New Geography

Author: Morley Winograd and Michael D. Hais

  • Public School Parent Trigger Laws: Something’s Gotta Give

    In the mid-1950s, the McGuire Sisters’ version of Johnny Mercer’s song about what happens when an irresistible force meets an immovable object made it to number five on the record charts. Their prediction, that “Something’s Gotta Give,” provides an apt description of the outcome of today’s battle between the parents of Millennials who want more say in their children’s education and the teacher unions and school district administrators who refuse to give up a smidgeon of control over the public schools they run.

    One of the hottest battle fronts in the war between these two forces has been debates over whether to adopt “Parent Trigger” laws, similar to those passed in California in 2010. Such legislation empowers the majority of parents in any school district deemed to be “failing,” according to the federal No Child Left Behind standards, to essentially reconstitute the school according to parents’ desires either by turning it into a charter school or removing and replacing all current teachers and administrators.

    Since 2010, Texas, Mississippi, and Louisiana have passed similar legislation and it is up for debate in major industrial states such as Michigan, Pennsylvania and New York. In Florida, the idea came within one vote of passage in the State Senate thanks to the enthusiastic support of former Florida Republican Governor, Jeb Bush. At the same time, such Democratic stalwarts as Barack Obama’s Secretary of Education, Arne Duncan, and liberal Congressman George Miller (D-CA) have expressed their strong support for the concept. Most recently, the bi-partisan U.S. Conference of Mayors unanimously passed a resolution in support of Parent Trigger laws.  Los Angeles Mayor, Antonio Villaraigosa, chairman of both the Mayor’s Conference and the upcoming Democratic National Convention, led the charge for the resolution’s passage, aided by strong support from Democratic Mayors such as Michael Nutter of Philadelphia and Kevin Johnson of Sacramento.

    None of this has softened the resistance from teacher unions, historically a bulkwark of Democratic support. Often led by unreconstructed Boomer liberals from the 1960s, they see the law’s emphasis on parental prerogatives as the ultimate threat to their control of the classroom and educational budgets. In the most recent battle, unions were able to pressure Change.org, a for profit, grass roots website “staffed by some of the most talented progressive organizers in the country,”  to bar StudentsFirst, an advocacy group run by Democrat Michelle Rhee, the former Washington D.C. School Superintendent, that supports giving parents more control over the schools their children attend, from using its website.

    And when the chief press person for Parent Revolution, the non-profit that is the primary driver behind the adoption of Parent Trigger laws, was announced as the new education media spokesperson by Obama’s re-election campaign, teachers’ unions threatened to withhold their support of the president.

    In the long run, the implacable objections of the unions to parents having more say over the type of education their own children will fail. They will prove no match for the irresistible force of generational change that is already sweeping away existing institutional power structures in schools across the country.

    One of the distinguishing characteristics of Millennials, born 1982-2003, is the intense interest their parents take in every aspect of their children’s lives. This desire to constantly hover over their offspring earned parents of older Millennials (those now in their twenties) the sobriquet, “helicopter parents.” The younger half of the Millennial Generation, which  accounts for most elementary and all secondary school students today is primarily parented by members of the more entrepreneurial Generation X (born 1965-1981). These parents replaced their Boomer predecessors’ tendency to hover and talk with a desire to take action and change bottom-line results.

    Millennials are the largest, most diverse generation in American history, and many of them are now starting to have children of their own. When those children begin arriving in the nation’s schools, Millennial Generation parents will bring the same dedication that their own parents exhibited to making sure each school serves their child’s interests first.  As a result, it won’t be long before the same rights California, Mississippi, Texas, and Louisiana parents now have are given to every parent in the country. As Ben Austin, the founder of the Parent Revolution points out, “the old coalitions don’t apply here; it’s a cause that unites parents from upper-middle-class and working-class backgrounds—white, black, and Latino alike.”            

    The type of generational change America will experience over the next few decades   will drive the transformation of America’s educational institutions and overwhelm those who attempt to keep parents from deciding what kind of school their kids go to. When push comes to shove, something’s gotta give. And, in the end, that means that those who stand for the status quo in our nation’s schools will have to give up their traditional prerogatives and let parents choose the educational experience they think is best for their own children.  

    Morley Winograd and Michael D. Hais are co-authors of the newly published Millennial Momentum: How a New Generation is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics and fellows of NDN and the New Policy Institute.

    School bus photo by BigStockPhoto.com.

  • Millennials’ Home Ownership Dreams Delayed, Not Abandoned

    Eighty percent of Americans buy their first house between the ages of 18-34. While the Millennial Generation’s (born 1982-2003) delayed entry into all aspects of young adulthood has sometimes been characterized as a “failure to launch,” the generation’s  preference for single tract, suburban housing should become the fuel to ignite the nation’s next housing boom as Millennials  fully occupy this crucial age bracket over the next few years.

    According to a study by Frank N. Magid Associates, 43 percent of Millennials describe suburbs as their “ideal place to live,” compared to just 31 percent of older generations. Even though big cities are often thought of as the place where young people prefer to live and work, only 17 percent of Millennials say they want to settle  in one. This was the same percentage of members of this generation that  expressed a preference for living in either rural or small town America. Nor are Millennials particularly anxious to spend their lives as renters. A full 64 percent of Millennials surveyed, said it was “very important” to have an opportunity to own their own home.

    That hasn’t stopped a number of commentators from arguing that Millennials ought to prefer renting a loft apartment to buying a house and that   they would be better off doing so. For example, sociologist Katherine Newman, is “hoping that the Millennial Generation doesn’t set its sights on homeownership as a benchmark of economic stability, because it’s going to be out of reach for so many of them that it will just be a recipe for frustration."

