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Capitalism is not favored by millennials

Valued Contributor

Re: Capitalism is not favored by millennials

I'm going to go on a small rant here, and this is a great thread by the way. 

 

When it comes to economy and finances, millennials don't know anything. A chipmunk knows more about finances than the typical millennial. I'm 26 years old and it's mind boggling how people my age would rather go out and drink with their buddies, make stupid decisions, and party instead of securing their future. 

 

Ask 100 millennials if they've started their retirement fund yet and I bet 99 say they haven't. The same 99 will say they've never heard of a 401k, IRA, or know the basics on how the stock market works. The few I've talked to about investing have all stated, "it's too risky," while ignoring the typical trends of the stock market. I guess they would rather see their money "grow" (which is reality is a loss due to inflation) at 0.01% interest rates in a savings account instead. 

 

Meanwhile these folks nickel and dime themselves with no investments or retirement fund, no home (to build equity), don't know how to balance a checkbook (to prevent overdrafts), and don't understand how to build great credit, but spend their money on booze and fast food instead. It doesn't help that many are stuck paying off large student loan obligations or stuck working at Macy's because the rich are too greedy to pay a decent wage, but that's life, and many of these people chose to go to a private institution when they could have went to a state school for 1/15th of the price. 

 

I can't solely blame the millennials for being immature and irresponsible, but also the schools that don't know how to teach economic and basic banking skills to those who will be adults in the near future. I also can't expect them to understand capitalism either because they can't grasp the above information. 

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Message 31 of 53
Member

Re: Capitalism is not favored by millennials

My 2 cents is you have to start with defining socialism vs social democracy. I don't think millennials are in favor of socialism where no one owns anything, but rather a social democracy that curves financial hoarding like college tuition. I find it funny that older generations always blame the youth for a mentality when that generation set 4th the rules. Example in my area the older generation complains abt kids being in the streets, but not taking any responsibility for being the ones to close down skating rinks, rec centers, movie theaters, and even malls because they didn't want the traffic or the noise. Ppl will blame millennials for racking up debt but are the same one's running companies requiring college degrees while investing in debt collections. Who's to blame? You can't put someone in a damned if you do damned if you don't situation then blame them for making any choice. Secondly post 9-11 and post housing bust of '08 a lot of things are just simply harder. You can't get credit, mortgages, even bank accounts as easily as you could in the past. So most people just have to follow the trend in which they at least have a shot. No one wants to foot the entire bill for someone to live but being greedy isn't the answer either? When you have a cookout isn't it better when other ppl bring side dishes and everyone eats? You can still own the house, the yard, the grill and the ribs, but you can get just as full off the rolls, salad, wine, beer etc that someone else brought to the table.
Message 32 of 53
Established Contributor

Re: Capitalism is not favored by millennials

Interesting.  In one breath its implied that people are not financially smart if they don't invest in 401(k) or IRAs or the stock market.  In the next breath, its implied that corporations should stop "hoarding" money.  Where do you think the value in those investment vehicles come from?  As a company becomes more profitable, its value rises, which means your 401(k) and IRA values rise, too.  If somebody is offended that some corporation is making an 8% profit for the year, I hope they are donating any increase in the value of their 401(k) over 8%, too.

 

The "living wage" argument is one that always facinates me.  Its so completely subjective, yet everyone who supports it is positive that its essential.    I think that is the crux of the "millenial" issue.  Many of them feel like they should be getting paid a wage that will allow them to support the purchase of large screen TVs, expensive cell phones, video game systems, designer clothes and dinner out every night.  All this while working at a no-skill-required entry-level job (like flipping burgers).

 

 Of course, if you live in a ridiculously high-taxed state like New York or California where it costs an arm and a leg to live in a 400 sq ft hovel in a dangerous neighborhood vs in Wisconsin where that same money will get you a 2000 sq ft 3 bedroom luxury apartment with a fireplace and hot tub in the suburbs, a living wage is going to be different.

