Today, I react to an article saying that Frugal Millennials Are Ruining The Economy - Enjoy! Add me on Instagram: GPStephan
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The Article: https://www.cnbc.com/2019/10/06/millennials-are-to-blame-for-sluggish-economy-raymond-james-report.html
Well, here’s my take on it…as a millennial…who saves a LOT of money.
If people are making less money, it causes them to be hyper-focused on getting the best value possible - and being incredibly selective about where they spend their money, when they DO decide to spend it.
But there’s also another interesting perspective…the Chief Financial Analyst from Bankrate believes that, because the Great Recession happened during a financially formative time for many millennials, they don’t have the same spendy consumption mentality as previous generations.
https://www.inquisitr.com/2942310/millennials-are-saving-more-money-than-everyone-else-and-the-reason-is-surprising/
All of that caused SAVING to be at the forefront of our minds, even if it’s just out of an abundance of caution…not to mention, there’s recently been a strong cultural push towards minimalism, frugality, and financial literacy.
So given all of that, is it TRUE that millennials are to blame for the sluggish economy? And…the answer to that is….YES…and also, a NO.
It’s no surprise that our economy DOES benefit from a surplus of spending...the more money that gets spent, the more it circulates throughout our economy, and the more the entire economy can grow. When the spending stops, that’s bad for business…and bad for growth…
However…if people aren’t spending money…it has to go somewhere. And in this case, the more people are saving - generally, speaking - the more money they can INVEST. This money goes back into businesses, which can use it to further innovate and adapt…which, again, winds up back into our economy...improving it on a macro scale.
So as long as people aren’t just saving all of their money under a mattress…a higher personal savings rate can be BAD for certain business, GOOD for our economy, and GREAT for the individual who’s able to save more - if it means they can invest it.
And overall, based on the original article that brought us here in the first place…I think we ARE seeing signs of a cultural shift AWAY from reckless spending, and into an era of more thoughtful, impacting purchases.
Millennials want more value, we want lower prices, we want more flexibility, and we’re willing to consume less - overall - to get it. And even though we’re getting paid less, and our expenses are going up beyond belief…how we chose to spend our remaining money not only says a lot about us, but where society is going in general…which is placing a stronger emphasis on saving money, living below our means, increasing our credit score, being smart with our money, and smashing the like button.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1001): https://act.webull.com/k/Vowbik9Tm5he/main
Merch: http://www.GrahamStephanStore.com/
Graham Stephan Discord: https://discord.gg/pazcWtR
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
The Article: https://www.cnbc.com/2019/10/06/millennials-are-to-blame-for-sluggish-economy-raymond-james-report.html
Well, here’s my take on it…as a millennial…who saves a LOT of money.
If people are making less money, it causes them to be hyper-focused on getting the best value possible - and being incredibly selective about where they spend their money, when they DO decide to spend it.
But there’s also another interesting perspective…the Chief Financial Analyst from Bankrate believes that, because the Great Recession happened during a financially formative time for many millennials, they don’t have the same spendy consumption mentality as previous generations.
https://www.inquisitr.com/2942310/millennials-are-saving-more-money-than-everyone-else-and-the-reason-is-surprising/
All of that caused SAVING to be at the forefront of our minds, even if it’s just out of an abundance of caution…not to mention, there’s recently been a strong cultural push towards minimalism, frugality, and financial literacy.
So given all of that, is it TRUE that millennials are to blame for the sluggish economy? And…the answer to that is….YES…and also, a NO.
It’s no surprise that our economy DOES benefit from a surplus of spending...the more money that gets spent, the more it circulates throughout our economy, and the more the entire economy can grow. When the spending stops, that’s bad for business…and bad for growth…
However…if people aren’t spending money…it has to go somewhere. And in this case, the more people are saving - generally, speaking - the more money they can INVEST. This money goes back into businesses, which can use it to further innovate and adapt…which, again, winds up back into our economy...improving it on a macro scale.
So as long as people aren’t just saving all of their money under a mattress…a higher personal savings rate can be BAD for certain business, GOOD for our economy, and GREAT for the individual who’s able to save more - if it means they can invest it.