    But survey research suggests it may be her hopes that will be dashed as the Millennial Generation matures. Eighty-four percent of 18-34 year olds who are currently renting say that they intend to buy a home even if they can’t  currently afford to do so. As Neal Coleman, a married Millennial in his mid-twenties, put it, "You’re freer when you own your own home, your own land. You’re not beholden to a renter’s contract, or lease. My feeling is that homeownership is an investment in being able to control your surroundings, to build a life for you and your family."

    Glenn E. Crenlin from the Runstad Center for Real Estate Studies at the University of Washington believes that “what we’re looking at in terms of the Millennial Generation is likely only a delay in homeownership of three to five years, not a long-term trend away from homeownership itself." He cites census data from the American Community Survey that shows a significant increase in homeownership among Millennials as compared to Baby Boomers when they were at the same age that Millennials are now.  “While 900,000 households in the Millennial Generation [now] own their own home, only 500,000 Baby Boomer households owned their own homes at the same point in their lives.”

    This data suggests the key to a resounding revival of America’s housing market may be the availability of affordable homes in neighborhoods with amenities that would appeal to Millennials and their young families. As always, safe streets and good schools are key components of such an environment. But so too are short commutes to work and nearby shops featuring the local products that appeal to younger customers.

    Such neighborhoods already exist in many close-in suburbs whose housing stock is in need of some renovation, or “gentrification,” from energetic owners committed to improving their local community. These attributes describe Millennials precisely. Their willingness to invest sweat equity in rehabilitating their first home should be rewarded in the financing process either by counting its value toward a down payment or using it to wipe out some of the outstanding student debt with which many of the members of this generation are burdened. Alternatively, homes could be offered to Millennials as rentals with an option to buy and with the cost of any renovations performed by the renter deducted from the down payment required to make the conversion from rental to ownership.

    Recently, National Association of Realtors President Moe Veissi announced that "Realtors are committed to ensuring that the dream of homeownership can become a reality for generations of Americans to come." To start making that dream come true for Millennials, realtors and those who finance home purchases need to create innovative new offerings tailored to the needs and wants of Millennials. Policies and programs that will  enable America’s most populous generation to own a  piece of the American Dream offer the best hope for igniting the home construction boom critical to boosting country’s still sagging economy.

    Morley Winograd and Michael D. Hais are co-authors of the newly published Millennial Momentum: How a New Generation is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics and fellows of NDN and the New Policy Institute. Full disclosure: Michael D. Hais retired in 2006 as Vice-President of Entertainment Research from Frank N. Magid Associates after a 22 year career with Magid and continues to do occasional work for the firm.

    New home photo by BigStockPhoto.com.

  • Here Come the Plurals!

    This month America’s destiny as a pluralistic democracy took a new and unprecedented turn. First, early in May, USA Today asked Americans what name they thought would be appropriate for the country’s newest generation now moving into grade school classrooms with its unique behavior and perspectives. Plurals is the name suggested by communications research and consulting firm, Frank N. Magid Associates, with only the Apple product related notion of an iGeneration getting more votes. 
     
    Plurals will be different from Millenials. For one thing they will be the first generation in America that will be majority “minority”, as evidenced by the recent U.S. Census Bureau announcement  that more babies born in America in the 12 months between July 2010 and July 2011, were non-white than white. The event occurred about eight years earlier than demographers had predicted it would just a few years ago. The 21st Century pluralistic American society that had often been talked about has arrived. But the question remains whether or not the country’s institutions, and its leadership, will be up to the challenge such a polyglot democracy presents.
     
    The Census Bureau predicts that by 2042 the entire population will be less than 50% Caucasian and America will literally be a pluralistic society.

    This prediction is based upon the current trends for births among different minority groups compared to whites. Racial and ethnic minorities accounted for 91.75% of the nation’s population growth in this century, with Hispanics comprising a majority of this increase. Rather than immigration flows, which are dropping, this growth will be driven largely by higher rates of fertility among non-whites. Based upon the American Community Survey results in 2010, Hispanics have a fertility rate of 2.4 live births per woman compared to only 1.8 among whites. The only other ethnic group to be having babies at a rate greater than what is needed to replace its current numbers is African-Americans with a 2.1 fertility rate.

    This difference is likely to persist and the gap could easily become wider because of the differences in the age of each population. Twenty-five percent of Hispanic women are in the prime child bearing ages of 20-34, compared to only 19% of non-Hispanic whites. (For both African-Americans and Asians, the percentage is twenty-two). The increasing diversity of both of America’s youngest generations is also reflected in the average age of each population. The average age of America’s white population is 42.3, a full five years older than the overall age of the country’s population. The average age of Hispanics is almost fifteen years younger, 27.6, with the other two population groups closer to the average age of the entire population—blacks at 32.9 and Asians at 35.9.

    Magid’s research indicated that a majority of Americans were “hopeful and proud” of the country’s increasing diversity, but it was the younger generations, most markedly Plurals, who were more likely to say they were “pleased and energized” by this development. Many older Americans, particularly Baby Boomers and senior citizens, are resisting the changes this dramatic shift is bringing to American society. Already states, such as Arizona, with populations that have the widest disparity between the racial and ethnic makeup of their oldest and youngest generations have experienced bitter political battles over issues such as immigration and education that reflect these divides. The good news is that both Plurals and members of the Millennial generation, born 1982-2003, are positive about this inevitable trend toward a pluralistic society, reflecting their comfort with the diversity in the social circles in which they have grown up.

