Cry me a river, millennials
Don’t trust anyone over 65! A new study by a group called Generation Squeeze has uncovered a supposedly shocking statistic: Our governments spend $12,000 on every Canadian under 45, but $45,000 on every retiree. At first blush, this doesn’t seem that strange, due to the pension benefits and higher healthcare costs paid for seniors. But apparently, this difference constitutes a terrible inequity which is ruining the lives of thousands of younger Canadians.
According to Gen Squeeze’s website, “This is NOT a good deal… Still, our generation is doing all it can to adapt. To compete for better employment, we squeeze in YEARS more of education and tuition. To buy a place, we accept jobs or contracts that require us to work YEARS more to save a down payment. And for many, this means we wait YEARS longer to move out of our parents’ homes, or to establish our financial independence. WORK and POSTPONEMENT are our coping mechanisms.”
Coping mechanisms? Actually, no: They are choices. And it’s not because government is spending proportionately less money on younger people that they are making them. Ottawa and the provinces are not responsible for changes in the global economy that have transformed the workplace, nor for major alterations in family structure and procreation patterns that have changed how we meet, mate and split up. In fact, many of those changes have made life better for the under-45 generation than for that of their parents.
When it comes to personal decisions — Cohabitation? Marriage? Kids? — under45’s have more options than any generation in history. Today, if you shack up without a ring, you throw a housewarming — instead of being written out of the will. If you’re gay, you can get married — instead of being shunned. If you have a baby outside of marriage, it will be celebrated — instead of given up for adoption. If you don’t want babies, you’ll have a lot of company — instead of being termed a barren spinster. And if you wait into your late 30s to procreate, you can use IVF, egg freezing, or triple-parenting, God help us — instead of ending up with only cats for company.
When it comes to personal finance, it’s true that home prices today are at historical highs — but mortgage rates are at historical lows. In 1981, when today’s 65-year-olds were buying houses, mortgage rates hit 21%. Then there was inflation. Remember inflation? If you’re under 45, you probably don’t, because since 1991 the Bank of Canada has kept it to an average of 1.9%, peaking at 3.8% in 2002.
Compare that to the period between 1971 and 1990, when inflation averaged 7.1%, hitting highs of over 12% in 1974 and 1981 — continually eroding our parents’ savings while hiking their bills.
As for the pressures of career and family, the “traditional” long-term, full-time, 9-to-5 jobs 65-year-olds had are harder to get today. But under-45-year-olds, particularly the younger set, don’t even want them. According to a 2012 study by PWC, 64% of millennials would like to occasionally work from home — something unthinkable for their parents’ generation. A 2015 study by the group Elance found that 79% of millennials would consider quitting their regular job and working for themselves in the future, and that they prize the flexibility and control of freelancing — which barely existed in their parents’ day. Younger workers also change employers and careers for reasons of happiness and personal fulfilment — something that was long frowned upon. (Rent a copy of The Graduate if you’re under 45 and don’t believe me.)
And guess what? All these changes have been brought to you by those same people Gen Squeeze says are getting too much public money: the baby boomers. Under-45s can thank them for women’s rights, gay rights, minority
A new group thinks it’s unfair that seniors get so much more money than other age groups. Of course they do — they get pensions
rights, the pill, no-fault divorce, the concept of “personal happiness,” the CPP, Medicare, our university network, even today’s low interest rates (Bank of Canada governor Stephen Poloz is 59 years young).
All of these changes had consequences, both positive and negative. Some national programs, such as health care and pensions, are today in need of major reform. Less family stability has meant more upheaval in the lives of children. And it’s true that under-45s pay far more taxes than their parents’ generation. Things aren’t perfect — but for a great number of under-45s, the pros outweigh the cons.
If millennials still want to fight for more generational equity, they should start with their voting habits. In the 2011 federal general election, fewer than half of under-45s, and only 39% of youth aged 18-24, bothered to cast a ballot. In contrast, 75% of Canadians aged 65-75 voted.
If you’re not participating, other people will make decisions for you — and parties will ignore your needs in favour of those of others. Millennials need to stop blaming baby boomers, and take responsibility for themselves.