The Bankrupt Generation

There were a two articles listed on CNN’s website last night that caught my attention. Interestingly enough, they were listed one after the other. Together, they don’t exactly paint a rosy picture for my generation.

The first article dealt with the massive student loan debt that we are taking on, and how it affects life decisions. Like buying a house, getting married, or starting a family. It’s absolutely true – my student loan payment is very significant. I have no idea how much longer I’ll be paying it off. It’s been about 6 years now, and it really doesn’t seem like I’ve made that huge a dent in it.

With housing prices rising faster than inflation, and college prices rising faster than inflation, and starting salaries rising slower than either, what’s a new graduate to do? Rent until they are 30 to save up for a down payment on a house? That didn’t work for me – student loan payments made sure of that.

The next article was about how Social Security might run out of money is about 35 years. People would then only get about 3/4 of what they were getting. Instead of trying to correct for it now, Congress will probably just wait until it’s too late and drastic measures need to be taken. Here’s one thing I don’t understand: only the first $94,200 is taxed for Social Security and Medicare. Why not raise that limit? If you make less than $94,200, you won’t notice anything. If you make a little more than that, you’ll notice a little bit. If you make a lot more, you’re already making a lot, and you are better able to deal with it.

Now I’m not trying to make it sound like we’ve got it so bad. I’m just saying it looks like there is trouble ahead, and no one in charge seems to care.