    But that doesn’t mean that Plurals look forward to the nation’s future with equanimity. Most Plurals have been raised by parents from the often cynical and consistently skeptical Generation X. This may explain why Magid found a much greater degree of pessimism about living out the American Dream among them than among their older Millennial Generation siblings, a generation that, despite their current challenges, was brought up in the prosperous Reagan-Clinton era and remains characteristically optimistic. The attitudes of Plurals may also reflect the polarized, bitter politics that have characterized the period of Fear, Uncertainty and Doubt (FUD) that has dominated the news during their young life.

    Whatever the reason, the pessimism of the Plurals must be answered by the nation’s leaders in ways which improve prospects for the nation’s future. One way for this to happen quickly would be for those currently holding power to begin to turn the reins of leadership over to those generations more in tune with the nation’s demographic future. If Plurals’ Xer parents and their Millennial siblings are given the opportunity to shape America’s destiny sooner rather than later, the country just might deliver on the promise of the American Dream for its newest generation.  

    Morley Winograd and Michael D. Hais are co-authors of the newly published Millennial Momentum: How a New Generation is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics, named by the New York Times as one of their ten favorite books of 2008.

  • Millennial Generation Safe at Home

    Each emerging American generation of adolescents and young adults tends to have a distinctive relationship with its parents. For the Baby Boomers of the 1960s and 1970s, that relationship was often conflicted, even adversarial. For Generation X in the 1980s and 1990s it was frequently distant and disrespectful. By contrast, the interactions with their parents of most of today’s Millennial Generation (born 1982-2003) are close, loving, and friendly. That’s a very good thing because, to a far greater extent than for the previous two or three generations, Millennials in their twenties live with their parents, and even grandparents, in multigenerational households.  To the surprise of many members of older generations, most Millennials—and their parents—believe the experience is beneficial and even enjoyable. It may even help America in the years ahead.

    A Pew survey conducted last December indicated that nearly two-thirds (63%) of young adults 25-34 knew someone who had recently moved back in with their parents.   Almost three in ten (29%) said that they were currently living with their parents. That is nearly three times the percentage of those of that age who lived with their parents in 1980 (11%). Multigenerational households, once seen as a lagging trend, have been growing as a share of households since 1980, rising from 12 to 16 percent over the past three decades.

    More recently, the powerful and disproportionately large impact of the Great Recession on young Americans appears to have further accelerated this trend toward multigenerational households. According to Pew, in 2011, the unemployment rate for 18-24 year olds (16.3%) and 25-29 year olds (10.3%) was well above that of those 35-64 (7%).

    But the growth in multigenerational households represents more than simply the result of economic stress. It also reflects how Millennials were raised and the value both they and their parents place on family life.  According to Pew, the large majority of young adults who now live with their parents are both satisfied with this arrangement (78%) and optimistic about their future (77%). In fact, more than a third (34%) of them actually believe that living with their parents at this stage of life has been good for their relationship with their parents, about twice the number who say it has been bad (18%). From the parents’ perspective, those who say an adult child of theirs has moved back home recently are just as satisfied with their family life and housing situation as are those parents whose adult children have not returned home. In this regard, these upbeat parents resemble Cliff and Clair Huxtable, the original TV role models for the proper rearing of Millennials on “The Bill Cosby Show,” who outwardly complained, but inwardly seemed pleased, every time one of their children (and sometimes grandchildren) “boomeranged” back to the family’s home.

    Furthermore, both the adult Millennials who are living with their parents as well as their parents seem to be benefitting from this arrangement. This contradicts the notion, popular among Boomers, that living with parents after one becomes an adult represents some sort of personal failure or lack of initiative. Nearly three-fourths (72%) of the adult children say that living with their parents has had a positive impact on their own personal finances. Young adults who live with their parents also contribute to the household in a variety of ways. Nearly all (96%) say they do chores around the house. Three-quarters contribute to paying household expenses such as groceries or utility bills. More than a third (35%) pay rent to their parents. Given all this, it is not surprising that multigenerational households have become increasingly common with so little complaint from any of the generations involved.

    However, many pundits have expressed a concern about what this trend means for America in the decades ahead. For example, in a recent New York Times article Todd and Victoria Buchholz wrote disparagingly of the “go-nowhere generation” that refuses to take risks, bestir itself from the insulation of home and “go on the road” to seek a better future. Along the way, the Buchholzes praise the Greatest Generation [which] “signed up to ship out to fight Nazis in Germany or the Japanese imperial forces in the Pacific,”  almost seeming to imply that the GI’s fought the battles of Normandy and Iwo Jima  simply to demonstrate their rugged individualism by leaving the parental home.

    History tells a different story. Like Millennials, the GI Generation (born 1901-1924) was of a type labeled “civic” by those who study generational change. Like the Millennial Generation, the GI Generation was raised in a protected manner by its parents and even tended to stay with their parents well into adulthood; multi-generational households according to Pew, after all, were far more common—nearly one in four in 1940—than today. This led to complaints about the generation that later became known as the Greatest Generation which sound strikingly like what is said about Millennials today. According to William Strauss and Neil Howe, the creators of generational theory, early in World War II, Army psychiatrists even fretted about “how badly Army recruits had been over-mothered in the years before the war.”

    Perhaps as a result of this protected upbringing, the GI Generation also was a “stay-at-home” cohort when its members were young adults. A Pew analysis of US Census data from 1940 indicates that when this generation were all 25-34 year olds about 28% of them lived in multigenerational households, a number almost identical to that of Millennials today. As a result, members of the GI Generation married and had children later than previous or subsequent generations, just as Millennials are doing today. However, once the pressures of depression and war were behind them, the GI Generation more than caught up. It parented the Baby Boom Generation, the largest in American history before Millennials came along. Aided by favorable governmental policies such as the GI Bill and the Federal Housing Administration, it grew the American economy to unprecedented heights, and expanded the American middle class, homeownership, and enjoyed en masse the chance to escape crowded cities for more bucolic suburbs.   