And overall, based on the original article that brought us here in the first place…I think we ARE seeing signs of a cultural shift AWAY from reckless spending, and into an era of more thoughtful, impacting purchases.
Millennials want more value, we want lower prices, we want more flexibility, and we’re willing to consume less - overall - to get it. And even though we’re getting paid less, and our expenses are going up beyond belief…how we chose to spend our remaining money not only says a lot about us, but where society is going in general…which is placing a stronger emphasis on saving money, living below our means, increasing our credit score, being smart with our money, and smashing the like button.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The dollar is worth even less now than it did during the depression.
Great video !
graham do you still do real estate or are you only doing youtube now?
No… how can economy get bad if they print unlimited money? huh
I spent $60k on a useless degree, you're welcome.
Fu–k the student debt. Its a rip off, dont pay it. Just like when I got a 2.8k bill for a 5 minute ambulance ride over nothing. Since they were greedy bastards, I didnt pay a cent. That should get the message across. Send that crap to collections ! idc.
The Economy is there to work for me, I’m not here to live my life for the economy
They sell drugs out of the basement window
Idk, it's a hell of a flex to say we killed Coca Cola.
My demands are simple, put cocaine back in you cowards!!!
If boomers want me to spend more money they can sell me a house at a price an average non-college-educated worker could afford, like when they were my age.
I make 18/hr with no side gigs. I can't afford an apartment. I rent rooms and save money because life happens. I need dental work. Oh, I have something wrong with me. Must go see doctor and then pay for that procedure. I have no wife or gf. So I pay for everything on my own. Wage stagnation bigger businesses doing everything to keep as much money as they can while eliminating every paycheck they don't have to pay out.
Alternative theory: The economy is sluggish because so many wealthy boomers are hoarding their wealthy for a 'wonderful retirement' or rainy day. Weren't they complaining about no Millenials available to buy their McMansions because they wanted to downsize just a few years ago?
This is a generational change that is happening, the excesses of the boomer years are slowing down, values are changing for the younger generations. This will be a slow process, but I do see it happening.
Graham, can you please address the theory behind us in our 30's won't actually get social security due to the baby boom?
Wanna actually be economically literate? Try Jean-Baptiste Say
We are so evil, lol.
the paradox of thrift can be illustrated the best by the lack of sales on Graham Stephen's merch store 🤑🤑🤑🤑🤑
I save about 3000 a month. I have no idea what to even spend that much money on.
aren't millenials helping the economy by destroying the "like" button?
Dude, YOU'RE a MILLENIAL!
Like your videos and all…but the expression is 'wreak havoc', not 'wreck havoc', FYI.
So basically the higher the stupids who spend more, the better the economy would be
Graham take into account people's talents. If the whole market were to shift to healthcare not everyone may have the talent and the ones that don't will be unemployed if their industries go away. For example (and I picked this because it's the industry you pick on) if someone has mastered the art of crafting a perfect cup of coffee and is the best barista in the world but if were to stop buying coffee that's made and only make it at home coffee shops shutdown and his talent and skill is not rendered worthless. This also affects you though. If you want the coffee shop owner to be a customer or client in your business but you encourage everyone to do the smart and not buy coffee well that owner no longer has the money to support your business if he cannot get support for his business. I'm sure you wouldn't mind selling a house to a succesful coffee shop owner. This goes true for all business if you want the people who own those business to support your business you can't expect that without supporting their business. Also think about the number of people that would be laid off if everyone was frugal and stopped buying things. Now I don't think this is a justification for spending recklessly but deciding not to spend at all and only save is not good for the economy either. There is a balance that is needed in order to keep enough money circulating and moving through hands in order keep the economy going.
What we need is a govt that serves people instead of corporations. M4a ,ubi, and free college and student debt forgiveness would be a good start. Bernie had the solutions,but our govt is too corrupt and both democrats and republicans in congress are evil hypocrites that serve the rich
What have you done to help solve the homeless problem in La
This is true, I guess it's just easier to blame a generation for not spending enough than to admit that they're not getting paid enough because there's problems with the economy. It's always the younger generations fault. Don't worry I'm generation X and we were all supposedly slackers
You can't spend what you don't have
Can we get your coffee recipe, please?