any debt at age 30 is lower than those with no debt who attended college; however, their median wealth levels are also lower than young adults who never attended college," the New America report states.
Between student debt, car loans, and credit card debt, millennials maintain a higher debt-to-income-and-asset ratio than previous generations at the same age. Importantly, this debt is less mortgage debt and more consumer debt. The difference being that the former later becomes an asset value, while the latter does not.
Add to this debt sluggish wages and volatile income from an increased reliance on gig jobs—which lacks the assurances and benefits of full employment—and the millennial balance sheet has taken a huge hit.
How bad a hit? According to the New America report:
For families headed by an individual under the age of 35, net worth was 41 percent lower in 2016 than 1995. In contrast, households headed by someone over age 75 have seen their wealth rise. The recent growth of net worth among older households has been especially pronounced. It has increased 32 percent from 2013 to 2016, reflecting new growth in the generational wealth gap.
That generational wealth gap is further aggravated along racial lines. The report cites the median net worth of non-Hispanic White households at $171,000, compared to $17,600 for black households and $20,700 for Hispanic households. The authors chose the median because the mean proved substantially higher for all race and ethnicity households, "which reflects the concentration of wealth among the wealthiest in each category."
"Millennials are in a fundamentally different economic place than previous generations," writes Reid Cramer, director of the Millennials Initiative at New America, in the report. "Relatively flat but volatile incomes, low savings and asset holdings, and higher consumer and student debt have weakened their finances. The Millennial balance sheet is in poor shape."
A generation feels the effects
This graph from the World Economic Forum shows millennial income wage growth alongside average student debt.
This flagging wealth accumulation plays out in many of the stereotypes associated with millennials—stereotypes often wrongly attributed to other traits.
The trend of millennials living in their parents' basements has become a threadbare zinger, but there is truth to it. The number of young adults returning home has risen since 1997. Rather than the result of a lazy, lost generation who can't properly adult, the culprit is debt, stagnant wages, and the high cost of living.
Another result is the decline of millennial marriage. One study found a negative correlation between student debt and marriage. Under the financial strain, millennials less likely to embark on marriage and starting a family until much later in their lives. (Though, we should note, decade-long trends like women workforce participation and declines in teen pregnancy rates have also affect marriage rates.)
This wealth gap has also fueled the homeownership gap.
Millennials are less likely than Gen Xers and baby boomers to be homeowners, thanks to rising prices and fewer houses on the market. As the New America report notes, this single factor is perhaps the greatest detriment to millennial wealth building, as the home is often a household's largest asset.
"While the typical homeowner had a net worth of $231,400 in 2016, the typical renter had a net worth of $5,200, making this single variable among the most significant in explaining different wealth trajectories among American households," the report states.
A cascading recession?
Inadequate wealth accumulation is not solely the problem of a single generation. Unless corrected for, it can have a cascading effect that hinders future generations, as parental wealth informs what economic resources can be invested in their children's development.
A study out of the London School of Economics showed a strong causal link between household finances and children outcomes. It found evidence that low incomes prevent parents from investing in goods and services for their children. Additionally, these parents suffer from stress and anxiety, which can have further detrimental effects on their children. The study found that poor children are more likely to have worse education, health, and social-behavioral outcomes as a result.
The New America report also cites large bodies of research indicating that the family economic resources impact a child's human potential and their own economic outcomes.
Redressing the wealth gap
Democratic nominee Senator Elizabeth Warren wants to cancel student loan debt, a potential redress for the millennial income and wealth gap.
The conclusion of the New America report is that the intergenerational wealth gap must be redressed through system-wide policy changes. That's because wealth isn't simply luxury; it's the "key to financial security and economic mobility."
Those with little to no wealth accumulation cannot participate in the economy or society at the same level as their wealthy peers. They lack the tools and resources to reach their full potential, they cannot exercise or defend their rights as effectively, and in some ways basic needs become more expensive when they can be acquired.
The report's researchers cite eight potential responses to repair the millennial balance sheet, as well as examples of what those policies may look like:
1) Promote savings to build up cash reserves
Remove taxes for savings account interest up to a certain amount. Offer bonuses or matches on saved amounts.
2) Reduce the debt overhand
A large-scale cancellation of student load debt. Improve income-based repayment plans. End taxation on forgiven student loans. Make loan repayment a standard employee benefit.
3) Facilitate deposits to retirement plans
Incentivize savings through a government match program. Develop a public-option savings plan for people without an employer option.
4) Increase the supply of affordable rental housing while promoting paths to sustainable homeownership.
Pass laws to increase oversight over the mortgage market. Draft support systems to help people save for down payments.
