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I was reading a blog post (A New Generation Gap) in which Mike Neiss, a baby boomer, discusses his perspective of how the boomer generation "failed to build a solid foundation for those who will follow us. We have made a mess. We are not the victims of changing economic conditions, we created them." He goes on to say "the next generation may be the first in a long time (ever?) that are not better off than their parents. I think we baby boomers own that."
This is an interesting concept and question. Are we, the children of the boomers, worse off than our parents? Is Gen Y going to be remembered as the first generation that had it harder than our parents did?
I think NOT! In fact I think quite the opposite. I think we are at an advantage:
An additional piece that found interesting in Neiss’ post is his ending thought "I believe that our parents unwittingly made us soft. We had our needs and wants indulged by parents driven to make sure we had more than they had had as children. We can’t leave a great legacy without honest-to-goodness hard work." I find it ironic how similar this sounds to what is being said about Gen Y and not being willing to put in the work.
Call me an optimist or call me naive, but those are my two cents and for now that’s the attitude I’m stickin’ with. I’m proud to stand in excitement for what’s next instead of fear of the future!
I have considered this question a lot. As for your first point, I don't think we are the first generation willing to do whatever it takes, including not sleep. My father woke up at 4am every morning and drove 100 miles for 30 years to support our family. Are young people today willing to do that? I'm not sure. I certainly don't want to. But generally speaking, I think we are no better or worse off than our parents. Life is simply different. And it will be different for our children as well.

I have to say that I love reading posts where someone takes question A and answers with reply 1. Better or worse is the question, but the answer is about how an individual (depending on their background and beliefs) can make a situation more palatable or even overcome a situation. The situation I think could be better described as "what are you willing to really do to make your situation better?". As for the original question, in cold hard numbers, we are all worse off. Before you unload on me as a pessimist, answer these 4 questions.
1. How much credit card / student loan debt do you have directly related to the cost of an education (i.e. books, living expenses, tuition, fees, etc.)?
2. How many of you can afford to purchase a home right now with your current wages/salary in a decent neighborhood and raise 1 child in that house before moving?
3. How many of you can say you have a retirement account balance greater than 5% of your annual salary currently being supplied by someone else than you (i.e. pension, employer benefits, etc.)?
4. How many of you have seasonal/food/medical allergies that your doctors claim are "epidemic", "never seen as much as I do now", or "potentially life threatening"?
The boomer generation was raised on a generation that could find housing, could finance their life with massive debt (other than extremely long term windows for mortgages), had retirement systems than were not dependent on their individual efforts (in case of disasters/bad decisions/etc.), and were able to live to ripe old ages without worrying whether someone on the plane has peanuts in aisle 4. All of these basic societal functions were handed to boomers and boomers carefully and systematically destroyed, declawed, or complicated them to the point that you and I have to seriously think about how or even if to put this Humpty Dumpty back together.
I agree that each person has many resources, or even possible behaviors that can take a bad situation and make it work. But do not wash the hands of our parents' generation clean of the blood of their work. They have created uncertainty and crises where there was none 2 generations ago. And the reasons that our grandparents' generation had those assurances? Cleaning up from the previous generation's mess from trashing the previous set of assurances (homesteading, manifest destiny, open immigration, natural resource based economics, etc.)

EDIT: meant to say with no massive debt...

Your post resonates with me, a Gen Xer. In a way, the baby boomers have left a mess behind, look at all of the economic woes we've experienced in the last year. Most of the people running these companies were baby boomers.
When I look around at the large company I work for, there is definitely an aging workforce and many of them (not all) have moved into upper management and have lost touch with how to actually do something, so they create bureaucracy. Polices, procedures, legal agreements, etc.
This is the mess I see that needs to be cleaned up. And us Gen Xers don't have the population numbers to create change so we need you Gen Y people to help step up and be vocal about the change you want to see.

Interesting topic, Elyse. I think people are spreading a lot of fear by continually discussing which generation is "better off". The reality is that each generation defines success differently. I don't think Gen Y defines success as a huge house in the suburbs, 2.5 kids and a steady job. I think Gen Y is more interested in urban living, entrepreneurship, and social causes. Our parents didn't leave us any worse off because we don't want their dream.

Very interesting. In some ways I think the biggest difference is it now takes two incomes to survive in most places, at least for part of your earning career. That's probably worse off, but probably owe more to globalization for that than blaming boomers. I hope all the qualities you cite about us become true. I'm not sure we've really had it all that hard *yet*. It's really the tip of the iceberg now I think, especially with Gen Y being new to the workplace.
@Chris: I think you ask the wrong questions, and know that those aren't "goals" for everyone, but ok I'll play. I'm 24 and:
(1) No credit card debt, no student loan debt. My boomer parents stressed how important this was. I lived at home and worked through college, and now live on my own and am working to pay for a second degree, but it's all coming out of pocket.
(2) I bought a home about a year ago, thanks to the housing crash. Working since I was 17 and living at home meant I had time to save up money. I should add also I was married, but my husband is my age and doesn't earn more than I do (typical entry level salary). So yes it can be done, but harkens back to my first point earlier that you really need TWO salaries for a lot of things like home ownership.
(3) I have a pension (7% match of my income is contributed) and a 3% match on my 401k. I'll be fully vested in another year. Companies with pensions are still out there, but even if they are not, retirement planning is now our responsibility. I contribute 12% to my 401k because if your company ever goes bankrupt in the 40 years before you retire, you can't count on that pension, or they could discontinue it at any time leaving it mostly worthless. But companies with good benefits are still out there, and they reward employees (even young ones) who stick around a few years to vest.
(4) I don't have allergies, I don't know what to tell you.
The world is a scary place, it always has been. Yes a lot of changes are happening (global warming, using up resources) and that's very scary. But would I change places with my Grandfather and be sent halfway across the world to fight WWII? If you haven't seen Ken Burns "The War" go see it. It wasn't a happy place, and not the idealized way we see it now. Or my parents and Vietnam, drafted with no choice and knowing friends who didn't make it back. Or my great-grandparents who were farmers and that was it. You were raised on a farm and the oldest son inherited it. You lived with family your whole life, or maybe married into another family. There was no opportunity to "find yourself" or find something you love. I think we are as lucky as the last two generations in having an opportunity to find careers we like, and an opportunity at the best education in the world. I'm generally not an optimist, but the things you choose to worry about do not concern me.