As a dirt-poor boomer (or Generation Jones-er as some term us extra-late boomers), I don’t have a lot of sympathy for others in my age cohort who complain about their kids and grandkids not getting ahead when they’re occasionally back in Canada from their second or third extended exotic foreign vacation since before the snow fell last fall. (It’s been more than a decade since the last time we were able to take any kind of vacation … and that was just a week’s driving holiday to South Carolina.) The Zoomers (and Millennials, and even some of the Gen X’ers) have valid complaints that the boomers generally are not capable of understanding, as John Carter explains:
I’m going to have a little rant, here, so I’ll start by emphasizing: Not All Boomers. Look, my mother is a boomer, and I love her dearly, in large part because she represents the opposite of so many boomer stereotypes. Many of you reading this are boomers; I know this because you’re in the comments, writing some of the best comments, you can ask anyone, the very best comments, everyone says it, it’s true. I know full well that much of what follows doesn’t apply to you, because you’re the good ones, the exceptional ones, the few, the proud So, please, do not take any of this personally.
With that said.
The shouting match broke down along the expected lines. Boomers – including spiritual boomers – loudly agreed with O’Leary’s remarks. If you only spend $2 a day on lunch, they insisted, the resulting $26 a day that you save adds up to $9490 a year; after 5 years, you’ve got the down payment for a $250,000 house. Checkmate, you financially illiterate layabouts!
Zoomers, millennials, and Gen-X replied that $250,000 will get you a leaky shack in rural Arkansas with black mold in the unfinished basement; that by the time you save up the money for the down-payment, that shack will be going for $500,000; that recent immigrants receive government assistance to get onto the property ladder (along with preferential employment) and so do not have to spend years of their lives saving up at all. Disaffected youth (and these days, that is just ‘the youth’) generally heaped scorn on the idea that it’s even possible to save in this economy, or that there’s anything worth saving. “If you live on instant noodles and margarine sandwiches for twenty years, you too, my son, can one day afford a van down by the river.”
As an aside, isn’t it incredible how fashion has barely changed since Chris Farley did this skit on SNL back in 1993? Stuck culture is everywhere.
Image and caption from Postcards from BarsoomI can see both sides of this. I tend to live frugally myself, not so much because I consider it virtuous but out of simple necessity. Throughout my 20s and 30s I was a career student living paycheck-to-paycheck, as a result of which I became very accustomed to cooking my meals and buying only what’s necessary. I’ve never once used DoorDash or Uber Eats. I buy my clothing at thrift stores, only purchase a new laptop once every decade or so, and have somehow managed to avoid racking up much in the way of debt … and by ‘somehow’ I mean that I’ve never owned a house or a car, partly because I changed continents too regularly to make such big-ticket purchases practical or necessary, but mostly because I couldn’t afford them. Even finishing my doctorate did not really bring anything you could call prosperity in its wake: my first position was for the princely some of just over USD30,000 per year. By the time I reached the median national income in my late 30s, I’d gotten so accustomed to frugal living that money started piling up in my account just because I had no idea what to do with it, and little inclination to spend it because I was honestly just happy to not have to worry about budgeting to make rent. That turned out to be very helpful when DEI came for my career track; I lived on those savings for a couple of years after.
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There was a famous Stanford experiment called the Marshmallow Test which measured time preference in young children. A child would be left in a room with a single marshmallow on the table. They were of course free to eat the marshmallow, the experimenter would tell them, but if they didn’t, then later on they would get a second marshmallow. Children with high time preference – meaning that they strongly prefer the immediate reward to the hypothetical future reward – would cram the marshmallow into their candy-holes without a second thought. Children with low time preference – meaning that they value the future at a similar or even higher level to the present – would patiently wait, and be rewarded with a second marshmallow. These children were then followed, and it was demonstrated that the children with low time preference demonstrated better life outcomes: they maintained higher grades, were less likely to fall into debt, were less likely to develop drug addictions, were less likely to get pregnant before marriage, were less likely to get fat, and so on. All of which makes sense. The capacity to endure present pain – by studying, dieting, working out, what have you – in order to obtain a better future outcome is obviously going to be linked to better outcomes.
How would a smart kid react if the experimenter failed the marshmallow test?
For instance, say the experimenter simply lied. There was no second marshmallow; the child waited for nothing. Or, even worse, the first marshmallow was snatched away, and replaced with two marshmallows, each one half the size of the original? Or a third the size? Here are your two marshmallows, sucker, joke’s on you. What would the results be if, after this experience, the children were tested a second time? I don’t know if such an experiment has ever been conducted, but the outcome is not hard to guess. Every single one of the children, whether they’d passed the marshmallow test the first time or not, would scarf down the marshmallow the moment it was in front of them.
The capacity for low time preference may be largely innate, but whether it expresses or not is entirely a function of social trust. In order to defer gratification for a greater future reward, one must believe that there is a reasonably high chance of that reward manifesting. The less likely the future reward becomes, the more steeply a rational actor will discount the future.
I don’t want to minimize the hardships that boomers endured when they were young. Boomers worked hard, and they didn’t enjoy the same conveniences that we enjoy now. They fought in the Vietnam War (well, about 3% of them), they spent most of their lives under a nuclear sword of Damocles, they suffered through the oil shock and stagflation in the 70s, they were punished by double-digit interest rates in the early 80s, and they spent their working lives trying desperately to stay one step ahead of the skyrocketing inflation that was unleashed when Bretton-Woods fell apart and the last vestigial support of the gold standard was kicked out from under the brrrring money printer.
But, despite all of that drama, the one thing boomers could generally rely upon was that – so long as thermonuclear annihilation was averted – things would generally get better. Technology would advance. Working conditions would get safer. The special effects in movies would become more convincing. Houses would get larger. Cars would get nicer. Air conditioning would get quieter. The environment would get cleaner. Society would become more just. The world would become freer and safer for democracy. And so on and so forth. Baby boomers have enjoyed a charmed life such as no other generation has known: free of major wars, full of technical wonders, in which whatever difficulties you might endure now, you could generally count on the future being a better place. For the boomer, deferred gratification always had a payoff.
For the zoomer – and the millennial, and generation X – this has simply not been the case. After 9/11 a police state panopticon settled over society. The 2008 real estate crash pulled the rug out from under the millennials, after which real-estate got ZIRPed to the Moon. Mass immigration pumped real estate demand further, while undercutting wages and rendering public spaces steadily more alienating, unpleasant, and dangerous. Black Lives Matter immolated quaint notions of racial harmony. DEI threw young white men, their careers, their futures, and their unborn children to the wolves. COVID stole two years from young people’s lives so that old people could feel safe from the coof. Now, AI^2 (Artificial Intelligence + Actual Indians) means that the only thing the young expect in their future is gig work in the sex trade industry (until robots take that, too).
