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Anya Kamenetz Generation Debt

Anya Kamenetz, Generation Debt

The Big Issues for Young Voters

by Anya Kamenetz

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Posted on Tuesday, March 25, 2008, 12:00AM

A few weeks ago I took a train all the way up the beautiful Hudson River to visit an upstate New York community college.

The snowy, wooded campus was populated by students and faculty who clearly cared a lot about their school but lamented how economic pressures detract from the learning environment. They talked about students in their mid twenties who are struggling to balance school with full-time jobs, family pressures, and even childcare.

All too often, these students are sitting through classes tired and disengaged, looking at the programs as nothing more than a means to acquire a certain income, but not having a clear understanding of how to get from here to there. It's gotten so bad that the college even held an event for students titled, "Why Are You Here?"

The problems on this campus exemplified some of the issues of Generation Debt. Community colleges, after all, are educating half of our nation's college students. And I had come here to talk about a specific set of solutions -- political solutions. I believe young people have a chance to really make an impact in this presidential election, and our agenda is first and foremost economic.

There are 43 million Americans between the ages of 18 and 29. The stereotype that youth are apathetic is far outdated. Youth voter did take a dive after 1972, which was, ironically, when the voting age was lowered from 21 to 18. It kept going down, down, down, until 2000. But while a generational gap does persist, between 2000 and 2004, turnout among 18- to 29-year-olds jumped from 40 percent to 49 percent of eligible voters, according to CIRCLE.

Young People Rocking the Vote

And in this year's primaries, young voters are turning out in record numbers. For example, in Iowa, where Senator Barack Obama (D-IL) scored his first-in-the-nation victory, his margin of victory in the caucuses was easily accounted for by the very high youth turnout in that state.

Youth voter turnout tripled in Iowa, Missouri, Mississippi, Oklahoma, Florida, and Georgia; nearly tripled in South Carolina, New Hampshire, and Texas; and doubled in California, Louisiana, and Massachusetts. Polls show that young people are following this election just as closely as older voters.

Just as it's a myth that young people don't care about voting, it's equally untrue that they don't care about economic issues. In late February a nationwide poll by Rock the Vote found that jobs/the economy was the single top issue named by voters under 30. Education/cost of college and health care/prescriptions also made it into the top four issues, along with Iraq.

Young voters are right on; these are the same Generation Debt issues that I write about in this column week after week.

The economy: In the current job market, young men are earning on average 12 percent less -- after inflation -- than their fathers a generation ago. Workers under 25 are twice as likely to be serving time in a temporary, part-time, contract, freelance, or other job that's not quite a real job.

Education: The cost of higher education, of course, is a very serious concern. On the one hand, the penalty for not going to college is higher than it's ever been. Workers with a bachelor's degree are earning about $50,000 a year, and high school dropouts average just $23,000. On the other hand, over the past 30 years, after inflation, private and public college tuition has doubled. And the way we pay for college has changed, too, with two-thirds of students now borrowing an average in the five figures to get that degree.

Health Care: Young people are also the largest and fastest-growing group in the country without health insurance. A recent survey by the Kaiser Family Foundation found that 42 percent of young people are very worried about being able to afford the health services they think they need. Only 30 percent of those 50 and older share that sentiment.

What Will the Candidates Do?

So young people are fired up about this election, and they understand the real bread-and-butter economic issues that unite them as a generation. The question is whether the candidates they support are going to give them the policy answers they need.

Realistically, the ability of the federal government to reverse the Generation Debt problems is limited in many ways. Our leaders can't do much to ward off the coming recession. They can't put up trade barriers to halt the progress of globalization and increasingly high-skilled jobs going overseas. They can't roll back time and provide us with the same high-wage, unionized manufacturing jobs our grandparents enjoyed, or create another run-up in house prices that will make us safe and sound in retirement. Nor can politics take the place of personal financial responsibility and integrity.

But there is a lot the federal government can and should do to level the playing field for young people. One platform is outlined in a recent issue of The American Prospect -- see economist Robert Kuttner's piece "An Economic Compact for the Young."

Here's my take on the youth political agenda:

We need more aid for higher education. Our grandparents and then our parents benefited from huge expansions in federal student aid: The GI Bill in 1944 sent 8 million people to college. And in 1965, after the Higher Education Act was passed, the number of college grads doubled in 10 years.

