This is a fantastic article discussing the economic troubles facing recent college graduates, a.k.a. “Generation Obama:”
This is Generation O: the age cohort that contributed, registered, volunteered and voted for Barack Obama with greater intensity than we have seen since at least the 1960 presidential election. Since then, the effect of President Obama’s failed economic policies has fallen most disproportionately on them.
The unemployment rates among Generation O not only suggest personal disappointment, but also large and lasting implications for them and for society.
Things will be difficult for some time for recent college grads:
A paper forthcoming in the American Economic Journal Applied Economics found that graduating in a recession leads to earnings losses that last for 10 years after graduation.
The authors, University of Toronto economics professor Philip Oreopoulos, Columbia University professor Till von Wachter, and economist Andrew Heisz of Statistics Canada, found that earnings losses are greater for new entrants to the labor force than for existing workers, who might see smaller raises, but who have jobs. In addition, recessions lead workers to accept employment in small firms that pay lower salaries.
That, in turn, may help to explain why there is in our country a creeping fear of downward mobility, a prospect that Generation O will not do as well as their parents.
Young male graduates have been particularly adversely affected, with an unemployment rate of 11 percent, compared to 7.9 percent for women. Five years ago male graduates had an unemployment rate of 5.8 percent, and the rate for females was 4.5 percent.
The RealClearMarkets article closes with this:
It’s not just bad luck, or President George W. Bush’s fault, as Mr. Obama tries to suggest. Mr. Obama has promoted an Old Economy model that favors big corporations, labor unions and more government. But Generation O thrives best in a New Economy model that favors nimble start-ups, hard-charging union-free workplaces and minimal government interference.
Generation O voted for Barack Obama believing him to be a new kind of leader, but he has delivered them an Old Economy with European-style mandates (think Obamacare), sclerosis, and dysfunction. They put him in the White House, Barack Obama has consigned them to their parents’ house. Clearly, only one side made out well on that deal.
Be sure to read the rest, it is a real eye-opener.