Wednesday, November 22, 2017
Are Young People Not Willing to Engage The Economy?
I was reading Foreign Affairs and came across an article on how the young may not be as likely to engage with the economy as their forefathers did. There is a belief that their efforts will impact their ability to be successful. Modern economics has helped bring some justification to their concerns. According to the article How Should Governments Address Inequality by Melissa Kearney there are a few things the article helps us to consider. -Europe has more growth opportunities than the U.S. Americans may not have the same mobility they once had and are falling behind other countries. Worse! The opportunities may be moving backward where people are stuck in poverty over the next generation. -To consistently run against a brick wall in promotion is frustrating and leads to passive behavior where hard work doesn't lead to tangible outcomes. Those in the lowest incomes find upward mobility almost impossible. The economy will suffer. -Less risk being taken and less businesses starting damaging overall future growth opportunities. -The author argues that tax reform to close loopholes and unfair advantages to the rich. Tax reform is certainly part of it, and the suggestions of the author are solid as well, yet tax reform needs to be made so business are encouraged to hire people and grow their base. Those who are willing to start businesses also need help. -Solving this problem is not easy. It requires curbing the political-wealthy connections that limit opportunities for others. It also requires helping small businesses grow and develop creating some mobility upward. Kearney, M. (November/December, 2017). How Should Governments Address Inequality? Foreign Affairs,96 (6). pg. 166