Today, both Democratic presidential candidates have proposals to cut the big-business subsidies out of the student loan system, increase need-based grants and tax credits for education, and make sure aid is distributed more efficiently.

The Major Issues

I've become increasingly convinced that we need some measures targeting colleges, too, to compel transparency about tuition increases, and to distribute student aid in a way that addresses the problem of access. Senator Hillary Clinton (D-NY) has also proposed a "Youth Opportunity Agenda" program to strengthen vocational and craft education, as well as mentoring and support, to get young people into the types of non-bachelor's degree jobs that can provide a great living and can't be exported out of the country.

A workable universal health care system would help young workers along with everyone else. Both Clinton and Obama have plans, the merits of which have been debated. The Obama plan may provide more options to young people, who have lower health care costs, to buy cheaper coverage.

To address the job market, some Democrats have proposed strengthening the ability of workers to unionize. The traditional labor movement played an important role in creating America's middle class, and I believe in the right of human capital to exert collective bargaining power. But I think we need a more portable, public-private system of benefits, voluntary association, protection, and mutual aid to fit the way people work today -- something like what's championed by the Freelancers Union.

Finally, there is one major generational issue that the Republicans are just talking more about: fiscal responsibility. Resolving our record national debt and making the necessary cuts to bring Social Security and Medicare into balance will have a huge economic impact on the young and future generations. While Obama and Clinton's platforms talk about "protecting" Social Security benefits, Senator John McCain's (R-AZ) Web site speaks the truth: "Promises made to previous and current generations have placed the United States on an unsustainable budget pathway."

If you're a young person interested in getting involved in politics, check out these resources:

YouthBuild, focused on low-income youth, will hold a political conference on April 1 in DC and present a "Declaration of Interdependence."

May will see the Better Deal Conference, also in DC and for youth activists, on "Reclaiming Economic Security for a New Generation."

Rock the Vote, Mobilize.org, and Campus Progress are three more groups working on activating young people in this election.

And, finally -- don't forget to vote!

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242 Comments

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  • Gee - Tuesday, April 8, 2008, 7:06PM ET  Report Abuse

    • Overall: 1/5

    Hmmm... where to start? 1) We DO have "portable retirement" -- it's called "IRA" and "401-K" -- the money is in YOUR name, and you have to worry less about the politicians deciding how big a hand-out they are going to give you after all of their pork-barrel "ear marks" -- if you have the DISCIPLINE to save. 2) My 23-year-old daughter has "portable health insurance" -- an INDIVIDUAL policy with Blue Cross that she pays $95/month for. She has to pay the first $2,500 in bills -- the deductible, but then insurance pays 100% of the rest -- no co-pays no deductibles. If she sets aside another $100/month -- $25/week in savings, she will have the $2,500 deductible covered within a year -- and be earning interest on it from then on. 3) College costs: it's called setting PRIORITIES. Get your education while you are young -- BEFORE you have kids and the full-time career, and other issues that distract you. Be tight on your spending -- no car, no electronic gadgets, an "adequate" laptop at about $600 -- at Wal-Mart, Best Buy, etc., have a roommate or live in a dorm room or a cheap efficiency, have just a cell phone -- saves on all those long-distance bills -- IF you have the DISCIPLINE to use it at the right hours and on the weekends. Stick to a DISCIPLINED budget. 4) College funding: 20 hours/week can go a long way at $7 per hour -- over $600/month. 30 hours is $900 . That allows you to borrow much less, or get by on non-loan aid. Set your exemptions right, and all you have withheld is FICA taxes. IF your parents help, fine -- if they DON'T or CAN'T, then claim yourself as the dependent on your tax return -- establish yourself as financially independent and you will qualify for a lot more aid, loans etc. -- if you have the DISCIPLINE not to spend the loan check on a bunch of electronic gadgets or a trip to some beach. If your parents are so poor that they have to claim you to get earned income credit, then you SHOULD qualify for LOTS of aid that is already out there -- if you have the DISCIPLINE to file the FAFSA and other paper work needed on a timely basis. 5) OR you can sit around and whine about it -- and vote for someone like Clinton or Obama that PROMISE a whole lot of things that require MORE taxes that you will be paying for the REST of your LIFE.