5) Invest in the next generation's asset development
A government plan that provides every child with a savings account and seed deposit. State-based 529 college savings plans with progressive matching features.
6) Address the rising cost of college and reduce reliance on student loans.
Increase tuition subsidies for low-income students. Improve transparency at educational institutions. Better regulate for-profit educational institutions. More robust support for four-year program alternatives.
7) Promote new sources and opportunities to grow incomes and build wealth
Greater ownership in common assets (e.g., the Alaska permanent fund). Develop a "data dividend" where people are paid for sharing their personal data. More widespread adoption of employee stock and profit-sharing plans.
8) Support family caregiving
Increase and support better paid family leave. Improve income support for low-wealth families. Develop a universal family care system.
These are a few of the ideas offered by the report. But as Reid Cramer points out, the broad idea is to reinforce the pillars of our society to support everyone.
"In order to fashion a policy response to the emerging millennial wealth gap, it is instructive to acknowledge the pillars that historically have anchored the ladder of economic opportunity," Cramer writes. "For some, these pillars were never there at all; for others, they have weakened in the years since the Great Recession."
- Millennials are poorer than their parents - Big Think ›
- Student debt is keeping millennials single - Big Think ›
- How bad is income inequality? Millennials may be the new peasants. ›
- Stress levels affect Gen X the most, study finds - Big Think ›
- Millennials reconsider finances and future under COVID-19 - Big Think ›
We explore the history of blood types and how they are classified to find out what makes the Rh-null type important to science and dangerous for those who live with it.
- Fewer than 50 people worldwide have 'golden blood' — or Rh-null.
- Blood is considered Rh-null if it lacks all of the 61 possible antigens in the Rh system.
- It's also very dangerous to live with this blood type, as so few people have it.
Golden blood sounds like the latest in medical quackery. As in, get a golden blood transfusion to balance your tantric midichlorians and receive a free charcoal ice cream cleanse. Don't let the New-Agey moniker throw you. Golden blood is actually the nickname for Rh-null, the world's rarest blood type.
As Mosaic reports, the type is so rare that only about 43 people have been reported to have it worldwide, and until 1961, when it was first identified in an Aboriginal Australian woman, doctors assumed embryos with Rh-null blood would simply die in utero.
But what makes Rh-null so rare, and why is it so dangerous to live with? To answer that, we'll first have to explore why hematologists classify blood types the way they do.
A (brief) bloody history
Our ancestors understood little about blood. Even the most basic of blood knowledge — blood inside the body is good, blood outside is not ideal, too much blood outside is cause for concern — escaped humanity's grasp for an embarrassing number of centuries.
Absence this knowledge, our ancestors devised less-than-scientific theories as to what blood was, theories that varied wildly across time and culture. To pick just one, the physicians of Shakespeare's day believed blood to be one of four bodily fluids or "humors" (the others being black bile, yellow bile, and phlegm).
Handed down from ancient Greek physicians, humorism stated that these bodily fluids determined someone's personality. Blood was considered hot and moist, resulting in a sanguine temperament. The more blood people had in their systems, the more passionate, charismatic, and impulsive they would be. Teenagers were considered to have a natural abundance of blood, and men had more than women.
Humorism lead to all sorts of poor medical advice. Most famously, Galen of Pergamum used it as the basis for his prescription of bloodletting. Sporting a "when in doubt, let it out" mentality, Galen declared blood the dominant humor, and bloodletting an excellent way to balance the body. Blood's relation to heat also made it a go-to for fever reduction.
While bloodletting remained common until well into the 19th century, William Harvey's discovery of the circulation of blood in 1628 would put medicine on its path to modern hematology.
Soon after Harvey's discovery, the earliest blood transfusions were attempted, but it wasn't until 1665 that first successful transfusion was performed by British physician Richard Lower. Lower's operation was between dogs, and his success prompted physicians like Jean-Baptiste Denis to try to transfuse blood from animals to humans, a process called xenotransfusion. The death of human patients ultimately led to the practice being outlawed.4
The first successful human-to-human transfusion wouldn't be performed until 1818, when British obstetrician James Blundell managed it to treat postpartum hemorrhage. But even with a proven technique in place, in the following decades many blood-transfusion patients continued to die mysteriously.
Enter Austrian physician Karl Landsteiner. In 1901 he began his work to classify blood groups. Exploring the work of Leonard Landois — the physiologist who showed that when the red blood cells of one animal are introduced to a different animal's, they clump together — Landsteiner thought a similar reaction may occur in intra-human transfusions, which would explain why transfusion success was so spotty. In 1909, he classified the A, B, AB, and O blood groups, and for his work he received the 1930 Nobel Prize for Physiology or Medicine.