    There is every reason to expect achievements from America’s newest civic generation, just as we have seen from previous cohorts of this kind. As was the case with their GI Generation great-grandparents before them, almost all negative social indicators—youthful crime, substance abuse, and out of wedlock teen pregnancy—have fallen to some of the lowest levels in modern history. Meanwhile, positive indicators, such as school test scores and educational achievement, have risen to the highest levels in decades. No less than other generations, Millennials value being good parents, home ownership, having a successful marriage, and helping others in need.  Perhaps the alarmists are wrong. Maybe being “safe at home” especially during times of adversity, is a good thing for young adults, their parents, and the nation.

    Morley Winograd and Michael D. Hais are co-authors of the newly published Millennial Momentum: How a New Generation is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics and are fellows of NDN and the New Policy Institute.

    Mother and son photo by Bigstockphoto.com.

  • Will Millennials Still be Liberal When They’re Old and Gray?

    The Millennial Generation (born 1982-2003) is the cohort most in favor of using the federal government to promote economic stability and equality since the GI Generation of the 1930s and 1940s. The attitudes of Millennials were heavily shaped by the protected and group-oriented way in which they were reared and their experience of feeling the full brunt of the Great Recession as they emerged into adulthood.  

    As a result, the biggest political story of the first half of the 21st century may well be the extent to which the largest American generation ever retains its economic liberalism and thereby shapes the direction of public policy in coming decades. If history is any guide, much of that story’s plot will be written during the next four or five years.

    Millennials deserve America’s sympathies for the disproportionate impact the Great Recession has had on their generation. According to a recent Pew Research Center survey, a clear plurality (41%) of Americans think that young, rather than middle-aged (29%) or older  (24%) adults are having the toughest time in today’s economy. And they are right.  Last year, the unemployment rate for 18-24 year olds (16.3%) and 25-29 year olds (10.3%) was well above that of those 35-64 (7%). Even among those 18-24 year olds fortunate enough to find full-time employment, real median weekly earnings were down by six percent over the previous four years. Not surprisingly, the weak economy has had a profound impact on the personal lives of Millennials. Nearly half (49%) say they have taken a job (often part time) just to pay the bills. A third (35%) have returned to school, something that may pay benefits in the long term, but is at the expense of current earnings. About a quarter have taken an unpaid job and/or moved back in with their parents (24% each). About one in five have postponed having a baby (22%) and/or getting married (20%). Less than a third (31%) say that they earn or have enough money to lead the kind of life they want.

    Their experiences with the Great Recession have only reinforced Millennials’ support for economically activist government. Last November, when Pew asked whether Americans preferred a larger government that provided more services or a smaller government that provided fewer services, Millennials opted for a bigger government over a smaller one by a large 54% to 35% margin. By contrast, 54% of Boomers (born 1946-1964) and 59% of Silents (born 1925-1945) favor a smaller government. .

    In addition, a majority of (55% to 41%) Millennials favored a greater level of federal spending to help the economy recover from the recession rather than reducing the federal budget deficit. Millennials also continue to support governmental efforts to lessen economic inequality; 63% agreed that government should guarantee every citizen enough to eat and a place to sleep. Consistent with their overall attitudes toward the size of government, the two oldest generations—Boomers and Silents—favored reduced spending and a more limited government role in promoting economic equality.

    The tendency of people to retain their political viewpoints and preferences throughout their lives suggests that once they are set, Millennial Generation attitudes toward government’s proper role in the economy will persist for decades. This conclusion was recently confirmed by   economists Paola Giuliano and Antonio Spilimbergo. In a longitudinal analysis of survey data collected annually since 1972, they found that experiencing an economic recession during one’s “formative” years (18-25 years old) led Americans to favor “leftist” governmental policies that would “help poor people” and lessen “income inequality.” These attitudes were not influenced by experiencing a recession either before or after the formative years and remained in place even when controlled for demographic variables such as sex, race, and social class. However, the same data suggested that the deeper and more sustained the recession, the lower the level of confidence survey respondents had in governmental institutions such as Congress and the presidency.  

    The success of governmental action in dealing with the Great Depression in the 1930s and World War II in the 1940s put the GI or Greatest Generation on the path of lifelong support for governmental activism. After the nation’s victory over the Axis and the economic boom that followed, positive perceptions of government and political efficacy were virtually universal among Americans. Today, although America has begun to shake off the worst aspects of the Great Recession, unemployment remains stubbornly high and growth rates remain below the level needed to make dramatic dents in unemployment rates, especially among Millennials.

    So far Millennial beliefs in activist, egalitarian government policies have not been shaken by the slow pace of the recovery or what  some may perceive as an inadequate federal response. The extent to which those attitudes persist in future decades, when Millennials will represent over one out of every three adult Americans, could depend on how well the government deals with the economic challenges the nation faces in the years just ahead.

    Morley Winograd and Michael D. Hais are co-authors of the newly published Millennial Momentum: How a New Generation is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics, named by the New York Times as one of their ten favorite books of 2008.

  • Let’s Level the Inter-generational Playing Field

    With President Obama’s speech in Osawatomie, Kansas decrying the growing economic inequality and lack of upward mobility in America, the issue has finally arrived at the center of this year’s campaign debates. While most discussions of this growing inequality focus on the gap between America’s poorest and richest citizens, a recent report by the Pew Foundation highlights how the same economic trends over the last two and a half decades have also widened the wealth gap between the oldest and youngest Americans to the highest levels in history.