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Message 33 of 53
Member

Re: Capitalism is not favored by millennials

So the ppl who actually do the work don't deserve to be paid a decent wage so that ppl who already have money can earn extra money off their work from a company that really doesn't need investors anyway but wants to play a my pe*** is bigger than urs CEO game. Unless you're a billionaire Idk how that makes sense in any society to support. As a small business owner I would love more ppl to have disposable income vs the elite 1% who will never set foot in my shop or need to rent a home from me.
Message 34 of 53
Established Contributor

Re: Capitalism is not favored by millennials

 And again, what is a "decent wage?"  Why should a high schooler flipping burgers at McDonald's or detailing cars at a Scrub-a-Dub be making $15/hr?  In most cases, that high schooler's "living expenses" are $0, as they are (usually) paid for by his guardian.  HIs only need for money would be for luxuries.  So if he needs $0 but he's making $2,600 a month, doesn't that make him a money hoarder?

 

 Many of those "elite 1%" started off as one of us poor folks.  Are you saying that its wrong to aspire to financial indepenance?  If you invent a new tool tomorrow that is a huge success and every mechanic in the county buys one for $15 and you become a millionaire, you are now one of those "elite 1%."  Does that mean we should automatically be jealous of you and call you a money hoarder that doesn't deserve it?  What about your Dad who invested in your prototype of the tool and also made a lot of money?  Is he a dirty capitalist pig, too?

What I'm saying is that its not as simple as "money hoarders are keeping the people poor."

 

 In reality, the best way to increase disposable income and grow an economy is NOT necessarily a wage increase, because a wage increase simply decreases the disposable income of the employer, meaning there's no net gain to the economy.  A payroll tax decrease WOULD be a true net gain to the economy.  The employer does not have to lay out more money, but the employee now has extra money to go out to dinner or a movie, or by that flat screen TV, or can now afford a payment for a better car, etc etc.

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Message 35 of 53
Member

Re: Capitalism is not favored by millennials

So to address your points. Number one you say why should a fast food worker make $15 an hour? The answer is because the school cafeteria worker isn't a teenager. Neither are the workers at the airports or most restaurants, hotels etc. that have families and children and no one can live off of $8 an hour.
Secondly the food service & retail is viewed as disposable but they actually can make or break ur company. See chic fil a.. So they are vital to business growth.
Thirdly if the food service industry pushes a minimum wage to $15 what does that do for the rest of the industries. Everyone worker wins from police & fire to nurses to garbage men etc.
Fourth you asked if I invented something and made a million dollars would that make me elite... No because I wouldn't use investors. I wouldnt short change my staff so that I can pay percentages to ppl that could care less abt my product or my staff or their families. It's amazing that somehow ppl viewed with money are more important than the creative mind and you are brainwashed if you believe that. Just look at an episode of shark tank...
No one is saying you can't make money, but the point is what kind of person says a worker can't make a decent living but a CEO can make a $14M bonus for firing ppl, how does that help us a nation?
Message 36 of 53
Regular Contributor

Re: Capitalism is not favored by millennials


Jaiel26 wrote:

...No one is saying you can't make money, but the point is what kind of person says a worker can't make a decent living but a CEO can make a $14M bonus for firing ppl, how does that help us a nation?

Based on the very short history of the United States, it seems to have worked quite well over the last 242 years compared to the rest of the world.

 

I get what you're saying, there are people out there that may not deserve what they have but I encourage you to look further down the road in your attempt to level the field. Mucking with 'who gets to choose who gets what in life' will only benefit the real elites...in my opinion it would be our wonderful politicians that would take the biggest slice of everyones pie as they gleefully reapportion the leftovers to the rest of us.

 

Oh wait...that's already occurring  Smiley Wink

 

The great State of California is raising the minimum wage to $15 over the next 5 years. The people that make that wage (and the rest of us) will be paying more for everything we buy... McDonalds, gas, groceries, rent etc. The ONLY people that will truly benefit from this will be the local and state tax collectors. As higher costs of all goods are shouldered by us as consumers, essentially negating any wage increase we thought we received, the total dollar amount that is taxed will go up. It's simply a sham, a clever guise even, that very few recognize.

 

Sorry for the rant... I do feel strongly about this.

