The Evolving American Dream

[marko]

This article may/may not be under a paywall.

https://www.bostonglobe.com/busines...t-different/ixGfismZ5FeVs44X7H7NSM/story.html

Our former lieutenant governor and past president of Babson College has just taken a job with the Milken Institute. https://en.wikipedia.org/wiki/Milken_Institute

In the interview she states:
“The American Dream once meant having more money than your parents, or owning a house, or owning a car, or going to college. It might mean something very different today,” she said. Healey cites another study conducted by American Enterprise Institute earlier this year showing how the American Dream is evolving and how people value above all the “freedom of choice in how to live one’s life” more than owning a home, having a successful career, or even becoming wealthy.

My take is that this will skew what we currently consider retirement (early or late), stocks, banking, investment and our entire culture.

It also implies that young people are not necessarily avoiding buying homes, cars and college because they can't afford them but instead would rather spend their money elsewhere.

Based upon my own observations of my seven millennial nieces/nephews, I'd say that they do want different things than we did. One niece is spending $25K on an African Safari (she can well afford it) and couldn't care less about owning a home. Another would be quite happy working part time at a low wage as long as he has time to spend hours with his friends in a coffee shop.

Comments? Let's keep the references to Milken's troubles out of the discussion if we can and focus on the subject at hand, ok?

 

[bolt]

To me that position mirrors Billy Bulger's retirement job @ UMass.
Just adding to the pensions.

 

[Chuckanut]

It also implies that young people are not necessarily avoiding buying homes, cars and college because they can't afford them but instead would rather spend their money elsewhere.

I know a number of 20 and 30 somethings who spend their savings on travel often 'adventure’ travel. They are happy to rent a cheap apartment if it means more time and money to travel. It's their choice.

 

[Teacher Terry]

My kids have no interest in owning a house. They value travel and freedom. My step son bought his house at 18 when the market was down. 10 years later it’s worth much more. My husband’s kids want a more traditional life than mine. My youngest went to Vietnam a year ago to teach English which he had talked about doing for years.

 

[JoeWras]

“freedom of choice in how to live one’s life”

This is great, and I hope the kids lead this charge.

Unfortunately, their leaders seem to be more interested in taking away choice. But I'll stop there.

 

[OldShooter]

I don't really have a position on the question, but it occurs to me that basing this type of conclusion on observations of the people we know or that we know of is probably unconsciously biased. I think the slice of the population we "see" is not representative. Remember, something like 60% of Americans don't pay any income tax at all. Their "American Dream" is probably more about survival than about special "experiences."

 

[Scuba]

The young folks I know feel this way until they get married and have children. Then home ownership becomes more important to them.

 

[Teacher Terry]

My 3 are skipping kids and I doubt this will change as they range between 38-46.

 

[Mdlerth]

Carpe diem... or not. It's all good

Based upon my own observations of my seven millennial nieces/nephews, I'd say that they do want different things than we did. One niece is spending $25K on an African Safari (she can well afford it) and couldn't care less about owning a home. Another would be quite happy working part time at a low wage as long as he has time to spend hours with his friends in a coffee shop.

Based upon my own observations of both my own children and my innumerable millenial nieces/nephews, I agree.

I also agree that, as a group, they're all over the map. Some are highly educated professionals with advanced degrees who work hard, earn a lot, sacrifice as needed and are building a solid financial future.

Others are low-wage, have-fun-today types. Not my cup of tea, but I love them no less for being different. Also, I suspect their lifestyle choices aren't due to randomness or low ambition; they're a deliberate rejection of the hamster-wheel existence which many of us endured in pursuit of our generation's version of the AD.

I won't be around then, but it would be fascinating to see what people will pursue in my great grandchildren's era. I'd bet it will be different again, and in ways I can't conceive.

 

[pacergal]

Based upon my own observations of both my own children and my innumerable millenial nieces/nephews, I agree.

I also agree that, as a group, they're all over the map. Some are highly educated professionals with advanced degrees who work hard, earn a lot, sacrifice as needed and are building a solid financial future.

Others are low-wage, have-fun-today types. Not my cup of tea, but I love them no less for being different. Also, I suspect their lifestyle choices aren't due to randomness or low ambition; they're a deliberate rejection of the hamster-wheel existence which many of us endured in pursuit of our generation's version of the AD.