    In a time of great political unrest and economic anxiety, this inter-generational wealth gap has the potential to throw gasoline on an already white hot fire. Only by understanding the sources of this increasing disparity can the country develop policies that will help to close the gap and create a fairer, less economically stratified society.

    Drawing on data provided by the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP), Pew documents the tectonic shifts that have occurred in households’ net worth based upon age between 1985 and 2009. During this time, the average net worth of households headed by those under 35 fell from $11,521 to just $3,662, a drop of 68%.  During the same period, the net wealth of households, as measured by adding up the value of all assets owned minus liabilities such as mortgages or credit card debt associated with those assets, headed by those over 65 increased by 42%, from $120,457 to $170,494 (all figures are expressed in 2010 dollars).

    Of course younger households have always been less wealthy than older ones, since the heads of those households haven’t had a lifetime to acquire wealth. In 1984, this effect of age on household wealth meant that senior citizen households had, on average, ten times the wealth of those headed by people younger than 35. However, the enormous generational shift in household wealth that occurred in the intervening twenty-five years meant that, by 2009, the net worth of senior citizen households was 47 times greater than younger households. The resulting disparities in economic well-being are reflected in each generation’s perception of its own economic situation.  

    Those Americans over 65 in 2009 are members of what generational historians call the Silent Generation. Only 25% of Silents expressed any dissatisfaction with their personal financial situation that year, a percentage that did not increase in the next two years of the Great Recession.

    By contrast, 36% of people under 35 in 2009 – mostly members of the Millennial Generation – expressed dissatisfaction with their individual finances in 2009, a number that rose to 39% in 2011. But the biggest jump in dissatisfaction with personal finances between 2009 and 2011 occurred among the next older cohort, who are considered to be members of Generation X. In 2009, only 30% of Xers felt dissatisfied, a number that shot up to 42% in 2011.  Finally, 32% of the Baby Boom generation, born from 1946 to 1964 and approaching their retirement years in 2009, were dissatisfied with their personal financial situation, a number that rose only to 39% by 2011.

    One of the reasons behind this disparity of financial and economic concern among generations lies with the different impact the nation’s housing market has had on each generation between 1985 and 2009.  The great housing price collapse that began in 2008 had little impact on Millennials, only 18% of whom currently own their own home. By comparison, 57% of Gen Xers own their own home. Three-fourths of them bought after 2000 when housing prices began to soar. As a result, about one in five members of Gen X now say their home mortgage is under water, with the balance owed greater than the value of the house. By comparison, only 13% of Boomers and a miniscule 4% of Silents, most of whom bought homes well before the crash, report having under water mortgages. In fact, if it weren’t for the overall rise in housing prices since 1984 that Silents were able to take advantage of, that generation’s net worth would have fallen by a third in the twenty-five years since, instead of rising by 42%. Clearly, to improve Gen X’s attitudes toward the economy and reduce the inter-generational wealth gap, something must be done to fix the nation’s housing market.

    For older generations – Boomers facing retirement and Silents already enjoying their new life – housing is not an especially large concern. Retirement savings based on stock market valuations and/or interest rates and the certainty of pension payments are clearly a much bigger issue with these generations. Almost two-thirds of Boomers believe they may have to defer their retirement beyond 65 because of the decline in their savings and net worth, with about one in four now expecting to work until at least 70. While the stock market has almost fully recovered from the 2008 crash, for those counting on a more interest-oriented set of retirement payouts from bonds or CDs, years of rock bottom interest rates, designed by the Federal Reserve to stimulate the housing market and help the economy recover, have made these investments problematic at best. In some ways, economic policies that are designed to help Gen X with their housing challenges offer older generations scant comfort, and in certain instances actually exacerbate their concerns over their personal finances.

    Millennials diminished sense of economic opportunity remains focused almost entirely on the job market. About two-thirds of Millennials are employed but only slightly half of those are working full-time. Almost two-thirds of Millennials without a job are looking for work. Unemployment among 16-24 year olds rose to 19.1% by the fourth quarter of 2009, a full eight points higher than in 2007 before the crash. For all other generations, unemployment has gone up on average by only 5 points during the same time period. It seems too obvious to be worth stating, but the best way to increase Millennials’ wealth is to create an economy where they can all find jobs.

    Anxiety that the nation’s economy is only working for the wealthiest drives much of  the overall feeling of fear, uncertainty and doubt that pervades the nation’s political debate.  But an examination of household wealth suggests the remedy to this disease varies by generation.

    Senior citizens turned out in record numbers in the 2010 election to decry the policies of the Obama administration, but it would appear from both the economic and attitudinal data that most of them are more interested in fighting to hang on to what they have or in resisting other societal changes than in expressing any dissatisfaction with their own personal financial situation. Boomers complain about what has happened to their plans for retirement, but it is hard to see how fixing entitlements by raising the retirement age, or cutting the overly generous pensions of public employees will do anything to impact their own retirement prospects directly. To really close the generational wealth gap, policies should be adopted which raise the economic well being of America’s two youngest generations, rather than focusing on those who are already relatively better off. 

    To bring up the least wealthy of the nation’s households to levels closer to those more fortunate would require taking much more aggressive steps than Washington has so far been willing to consider.  This might require expanding the scope and size of government, something older generations especially are steadfastly resisting. This inter-generational debate over the nation’s “civic ethos,” driven by the differing economic circumstances of each generation, will be and ought to be the fundamental issue of the campaign – precisely where President Obama’s speech in Osawatomie, Kansas placed it.

    Morley Winograd and Michael D. Hais are co-authors of the newly published Millennial Momentum: How a New Generation is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics and fellows of NDN and the New Policy Institute.