What causes blood types?
It took us a while to grasp the intricacies of blood, but today, we know that this life-sustaining substance consists of:
- Red blood cells — cells that carry oxygen and remove carbon dioxide throughout the body;
- White blood cells — immune cells that protect the body against infection and foreign agents;
- Platelets — cells that help blood clot; and
- Plasma — a liquid that carries salts and enzymes.6,7
Each component has a part to play in blood's function, but the red blood cells are responsible for our differing blood types. These cells have proteins* covering their surface called antigens, and the presence or absence of particular antigens determines blood type — type A blood has only A antigens, type B only B, type AB both, and type O neither. Red blood cells sport another antigen called the RhD protein. When it is present, a blood type is said to be positive; when it is absent, it is said to be negative. The typical combinations of A, B, and RhD antigens give us the eight common blood types (A+, A-, B+, B-, AB+, AB-, O+, and O-).
Blood antigen proteins play a variety of cellular roles, but recognizing foreign cells in the blood is the most important for this discussion.
Think of antigens as backstage passes to the bloodstream, while our immune system is the doorman. If the immune system recognizes an antigen, it lets the cell pass. If it does not recognize an antigen, it initiates the body's defense systems and destroys the invader. So, a very aggressive doorman.
While our immune systems are thorough, they are not too bright. If a person with type A blood receives a transfusion of type B blood, the immune system won't recognize the new substance as a life-saving necessity. Instead, it will consider the red blood cells invaders and attack. This is why so many people either grew ill or died during transfusions before Landsteiner's brilliant discovery.
This is also why people with O negative blood are considered "universal donors." Since their red blood cells lack A, B, and RhD antigens, immune systems don't have a way to recognize these cells as foreign and so leaves them well enough alone.
How is Rh-null the rarest blood type?
Let's return to golden blood. In truth, the eight common blood types are an oversimplification of how blood types actually work. As Smithsonian.com points out, "[e]ach of these eight types can be subdivided into many distinct varieties," resulting in millions of different blood types, each classified on a multitude of antigens combinations.
Here is where things get tricky. The RhD protein previously mentioned only refers to one of 61 potential proteins in the Rh system. Blood is considered Rh-null if it lacks all of the 61 possible antigens in the Rh system. This not only makes it rare, but this also means it can be accepted by anyone with a rare blood type within the Rh system.
This is why it is considered "golden blood." It is worth its weight in gold.
As Mosaic reports, golden blood is incredibly important to medicine, but also very dangerous to live with. If a Rh-null carrier needs a blood transfusion, they can find it difficult to locate a donor, and blood is notoriously difficult to transport internationally. Rh-null carriers are encouraged to donate blood as insurance for themselves, but with so few donors spread out over the world and limits on how often they can donate, this can also put an altruistic burden on those select few who agree to donate for others.
Some bloody good questions about blood types
A nurse takes blood samples from a pregnant woman at the North Hospital (Hopital Nord) in Marseille, southern France.
Photo by BERTRAND LANGLOIS / AFP
There remain many mysteries regarding blood types. For example, we still don't know why humans evolved the A and B antigens. Some theories point to these antigens as a byproduct of the diseases various populations contacted throughout history. But we can't say for sure.
In this absence of knowledge, various myths and questions have grown around the concept of blood types in the popular consciousness. Here are some of the most common and their answers.
Do blood types affect personality?
Japan's blood type personality theory is a contemporary resurrection of humorism. The idea states that your blood type directly affects your personality, so type A blood carriers are kind and fastidious, while type B carriers are optimistic and do their own thing. However, a 2003 study sampling 180 men and 180 women found no relationship between blood type and personality.
The theory makes for a fun question on a Cosmopolitan quiz, but that's as accurate as it gets.
Should you alter your diet based on your blood type?
Remember Galen of Pergamon? In addition to bloodletting, he also prescribed his patients to eat certain foods depending on which humors needed to be balanced. Wine, for example, was considered a hot and dry drink, so it would be prescribed to treat a cold. In other words, belief that your diet should complement your blood type is yet another holdover of humorism theory.
Created by Peter J. D'Adamo, the Blood Type Diet argues that one's diet should match one's blood type. Type A carriers should eat a meat-free diet of whole grains, legumes, fruits, and vegetables; type B carriers should eat green vegetables, certain meats, and low-fat dairy; and so on.
However, a study from the University of Toronto analyzed the data from 1,455 participants and found no evidence to support the theory. While people can lose weight and become healthier on the diet, it probably has more to do with eating all those leafy greens than blood type.
