Report: Younger Generation at Risk of Being Poorer Than Parents
Automakers are turning up the wick on drive-sharing investments and slowly transitioning from car manufacturing to providing mobility. That’s likely a good bet, too, considering a recent report from McKinsey Global Institute.
The report, titled “ Poorer than their parents? A new perspective on income inequality,” is a stark reminder that the economic situation isn’t as good as it was 10 years ago, let alone compared to the highs of the postwar West.
For starters, 65 or 70 percent of households in the advanced nations studied were “in income segments whose incomes in 2014 were flat or down compared with 2005,” states the report. The United States is one of the countries pulling up that average with 80-percent of households in income segments either flat or falling.
The 2008 recession is the epicenter for much of the economic turmoil over the last 10 years as “income from wages fell for all population segments between 2002 and 2012, regardless of age or level of education.”
But it’s the disproportionate nature of that downturn that worries researchers.
“The recession and weak recovery in some of the countries have led to persistently high levels of youth unemployment, preventing young people across advanced economies from launching careers. These are the people who are literally at risk of growing up poorer than their parents,” the report states.
Car ownership is expensive and operating a vehicle on public roads is a privilege. For young people, car ownership may also be a privilege they simply can’t afford.
The full report is available from McKinsey Global Institute.