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Generation Z Debt Crisis: Navigating Financial Struggles in the Era of Bidenomics

Generation Z Debt Crisis: Navigating Financial Struggles in the Era of Bidenomics

Generation Z Struggles with Rising Debt Amidst Economic Challenges

Advice for Gen-Zers in Debt

It might sound strange, but here's a piece of advice for Gen-Zers who are heavily in debt: put your smartphone down, cut back on your DoorDash and Uber Eats expenses, and consider canceling a few of your streaming subscriptions. Despite the White House's calls for student debt cancellation, the spending spree is over.

The Alarming Debt Load of Gen-Zers

The increasing debt burden carried by Gen-Zers is a cause for concern. The average credit card balance for individuals aged 22 to 24 was $2,834 in the first quarter of 2023, compared to an inflation-adjusted average balance of $2,248 during the same period in 2013, as reported by the Wall Street Journal, citing new data from the credit-reporting agency TransUnion.

Effects of Bidenomics on the Young Generation

Gen-Zers are coming of age in a time when Bidenomics has proven to be a failure, leading them to financial ruin. "This is a generation that is feeling financial stress in a more acute way than millennials did a decade ago," noted Charlie Wise, head of global research at TransUnion.

Concerns About Bidenomics

On Tuesday, billionaire investor and Duquesne Family Office Chairman & CEO Stan Druckenmiller criticized Bidenomics, warning that the Federal Reserve and the federal government "misdiagnosed Covid and thought we were going into a depression." He expressed concerns about the federal government's massive fiscal spending, which was previously described as a "stealth stimulus" driving Bidenomics. Meanwhile, Federal Reserve Chair Jerome Powell has been facilitating the Bidenomics disaster by spending $1 trillion every 100 days. With the threat of stagflation looming, the US economic situation is rapidly deteriorating.

Gen-Zers' Complaints About the Economy

Gen-Zers, like the majority of the working poor affected by Bidenomics, have been vocal about the poor economy they were handed after taking out $100,000 in college loans. Many have expressed their dissatisfaction on various platforms:

"I don't want to work my tail end off, wasting all of my life working, just to barely be able to pay my bills"

It's important to note that this mindset is not unique to Gen Z. Every generation goes through this. It's a struggle that has been depicted in films like Reality Bites, where a group of 20-somethings in the early 90s grapple with the same issues and emotions.

Impact on Biden's Approval Ratings

The Biden administration and the Democrats face a serious problem as recent Gallup polling data shows a sharp decline in the president's approval ratings among 18-29-year-olds.

Struggling Gen-Zers Share Their Stories

The Wall Street Journal shared several stories of struggling Gen-Zers fresh out of college. One such story is of Lindsay Quackenbush, who was recently laid off from a publishing company that paid her $60,000 a year. She is now unable to pay off her credit cards in full and is only making the minimum payments while she looks for a new job. Another story is of Adriana Cubillo, who struggles to make ends meet on her nearly $30,000 annual salary as a customer-service representative for an insurance company.

The Problem with Real Wages

One of the issues facing young people is that real wages have not kept pace with inflation. In 2020, the median annual wage for college graduates was around $59,000, which has only increased by $2,000 to $60,000. This is one of the reasons why young people are accumulating credit card debt to get by.

Impact on Credit Scores

Data from Credit Karma shows that credit scores have taken a hit. The decline is more severe for millennials with credit scores between 660 and 719, whose scores fell by 26 points. For Gen-Zers, their credit scores fell 14 points to 720.

Final Thoughts

With the recent emergence of stagflationary risks and US macro data showing a slowing economy with high inflation, it's clear that young people are facing significant financial challenges. Perhaps they are spending recklessly because they believe that Joe Biden and the Democrats will bail them out, as suggested by Marxist teachings. Or maybe they are simply the most gullible generation ever. What do you think about this situation? Share your thoughts with your friends and sign up for the Daily Briefing, which is delivered every day at 6pm.

Some articles will contain credit or partial credit to other authors even if we do not repost the article and are only inspired by the original content.

Some articles will contain credit or partial credit to other authors even if we do not repost the article and are only inspired by the original content.

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