Millennials Are Not an 'Entitled Generation'
The young have been dealt an insecure economic future, thanks to events beyond their control. Rate hikes could only make matters worse.
Never had to sacrifice?
Photographer: Spencer Platt/Getty Images
It may be inconceivable to the moneyed class, but there are in fact very good reasons not to raise interest rates quickly or dramatically. Yes, inflation is worryingly high, Ukraine is burning and Covid-19 still threatens to upend supply chains. However, the reality many Americans face — if not low-income and middle-class workers across the globe — is quite different from what the stock market and go-to suite of economic indicators tell us.
Millions of Americans haven’t yet recovered from the Covid-19 recession. Black unemployment, at 6.6%, remains stubbornly higher than the overall rate of 3.8%, and is double the figure for Whites. Unemployment among Black women actually rose in February from the previous month. The gender pay gap also remains wide — women are paid on average 22% less than men — and financial security is elusive. Just 9% of low earners say their pay had kept up with the cost of living, even as wage growth broadly accelerates.