  • Millennials Have the Answer to the Country’s Fear, Uncertainty and Doubt

    America is about to enter a presidential campaign that promises to be filled with divisive rhetoric and sharp differences over which direction the nominees want to take the country. This will be the fourth time in American history that the country has been sharply divided over the question of what the size and scope of government should be. Each time the issue was propelled by vast differences in beliefs between generations that caused the country to experience long periods of Fear, Uncertainty and Doubt (FUD), before ultimately resolving the issue in accord with the ideas and beliefs of a new generation.

    Every eighty years America engages in this rancorous, sometimes violent, debate about our civic ethos. The first occurred during and after the Revolutionary War and resulted in the most fundamental documents of our democracy: the Declaration of Independence, the Constitution, and the Bill of Rights.

    The second took place during the Civil War. The 13th, 14th, and 15th Amendments codified the outcome of that debate — this time in favor of the federal government asserting its power over state laws when it came to fundamental questions of personal liberty and civil rights.  It took the Civil War and a massive increase in Washington’s power to accomplish the end of slavery, although it would be another century until the rights of freedom and equality were fully extended to African-Americans. 

    And in the 1930s, the economic deprivations experienced by most Americans from the excesses of the Industrial Revolution, and the collapse of corporate capitalism, led to support for a “New Deal” for the forgotten man that placed the responsibility for economic growth and opportunity squarely on the federal government. The government demanded by the GI Generation (born 1901-1924) greatly surpassed the conventional views of earlier generations.

    In each case, the resolution of these debates depended on the emergence of a rising, young civic-oriented generation that thought the nation’s dominant political belief system   should contain a strong role for government, overturning the more conservative and limited-government views of the older generations then in power.

    Now, as previously, the highly charged ideological arguments on both sides of the issue generate great agitation and anger among older generations, especially Baby Boomers, who have driven our political life towards ever wider polarization. As a result, the resolution of today’s debate over the nation’s civic ethos is not likely to come from older Americans who seem incapable of and unwilling to compromise their deeply held values and beliefs.

    This time around, the largest generation in American history, Millennials, (born 1982- 2003), that  will comprise more than one in three adult Americans by the end of this decade, are destined to play a decisive role in finding a consensus answer to this critical question.   If the United States is to emerge from this most recent period of FUD, it will have to look to the newest civic-oriented generation, Millennials, for both the behavior and the ideas that will bridge the current ideological divide and spur the country into making the changes necessary to succeed in the future.

    Millennials believe that collective action, most often at the local level, is the best way to solve national problems. Using social media, Millennials are organizing groups like the Roosevelt Institute’s Campus Network, to present a very different vision of America’s future. In this Millennialist future, the idea of top down solutions developed by experts in closed discussions will give way to bottom up, action-oriented movements. This will topple institutions as dramatically as Napster upended the recording industry, or the Arab Spring changed the Middle East.  Just as their parents set the rules within which Millennials were free to exercise their creative energies when they were growing up, the new generation will continue to look to the federal government to set national goals or guidelines, as has long been the view of Boomer progressives.   However, the way in which these guidelines are implemented will not be determined in remote and opaque bureaucracies, but by individuals in local communities across the country. In this way, Millennials will embrace progressive values, but with approaches that may be welcomed by many conservatives.

    In the midst of the country’s current period of FUD, it is easy to despair that the nation will be unable to resolve its divisions and come to consensus about a new civic ethos. But throughout its history, when America has been equally fearful of the future, a new civic generation has risen to foster the necessary transition. In the end, this emerging generation served both itself and the country well. Now it is the Millennial Generation’s turn to serve the nation and move America to a less fearful and less divided future.  

    Morley Winograd and Michael D. Hais are fellows of NDN and the New Policy Institute and co-authors of the newly published Millennial Momentum: How a New Generation Is Remaking America and Millennial Makeover: MySpace, YouTube, and the Future of American Politics.

    Photo by kevindooley.

  • Are Millennials the Solution to the Nation’s Housing Crisis?

    During his Twitter-fed Town Hall, President Obama admitted that the housing market has proven one of the “most stubborn” pieces of the economic recovery puzzle to try and fix.  The President — as well the Congress and the building industry — should  consider a new path to a solution for housing by tapping the potential of the very generation whose votes brought Barack Obama into the White House in the first place.   

    The Millennial Generation (born 1982-2003) represents not just the largest generation in American history but the largest potential market for both existing and new housing in the United States. There are over 95 million Millennials and over the next five years the first quarter of this cohort will enter their thirties, an age when people are most likely to buy their first home.

    Contrary to what is often written about this generation it is very much interested in owning a home, preferably in the suburbs. Sixty-four percent of Millennials say it is very important for them to have an opportunity to own their own home; twenty percent named it as one of their most important priorities in life, right behind being a good parent and having a successful marriage.

     And, contrary to the usual claims of “new urbanists” (themselves largely members of the older X and Boomer Generations) most Millennials want to live in the suburbs where the current housing crisis is most acute. According to a study by Frank N. Magid Associates, 43 percent of Millennials describe suburbs as their “ideal place to live,” compared to just 31 percent of older generations, most of whom still yearn for the smaller towns and rural settings of an earlier America.  

    Most Millennials already live in suburbs and enjoyed growing up in suburban settings surrounded by family and friends that supported them.  A certain portion, of course, enjoy living an urban life while young, but most tell researchers that they want to raise the families many are about to start in the same suburban settings they grew up in.

    Furthermore, Americans between the ages of  25 and 34, both Millennials and those on the “cusp” of the generational change from X to Millennial,  represent a greater proportion of the overall population in the South and West than elsewhere. These are the very regions that suffered the most from the collapse of housing prices that stemmed from the mortgage financing scandals of the last few years. Unleashing this potential demand for suburban housing in these hard-hit areas would bring two huge benefits. It would stabilize prices for existing homes while at the same time boosting the prospects for new housing construction.  