I won't be around then, but it would be fascinating to see what people will pursue in my great grandchildren's era. I'd bet it will be different again, and in ways I can't conceive.

+1

 

[marko]

To me that position mirrors Billy Bulger's retirement job @ UMass.
Just adding to the pensions.

Trust me, unlike Billy, Kerry doesn't need a pension; she's a bazzilionaire.

(I can see her former home from my bedroom).

 

[marko]

The young folks I know feel this way until they get married and have children. Then home ownership becomes more important to them.

From the few I've seen, like home ownership, kids and marriage are a low priority. Which I think is sort of the point of the study.

 

[JoeWras]

There's no doubt that the "experience" economy is a thing.

The undesirable side effect of this that many of the experiences have gone up in price significantly. Good old supply and demand.

We recently visited family and they insisted we had to experience a major league baseball game, much as we did as kids 40 years ago.

Just one problem. We spent approximately 35x what we did as kids. Ticket, beer, peanuts and hot dog set us back $200 each. 35x is way over general inflation in this time.

Worse than that, however, was the experience surprised me in the lack of diversity among the fans. As a kid, all kinds of people would come to the games. Now, I saw a lot of homogenization of the fan base, and this is primarily due to the cost, plain and simple.

It was a nice experience, but also very strange to me.

I'd rather go hiking. It is still accessible to every social class, and it is Millenial Approved (tm).

 

[ckelly78z]

The white picket fence around a suburban tri-level, in a nice neighborhood with a shaggy dog in the yard was my parents dream. I adopted some of this dream for myself in the early 80s....THEN....the internet showed how many other possibilities were out there, and the world truly became much smaller, and less provincial place for most millenials.

Why work, when you can live a subsistant lifestyle in a traveling van, and make money getting subscribers to your YOUTUBE channel, or BLOG ?

 

[UnrealizedPotential]

Today everything is available to everyone in a lot of countries. In the U.S. specifically there are really no limits as to what is possible. Young people today are influenced by everything: internet,TV,radio and their peers. It's called a dream for a reason though, not everyone or maybe not even the majority of people are going to reach that dream.

Each of us, no matter the age has a choice of what we do in life. IMO in the U.S., it is expensive to live in a lot of places. Life has always been a struggle, that's the reason I think so many people came to the U.S. in the first place, in search of a better life for themselves and their family. There were no guarantees then and there are no guarantees now.

Each of us has a choice of what that dream is made up of and how we can reach it. The World owes us nothing. It was here before us and will be here after we are gone. But all our Earthly possessions we leave behind after we are gone will belong to someone else. But what is in our hearts and minds is ours forever. Just some of my thoughts on the American dream and how I see things.

 

[marko]

The white picket fence around a suburban tri-level, in a nice neighborhood with a shaggy dog in the yard was my parents dream. I adopted some of this dream for myself in the early 80s....THEN....the internet showed how many other possibilities were out there, and the world truly became much smaller, and less provincial place for most millenials.

Yeah. Around we were live there are several dozen big, old, 30 room mansions built by rich sea captains back in the 1800's.

My take is that back then there wasn't a lot else to spend your money on if you were wealthy, so you built a big extravagant house for yourself, your kids and their kids to live in.

Today, there's so many other "financial distractions". Fly to Bali, buy a big car or two, a big boat or maybe a media room or....whatever. The list is almost endless.

 

[Midpack]

I don't have any 20- or 30- somethings to observe daily, so all I can do is read, though my nieces and nephews weren't/aren't in any hurry to marry, settle down, own homes, etc. They seem perfectly happy living in the moment, I have no idea if they have any savings (hope they do). The only traditional habit that seems to be continuing is the desire to have kids, albeit a little later in life nowadays?

But owning a home isn't quite the no-brainer it once was in the USA. I think what happened to real estate in 2008-09 both in home values and mortgage monkey business was a wake up call for all home buying generations.

The only constant is change...

 

[Rianne]

The American Dream is a state of mind. Whatever one thinks of happiness, contentment, challenge, travel, stability...a million different aspirations. And it can change in a lifetime. I'm living the dream today. After college, the dream was work my way up in a megacorp. Uggghhh. Early 30's have kids. Naaaaa, never happened. Buy a big house and live in luxury, yuk, not who I am.

