Young adults: Growing up, not moving out
Good news for US economy?
- Duration 8:32
- Date Aug 4, 2012
Good news for US economy?
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Line up but not getting out as the jobless -- is stuck above 8% for the 42 straight month.
A new report showing nearly one in four young adults are still loving home -- moving back and with mom and dad.
Sounds bad but someone says this could be good for the economy -- I -- -- -- -- -- welcome to cash in hand.
I -- -- this week we have Wayne Rogers Jonathan Hoenig Tracy Byrnes and John Layfield and joining us this week Julian Epstein so what I'll be OK it's only bill.
-- -- with mom and dad can be good for the economy how do you fear that one.
It can't be good for the economy deadly is bad for your love life but as far as the economy is concerned -- reason people haven't had to move back home is because of the high joblessness.
Out there right now which is not good.
But when you look at parents that don't have children that both but especially when they both worked.
They know a lot of disposable income when people were able to live -- -- they have more disposable income.
That part is good for the economy look when I got cut from the National Football League I had nowhere to go on -- -- my parents like on my feet again.
Thank goodness I had a family that you could do this with and played good is that a lot of people out there have failed because otherwise.
These people end up being supported by the government in one way or another that's what family is all about.
That part is good not only for the economy -- good for America.
Are -- seven Jonathan -- -- actually have a -- today don't wanted to show this to you especially because this is front and New York this is from Friday.
In this is talking about exactly this wave of kids Jonathan that are moving back in with the parents.
It affects their parents economically they've got to support.
These kids right and affects the economy -- in fact it's terrible with the economy act totally disagree with John.
You know they economist is -- the number one variable for sovereign credit risk essentially determining whether or not a country is likely to default.
-- the percentage of young men who live with their parents in -- look at this graph all the way up there on the -- upper right hand corner that's Greece 60% of the young man look at their parents and Portugal Spain it's 50% -- -- and to your point I know there's always circumstantial there's -- -- reasons my kids might want live with their parents.
But my got a thirty year old is -- fully action -- adult.
They should be out of their own in fact is that shell -- deliver what -- folks.
The economy is gonna look.
They -- Jonathan look at jobs in the thirty year old -- -- fifteen year old or forty year old if they don't have a family to move back with that government ends up supporting him -- -- to become a burden.
Along the system -- played good news that they have a family to go back to what.
Well almost like a lot went out -- with -- we have an hour.
Now that exactly exacerbates that we've government now that says you can stay on your parents plan that props up housing prices and a young people can't afford them so in fact our own system at under the current president.
Exacerbates that makes people more likely to live at home and he had another.
But Julian does it affect the economy if we have this wave of kids adult kids -- home.
Well Jonathan -- feels right Jonathan hope Hoenig was mostly right and telling me that last point about the health care plan as a point is that but what I mean there is there there is there is there's lots of good reasons as Jonathan says that M at the fact that families are supportive of people that's very good.
The fact that intergenerational.
Living and ever ever housing can be very very helpful in terms of grandchildren spending time with -- parents.
But Hoenig is right that this -- a primary indicator that they labor market -- unhealthy.
And even what we had a growing economy between 2002008.
When it comes -- about 3%.
Labor wages were stagnant during that time that is the central problem that is facing our conference's central problem.
That faces everything we talk about whether it's the housing market -- anything else that we talk about.
When Obama came into office -- we were losing 800000 jobs a month then the this problem was really really bad now we're gaining on average 200000 jobs a month so hopefully it's getting better but the central problem we face is the fact that wages have been stagnant now for thirteen years.
Wayne Rogers unemployment among the nation's youth is -- 12%.
That is a big reason why -- moving home.
But that is that an indicative cited the economy or does that make the economy worse.
-- I think it's a sign of the economy these things shift from time to time you know if you have a an economic contraction or an economic expansion they followed that and it's -- can't say -- say -- a lagging indicator if you will.
That will change in time I wouldn't worry about it -- heavy what do you think about all of us I mean did you ever have to go.
Little -- at the body and -- -- all our since graduation yes -- I won't come a multitude of times for a multitude of reasons some of them good some of them that and I am fortunate enough.
To have Stanley as John mentioned I don't like to do the same for my kids but get the economic side of it.
That means -- -- not buying first time home so it's hurting the housing market thirteen point 5% of kids between 20/20 five were unemployed.
That's not a good thing that means people don't have their own electric bills their own food bills all that hurts the economy at the end of the day.
Can you say you moved back into your building a brand new home sure you can say that -- and that helps at the end so there are two sides in a story and a but fortunately we got a large -- -- kids moving home right now Jonathan yeah and -- That they didn't have that 26000 dollars in student then the baby incentivized by the government to take a trip to the airport than they could pour down rain and I'm home I'm home didn't -- less regulation on businesses they could get a part time jobs some bad things come in move out and got their parents -- -- and that should be in my mind every parents hope is that the kids actually move out.
Create their own lives become independent self sufficient.
We've got a government that sets it up in just the opposite direction -- the giants.
-- -- -- -- Kids moms and and I have.
So wait a casino a lot in a lot of cultures a lot of families this is what they did this is how -- is I mean.
In the kids look at home mom and dad -- at home the grandparents at home and that's how the system.
Works -- -- maybe that's not good.
-- -- you at all there's a different argued that that's a moral question yes and you're saying families -- -- Is a good thing we all agreed that I think everybody agrees that that was a tradition for many years in Europe where three generations might live in the same house because the there was not this thing but this is a different kind out of -- -- era in which in which.
Not always out of necessity Jonathan some people like me you know.
I mean this it's not just always out of necessity in this case however it is an -- generation's way we have booms and -- and booms and busts -- you have.
The good thing that's going on also that.
Couple of the living together now as opposed to getting married then not creating.
Marriage is now the average ages of 28 for a woman.
They're having families letting -- so that they need that production about household is coming much later in time now and it's.
-- -- -- -- -- -- -- -- -- You know it -- I think it is a cartoonish view of the world to say that the reason that we have these economic problems because of taxes and regulations.
You know we're businesses have been surveyed Obama has repealed hundreds of regulations the regulatory burden on businesses that was probably lower than it ever has been taxes.
Already 15% of you know usually -- All right I'm carefully go back again are -- -- majority don't -- that battery that the global the global economy right now we -- seeing downward pressure on wages and we are seeing out sources of many of of hundreds of thousands of jobs here that the central problem whereas in the labor how we're.
Bit later on a little -- but we.
Are not really -- not in the workforce is ridiculous to -- -- the regulations -- -- the tax structure is killing us.
And always comes back again and he did yeah.
They later on in the show's not on here Madonna -- I -- Will say one thing about all of this is that.
Again going back to the economy any effect on the economy I think that lack of spending an eleven data that you can see it's a lot a lot of the consumer spending data has been.
A pretty -- we get the jobless number on Friday a lot of is really adds up to the fact that the economy is suffering.
And that this even the -- it's like a lagging indicator it's indicative of of a weak economy that is not improving.
It's all of the economic data is -- Cheryl and you know again look at this look at the data that's with a rubber meets the road.
The number one variable of whether countries get -- the -- is whether or not kids.
Live with their parents at home young men -- with their parents so you're on -- -- it tends to -- terrible harbinger for economic and.
Yeah not -- kids put it all understand it's complete economic issue look take politics out of this completely because I don't think they belong -- this is an economic issue kids living at home late at home because they don't have jobs can't afford to live on the wrong.
That is a bad thing what I'm saying -- having a family to fall back -- Very people who lot of people don't have that this world that's a good thing for his country all right guys we actually.