Are there links between blood types and certain diseases?
There is evidence to suggest that different blood types may increase the risk of certain diseases. One analysis suggested that type O blood decreases the risk of having a stroke or heart attack, while AB blood appears to increase it. With that said, type O carriers have a greater chance of developing peptic ulcers and skin cancer.
None of this is to say that your blood type will foredoom your medical future. Many factors, such as diet and exercise, hold influence over your health and likely to a greater extent than blood type.
What is the most common blood type?
In the United States, the most common blood type is O+. Roughly one in three people sports this type of blood. Of the eight well-known blood types, the least common is AB-. Only one in 167 people in the U.S. have it.
Do animals have blood types?
They most certainly do, but they are not the same as ours. This difference is why those 17th-century patients who thought, "Animal blood, now that's the ticket!" ultimately had their tickets punched. In fact, blood types are distinct between species. Unhelpfully, scientists sometimes use the same nomenclature to describe these different types. Cats, for example, have A and B antigens, but these are not the same A and B antigens found in humans.
Interestingly, xenotransfusion is making a comeback. Scientists are working to genetically engineer the blood of pigs to potentially produce human compatible blood.
Scientists are also looking into creating synthetic blood. If they succeed, they may be able to ease the current blood shortage, while also devising a way to create blood for rare blood type carriers. While this may make golden blood less golden, it would certainly make it easier to live with.* While antigens are typically proteins, they can be other molecules as well, such as polysaccharides.
China has reached a new record for nuclear fusion at 120 million degrees Celsius.
This article was originally published on our sister site, Freethink.
China wants to build a mini-star on Earth and house it in a reactor. Many teams across the globe have this same bold goal --- which would create unlimited clean energy via nuclear fusion.
But according to Chinese state media, New Atlas reports, the team at the Experimental Advanced Superconducting Tokamak (EAST) has set a new world record: temperatures of 120 million degrees Celsius for 101 seconds.
Yeah, that's hot. So what? Nuclear fusion reactions require an insane amount of heat and pressure --- a temperature environment similar to the sun, which is approximately 150 million degrees C.
If scientists can essentially build a sun on Earth, they can create endless energy by mimicking how the sun does it.
If scientists can essentially build a sun on Earth, they can create endless energy by mimicking how the sun does it. In nuclear fusion, the extreme heat and pressure create a plasma. Then, within that plasma, two or more hydrogen nuclei crash together, merge into a heavier atom, and release a ton of energy in the process.
Nuclear fusion milestones: The team at EAST built a giant metal torus (similar in shape to a giant donut) with a series of magnetic coils. The coils hold hot plasma where the reactions occur. They've reached many milestones along the way.
According to New Atlas, in 2016, the scientists at EAST could heat hydrogen plasma to roughly 50 million degrees C for 102 seconds. Two years later, they reached 100 million degrees for 10 seconds.
The temperatures are impressive, but the short reaction times, and lack of pressure are another obstacle. Fusion is simple for the sun, because stars are massive and gravity provides even pressure all over the surface. The pressure squeezes hydrogen gas in the sun's core so immensely that several nuclei combine to form one atom, releasing energy.
But on Earth, we have to supply all of the pressure to keep the reaction going, and it has to be perfectly even. It's hard to do this for any length of time, and it uses a ton of energy. So the reactions usually fizzle out in minutes or seconds.
Still, the latest record of 120 million degrees and 101 seconds is one more step toward sustaining longer and hotter reactions.
Why does this matter? No one denies that humankind needs a clean, unlimited source of energy.
We all recognize that oil and gas are limited resources. But even wind and solar power --- renewable energies --- are fundamentally limited. They are dependent upon a breezy day or a cloudless sky, which we can't always count on.
Nuclear fusion is clean, safe, and environmentally sustainable --- its fuel is a nearly limitless resource since it is simply hydrogen (which can be easily made from water).
With each new milestone, we are creeping closer and closer to a breakthrough for unlimited, clean energy.
The symbol for love is the heart, but the brain may be more accurate.
- How love makes us feel can only be defined on an individual basis, but what it does to the body, specifically the brain, is now less abstract thanks to science.
- One of the problems with early-stage attraction, according to anthropologist Helen Fisher, is that it activates parts of the brain that are linked to drive, craving, obsession, and motivation, while other regions that deal with decision-making shut down.
- Dr. Fisher, professor Ted Fischer, and psychiatrist Gail Saltz explain the different types of love, explore the neuroscience of love and attraction, and share tips for sustaining relationships that are healthy and mutually beneficial.