The kids of the 60's are nothing like they were now. The memories are awesome, but the lifestyle, completely different.

Ask me what the American Dream is in 5 years. I can guarantee it will be different than it is today.

 

[haha]

This article may/may not be under a paywall.

https://www.bostonglobe.com/busines...t-different/ixGfismZ5FeVs44X7H7NSM/story.html

Our former lieutenant governor and past president of Babson College has just taken a job with the Milken Institute. https://en.wikipedia.org/wiki/Milken_Institute

In the interview she states:
“The American Dream once meant having more money than your parents, or owning a house, or owning a car, or going to college. It might mean something very different today,” she said. Healey cites another study conducted by American Enterprise Institute earlier this year showing how the American Dream is evolving and how people value above all the “freedom of choice in how to live one’s life” more than owning a home, having a successful career, or even becoming wealthy.

My take is that this will skew what we currently consider retirement (early or late), stocks, banking, investment and our entire culture.

It also implies that young people are not necessarily avoiding buying homes, cars and college because they can't afford them but instead would rather spend their money elsewhere.

Based upon my own observations of my seven millennial nieces/nephews, I'd say that they do want different things than we did. One niece is spending $25K on an African Safari (she can well afford it) and couldn't care less about owning a home. Another would be quite happy working part time at a low wage as long as he has time to spend hours with his friends in a coffee shop.

Comments? Let's keep the references to Milken's troubles out of the discussion if we can and focus on the subject at hand, ok?

Anything is fine as long as you inherit or marry a big wad of money. Otherwise, it is wise to consider reality. For example, if you are male and not outstandingly good looking, having plenty money will definitely improve your social life.

And with respect to the joys of coffee houses, works best with youth. Then one day your youth is gone, and all you get out of coffee houses is coffee addled nerves. You are not much more than a bum.

No matter what bs you may enjoy posting on whatever site, best to keep your life on course.

Ha

 

[socca]

In the interview she states: “... people value above all the “freedom of choice in how to live one’s life” more than ... becoming wealthy."

I must be old-fashioned - this seems like a contradiction to me.

 

[Ready-4-ER-at-14]

Yeah. Around we were live there are several dozen big, old, 30 room mansions built by rich sea captains back in the 1800's.

My take is that back then there wasn't a lot else to spend your money on if you were wealthy, so you built a big extravagant house for yourself, your kids and their kids to live in.

Today, there's so many other "financial distractions". Fly to Bali, buy a big car or two, a big boat or maybe a media room or....whatever. The list is almost endless.

I've seen some captain type mansions where the families were huge and often then was some sort of business being run from the house as well. Lots of staff to man it also. Heck just baking bread meant chopping wood and bringing it into the house. I don't believe real estate was the taxable burdeon it is now either. You mostly owned it as opposed to just renting from the state as it is now.

 

[candrew]

"The reason they call it the American Dream is because you have to be asleep to believe it."

George Carlin

 

[JoeWras]

I don't believe real estate was the taxable burdeon it is now either.

Right. So, some of the "freedom" The Kids talk about is renting and not having to worry about all that rich stuff like real estate tax.

There's a certain irony and naiveté about this.

 

[rk911]

...Another would be quite happy working part time at a low wage as long as he has time to spend hours with his friends in a coffee shop...

my late bro-in-law upon discharge from the army was like that and he was certainly no millennial (b 1947). he lived a very spartan lifestyle delivering newspapers and hustling pool and hanging out with his friends. then reality kicked in. he put his mechanical engineering degree to work and got a good paying job. he had a house but still lived a minimalist lifestyle until he succumbed to cancer abt 10-yrs later.

my flight instructor, a true millennial, lived a barren lifestyle until he too was slapped upside the head by reality. he went to work in the right chair for a major regional airline 5-6 years ago and he’s now about to become a captain for that airline.

i wish the millennials well i think they too will soon learn the same lessons.

 

[MRG]

DWs nephew, a software developer, is moving out of a house and into a van he's converting into a camper.

He'll be parking various places in Denver. Might be a long winter.