While the Bank of Mom and Dad Shuts Amid White-Collar Struggle,
Indeed, the bank of Mom and Dad is closing at a time when young people are having trouble borrowing from traditional lenders. Some 22% of young people between the ages of 18 and 34 said they’ve been turned down for a mortgage, loan or credit card in the past year, according to a February survey from FindLaw.com, a legal marketing and information site. That’s double the percentage of any other age group in its survey.
As a result, many young people are now moving home to save on rent. About 21% of young adults say they’ve either moved in with a friend or relative, or had a friend or relative move in with them because of the economy, according to a study from the Pew Research Center
the government will now require parents to cover their children for health insurance up to age 26.
The WSJ article speculates that
In the long run, the drop in parental aid could make young adults a more financially resilient generation, like children of the Great Depression. But for now, economists worry that without parental cash, young adults may put off entering the housing market, settling into career paths and having families.
However, the increasing government takeover of the economy, the extension and expansion of government entitlements, and the government’s disastrous economic policy instill a mindset of dependency in all of society.
In today’s podcast at 11, Moe Lane talks about the Democrats’ uncomfortable week.
I’m one of the mom and pop bankers that did not grow up with a mom and pop bank and did just fine and I want my bank to close so I have something left for retirement.
And reduction in credit cards to young people? Part of the problem was too easy credit. I was affiliated with a university in the 90’s and saw students receiving unsolicited credit cards in the mail or being given free goodies from a kiosk to sign up for a credit card. Ending that kind of easy credit is a good thing. Otherwise, my son financed a car for the first time last year and he and his wife bought a house last month so I don’t have personal experience with deserving kids suffering from tight credit. The WSJ article doesn’t mention that perhaps the 22% that were rejected may not have had jobs or had some other bad mark on the credit history.
And my standard disclaimer: I don’t support socialism. At the same time, comparing this WSJ article to government takeover of society is comparing apples to oranges.
Found your site by accident while surfing only to be pleasantly surprised by the interesting radio content and a mutual appreciation for a certain Australian. You might enjoy my latest blog that features a well known shower scene 🙂
http://jdurward.blogspot.com
comparing this WSJ article to government takeover of society is comparing apples to oranges
You are right, Robert. My analogy is faulty, but what worries me is that our society is fostering a dependence mentality, while at the same time government policy worsens the situation.
Oh! Hugh Jackman! Niiiiice…
Fausta, we are fostering government dependence and have been since Roosevelt. It’s much easier to control people when they count on your for EVERYTHING. Concurrently, and it is most likely unrelated, we have culturally extended childhood into the far reaches of our twenties. High school students play sports instead of work. College students do whatever instead of work. Because so many people go to college now, many have to differentiate themselves with graduate degrees, extending schooling even farther. What money students have goes towards video games, pizza, and intramural sports. One can argue all day long of the learning experiences that sports and video games play in our lives, but there is nothing like work on your resume to show that you are a proven entity. There is nothing like developing your network early to give you a HUGE advantage after college. There is nothing like saving money so that you can get out of college without debt or get out with perhaps some savings. How about working your way through college and foregoing the loans or depending on mom and dad altogether? We raise children to be children, to go have fun, put off work until later. “You’ll spend the rest of your life working, play now.” This attitude lacks wisdom.