    The challenge is how to enable the Millennial Generation to achieve its desire to own homes without reigniting the speculation and unsustainable financial leverage that   triggered the Great Recession. Clearly, in the immediate future at least, the current excess of supply in the housing market should mitigate the risk of too much demand chasing too few houses.  As much as they are criticized by the financial industry and its Republican allies, the recently enacted financial regulatory reforms might also provide an additional bulwark against allowing the market to misbehave a second time.

    But the biggest factor may be the lessons learned from experience.  Millennials have borne much of the brunt of the Great Recession and tend to be keenly aware about the importance of living within your means.  Wanting a suburban home does not mean, as many urbanists assert, that Millennials want McMansions. Like earlier generations, especially their GI Generation great grandparents, they are likely to be cautious and frugal home-buyers. However, this frugality and caution does not translate into a meek acceptance or desire for a future as apartment renters, as some suggest will be the case.    

    In the short run, Millennials will not be able to engineer a turnaround all by themselves; most Millennials can’t afford much beyond the next month’s rent, let alone the down payment on a mortgage. Many are still living with their parents to avoid having to pay rent and the cost of a college education at the same time.

    To address this part of the challenge, the federal government needs to do what it did to revive the moribund housing market in the 1930s. The New Deal created today’s commonly accepted 30 year mortgages with a 20 percent down payment by making them a financial instrument that the newly formed Federal Housing Administration would insure. Before that landmark legislation, home mortgages were rarely offered for more than half of the home’s value and normally had to be repaid in no more than five years.

    As a result that era’s civic generation (the GI or Greatest Generation) was able to afford single family homes with a surrounding tract of land, an offer returning World War II veterans seized with alacrity. These houses now make up much of the country’s inner suburb housing stock.    Today’s housing crisis requires a similarly radical reinvention of the basic home mortgage to be offered to those buying their first home. Under this proposal the length of the mortgage could be extended up to as many as 50 years, reflecting the increased life expectancies — and longer working careers — that most Millennials can expect to enjoy. Since no market for such debt instruments currently exists, it would be up to the federal government to create one through the process of reinsurance, just as it did in 1934.

    To further encourage home buying by Millennials, the federal government should also provide incentives to financial institutions to swap out the principle of the Millennials’ student loans in exchange for a new loan, whose principal would be collateralized by the value of the real estate the former student would be acquiring. The student loan would be paid off as part of the mortgage, making Millennials better able to afford a home and freeing up additional discretionary spending that current worries over student debt curtail. Today’s lower housing prices today might make this package both attractive to investors and financially viable.

    Many economists today argue against the whole notion of encouraging home ownership by anyone, let alone young Millennials. Some point out that when looked upon strictly as an investment choice, the value of a home rarely appreciates faster than the overall stock market.

    This type of analysis, which forms the basis for arguing against any federal policy that would further encourage home ownership, ignores the proven benefits to the nation that derive from home owners committed to the success of their local community.  Voting participation rates among home owners, for instance, traditionally run higher than rates among renters, and neighborhoods of owners tend to be more stable places to raise children. 

    More important still is what homeownership means to the nature of a property-owning republic. Survey after survey shows that home ownership remains a central part of the American Dream and a central aspiration, particularly for immigrants and young people. A policy that works against this ideal presents a political risk that any politician should be wary of taking.

    To restore this part of the American Dream, and to lift the worry of millions of Americans whose house is worth less than what they owe on their mortgage, the Obama administration must take bold steps to restore a vibrant residential housing market.    President Obama, who built his winning margin in 2008 through an unprecedented mobilization of Millennial voters, is the ideal person to combine a plan for economic recovery efforts with meeting the aspirational goals of most Millennials to own their own home.

    To save the housing market, and extend the recovery beyond the financial elites, America will need a new wave of home buyers.  If the President works to tap this resource, he can begin to turn around the “stubborn problem” of the housing market and restore the middle class economy. If he does so, the whole country will soon be tweeting his success.

    Morley Winograd and Michael D. Hais are fellows of NDN and the New Policy Institute and co-authors of Millennial Momentum: How a New Generation Is Remaking America to be published in September and Millennial Makeover: MySpace, YouTube, and the Future of American Politics.

    Photo by 3Ammo

  • Understanding the Egyptian Protests: Headwaters of the Arab Spring

    On Tuesday, January 25, 2011, the leaders of the Egyptian protest group, April 6 Youth Movement (A6Y), led hundreds of thousands of protesters chanting, “Bread, Freedom, Human Rights” into Cairo’s Tahrir Square. The events that followed completely surprised the economic elites gathering for the annual World Economic Forum meeting in Davos, Switzerland. Few put much stock in the importance of the actions of young people in Egypt until the protests overturned that country’s entrenched power structure in a matter of weeks.

    Why were the leaders of the global economy so surprised by the events that have come to be known as the Arab Spring, and why did they feel so threatened by them? Why did the protester’s demands spread so quickly throughout the Arab world after decades of suppression by autocratic regimes? 

    The answer to these questions lies in an understanding of the complex interaction between technological and generational change, fueled by a hunger for a better future, that continues to be the underlying source of the institutional instability and that will reshape the entire region. In a new Kindle Single, Headwaters of the Arab Spring, NDN fellows Morley Winograd and Mike Hais explain how these intertwined forces are destined to undermine institutions and leaders in every corner of the world.  