Message 37 of 53
Member

Re: Capitalism is not favored by millennials

No one is saying level the field or everyone gets the same cut... There will always be haves and have nots. But the gap between worker and 'investor' is wider than ever to the point of job creators being forced out for investor revenue.. The argument always is no one benefits from wage increases.... but to debunk your own theory, if that were true the 242 years you spoke of would have never existed. Businesses would have died when slavery ended or we would hit a recession every time minimum wage went up. Have those things ever happened? What abt when women entered the work force did the system collapse? But to the contrary when greed took over in 1929 what happened? In the mid 2000s when greed took over the housing industry what happened? Meanwhile the middle class & the poor gets is fee'd to death just takes it in the arse and says well I just have to deal with it. The funny thing is everyone either worked or works or employs workers and somehow that's lost. Especially considering sidering this is a forum is which 99% of the ppl here are rebuilding credit which essentially means they didn't have enough money to get by. Yet somehow the mantra is still at least I'm better than the homeless guy. Smh
Message 38 of 53
Valued Contributor

Re: Capitalism is not favored by millennials


Jaiel26 wrote:
So to address your points. Number one you say why should a fast food worker make $15 an hour? The answer is because the school cafeteria worker isn't a teenager. Neither are the workers at the airports or most restaurants, hotels etc. that have families and children and no one can live off of $8 an hour.
Secondly the food service & retail is viewed as disposable but they actually can make or break ur company. See chic fil a.. So they are vital to business growth.
Thirdly if the food service industry pushes a minimum wage to $15 what does that do for the rest of the industries. Everyone worker wins from police & fire to nurses to garbage men etc.
Fourth you asked if I invented something and made a million dollars would that make me elite... No because I wouldn't use investors. I wouldnt short change my staff so that I can pay percentages to ppl that could care less abt my product or my staff or their families. It's amazing that somehow ppl viewed with money are more important than the creative mind and you are brainwashed if you believe that. Just look at an episode of shark tank...
No one is saying you can't make money, but the point is what kind of person says a worker can't make a decent living but a CEO can make a $14M bonus for firing ppl, how does that help us a nation?

If you're raising minimum wage for fast food workers to $15 an hour, it doesn't benefit anyone, including firemen. 

 

1. Firemen are paid by tax dollars. To increase the wages of the firemen, you'd have to raise taxes on the community. 

2. All other employers will need to raise their wages; thus, more cuts will take place (including layoffs). 

3. In addition to #2, prices will rise, and/ or companies will move overseas where labor is cheaper. 

4.In addition to #2, the layoffs will increase the unemployment rate; thus, putting a large burder on taxpayers (increasing taxes).

5. Teachers and school administrators will demand a higher wage, so school taxes will go up. 

 

You say you won't use investors. Investors intially raise money for the company. They are the company's owners. Many companies out there wouldn't have opened their doors without investors. CEO's themselves will be fired if investors are not happy. 

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Message 39 of 53
Member

Re: Capitalism is not favored by millennials

Economic nonsense... Police, Fire, Teachers etc have unions. Unions negotiate wages on cost of living. Minimum wages help determine cost of living, ergo raises for everyone. Higher wages higher prices yes. But when everyone has higher income everything is offset by money in the economy. Example: cost of living in NY LA or San Francisco is a lot higher than Cleveland Milwaukee or Jackson Mississippi. Wages are also higher in those cities. It balanced out. Money is like energy it's transferred not destroyed unless u have hoarders then its not in the economy. Firefighters police teachers etc make more money there and taxes aren't astronomical because of the money there balancing out cost of living. It's no different than a household budget. If you have $500 a month to spend on groceries you spend it. The person who needs to spend $500 but is only spending $300 can now afford $500. With your extra money you spend it on eating out or home improvements or clothes or a car note. Money that would have never went to anything but groceries owed effects other businesses. Nothing really changed but getting ahead of inflation. By your philosophy NYC and their 60,000 police force & 15,000 fire fighters & emits would decimate NYC yet its abt 15% of the budget...but i digress
Message 40 of 53