  • The Millennial Mosaic

    Esperanza Spalding, winner of the best new artist award at this year’s Grammys, personifies the ethnic trends reshaping America.  She is a fresh-faced 27-year old jazz bassist whose very name portrays her mixed ethnic and racial heritage as the daughter of an African-American father and a Hispanic, Welsh, Native American mother. Spalding first gained her deep interest in music watching French-born Chinese American classical cellist Yo Yo Ma on “Sesame Street,” a TV program that has perhaps contributed to ethnic acculturation in the U.S. as much as any other institution. Spalding’s formal musical training was originally classical, but at age 15 she decided that her passion was jazz, itself a quintessentially American 20th Century fusion of black rhythms and the melodies of European immigrants.

    The United States has gradually been becoming more diverse for decades, but Esperanza Spalding’s Millennial Generation (born 1982-2003) is most radically altering the nature of that diversity.  The entirely senior citizen Silent Generation (born 1925-1945) is 90% white. Baby Boomers (born 1946-1964) and Generation X (born 1965-1981) are a bit more diverse: 17% and 25% non-white respectively.  In contrast, four in ten adult Millennials are either African-American, Hispanic, Asian, or of mixed race. Among all Millennials of high school age or younger, about half now come from what was once called a minority group. Moreover, according to the 2009 Census population estimates, the under 18 population of Arizona, California, Hawaii, Maryland, Nevada, New Mexico, and Texas is majority-minority with Florida, Georgia, Mississippi, New Jersey, and New York poised on the brink of that benchmark.

    In 2008 the Census Bureau made these demographic trends “official” by forecasting that the United States will become a majority-minority country around 2040. By 2050, with an estimated 46% of the population, non-Hispanic whites will still remain the country’s single largest racial group, but Hispanics (30%), African-Americans (15%) and Asians (9%) will together comprise a majority of the U.S. population.

    Generational theory, first developed by William Strauss and Neil Howe, offers important historical insights on what this new majority-minority America might look like.    As we point out in our forthcoming book, Millennial Momentum: How a New Generation is Remaking America, we are in the midst of what Strauss and Howe have defined as a “fourth turning.” These periods have invariably been associated with the most intense social and political stress in US history: the American Revolution, the Civil War, and the Great Depression. Civic generations, heavily populated by the children of large waves of immigrants, are more ethnically diverse than older generations, contributing to the ethnic and racial tensions that have existed during each of these time periods. At the same time, because civic generations are comprised of group- and team-oriented, conventional and institution building individuals, ethnic absorption and acculturation also increases during and just after fourth turnings as each civic generation matures. This is in sharp contrast to “idealist” generations, such as the Baby Boomers, that reject the mainstream culture and often form movements promoting ethnic separatism.

    Ethnic tensions during previous similar generational changes rivaled those the country is experiencing today.  In the run-up to the Civil War, the rabidly anti-immigrant and anti-Catholic American or Know-Nothing Party captured close to a quarter of the national popular vote in the 1856 presidential election,and more than a third of the vote that year in all of the states that eventually comprised the Confederacy. In the 1930s, as the civic GI Generation children of the Eastern, Central, and Southern Europeans who comprised America’s last previous great wave of immigrants came of age to help elect Franklin D. Roosevelt, his most virulent opponents claimed that the president was really a Jew named “Rosenfeld” and derided his program as the “Jew Deal.”

    We see similar language in today’s discourse, at least on the fringes. Some extreme opponents of President Barack Obama accuse him of being foreign-born and a crypto-Muslim. In a more obscure way, if one searches Google for the seemingly innocuous phrase, “US majority nonwhite 2040,” two of the first three listings are from racist groups decrying this change and the third is from a liberal group advising the need to “understand” the fears of white people in a rapidly changing America.

    Fortunately civic generation Millennials have many characteristics that lead to ethnic acculturation and absorption The Civil War generation was critical to absorbing the Irish into the American mainstream, in part through the role played by Irish detachments in the Union Army, something that helped the Irish overcome the charge that they were an alien Papist force set on undermining a free Protestant nation.  Similarly, the GI Generation’s Poles, Italians, and Jews became acculturated during and after World War II, in part through their service in the armed forces or in the domestic war effort.  In sharp contrast to the anti-Semitic charges leveled against FDR, commentators on all sides of the political spectrum describe America as a “Judeo-Christian Nation.” Foods like bagels and pizza, once available only in urban ethnic enclaves, became commonplace, sold by pizza chains started by Irishmen and Greeks, or bagels marketed by brands such as Pepperidge Farm.

    In the current fourth turning, America’s newest ethnic minorities will also become acculturated and, in turn, shape the nation’s culture. A 2007 Pew survey indicates that while only 23% of first generation Hispanics speaks English “very well,” that percentage rises to 88% among those in the second generation and 94% within the third. At the same time, researchers at the University of California-Irvine and Princeton found that Latinos tend to “lose” their Spanish the longer they are in this country. This research indicates that although first generation Hispanics bring Spanish with them, by the second generation only a third of Latinos speak Spanish “very well.” By the third generation, that number drops to 17% among those with three or four foreign-born grandparents and to only 5% among those with just one or two foreign-born grandparents. ()  

    And, so as the United States endures the tensions and rancor of another generational fourth turning, it is important to realize that this too shall pass.  Millennials will, as have other civic generations before them, redefine what it means to be an American in ways both more diverse and inclusive than older generations may be able to imagine or appreciate.

    Morley Winograd and Michael D. Hais are fellows of NDN and the New Policy Institute and co-authors of “Millennial Makeover: MySpace, YouTube, and the Future of American Politics” and the upcoming “Millennial Momentum: How a New Generation is Remaking America.”

    Esperanza Spaulding photo by Andrea Mancini.