  • Dude - Tuesday, April 8, 2008, 4:51AM ET  Report Abuse

    • Overall: 1/5

    Solutions: 1. Eliminate the Federal Reserve finance cartel and fractional reserve banking and return to the gold standard. 2. Demilitarize the U.S. Close all foreign bases and get the budget down to under 50 billion. 3. Tax wealth not work. 4. Enforce anti-trust laws and viciously regulate all corporate activity. 5. Change to publicly financed elections.

  • Kevin Bondelli - Monday, April 7, 2008, 12:18AM ET  Report Abuse

    • Overall: 5/5

    Thank you for writing this. The previous comments further illustrate the challenge for young Americans to be taken seriously, and it takes courage to address these issues in the face of generational criticism. Keep up the good work.

  • Yahoo! Finance User - Sunday, April 6, 2008, 9:04PM ET  Report Abuse

    • Overall: 1/5

    Yahoo rating system will make sure there will be no poor article.

  • Bruce - Friday, April 4, 2008, 7:07PM ET  Report Abuse

    • Overall: 1/5

    Unprofessional

  • Down with Hollywood - Thursday, April 3, 2008, 11:27AM ET  Report Abuse

    • Overall: 1/5

    So I guess all young Gen Debters are Democrats?? Oh poor is me. I'm young and broke. Hey welcome to the club. We were all young and broke one time. Your generation is no different than anyone else. Get over it

  • Yahoo! Finance User - Thursday, April 3, 2008, 5:08AM ET  Report Abuse

    • Overall: 1/5

    Don't worry readers, not all young people are this ridiculous . . . but at least she's cute and went to Yale!

  • Yahoo! Finance User - Tuesday, April 1, 2008, 8:47PM ET  Report Abuse

    • Overall: 1/5

    Not really about personal finance.

  • Casey - Tuesday, April 1, 2008, 7:53PM ET  Report Abuse

    • Overall: 1/5

    Socialists Rock! Oh yeah and John McCain is still breathing... hey I could do unbiased journalism too.... Wake up yahoo! This is a personal finance page (read: wealthier people who rather see people like this roasting on a spit before seeing their taxes go up to support those who dont know what responsibility is).. Get with the program.

  • David R - Tuesday, April 1, 2008, 7:03PM ET  Report Abuse

    • Overall: 1/5

    Wow-- this is a real left wing hit piece. And I am to consider this expert advice. I think the lady is clueless.

  • GeorgeK - Tuesday, April 1, 2008, 4:54PM ET  Report Abuse

    • Overall: 1/5

    I hope Yahoo! doesn't pay this author...

  • Yahoo! Finance User - Tuesday, April 1, 2008, 9:30AM ET  Report Abuse

    • Overall: 1/5

    I like the way that you tacked on something about a republican at the end to make the article seem unbiased.

  • Ski - Tuesday, April 1, 2008, 7:47AM ET  Report Abuse

    • Overall: 1/5

    the "youth vote"....the most over rated thing since paris hilton.

  • Yahoo! Finance User - Monday, March 31, 2008, 1:47PM ET  Report Abuse

    • Overall: 4/5

    Amazing, most of the commenters show how out of tune they really are. This isn't about how hard "they worked in their days", it's about the sort of society young Americans want for their future. A decent healtchcare system and portable retirement is about as basic as it gets. This has nothing to do with "communism". Many young Americans have seen firsthand what other developed countries manage to do in terms of quality of life and they want the same or better. Nothing wrong with that.

  • Yahoo! Finance User - Monday, March 31, 2008, 1:21PM ET  Report Abuse

    • Overall: 1/5

    I do not see anything wrong with the government helping people in need have the chance to attend college, but I believe it should be based upon MERIT. I was raised by my grandparents so, even though I am part of the generation that is discussed in this article, I do not understand the sense of entitlement that many in my generation feel. My family was lower-middle class, so I worked for the grades for scholarships. I wanted to attend graduate school, so I found an employer that would pay for my education based upon my performance on the job. There is more than one way to achieve a goal and I do not believe a "hand out, big government" solution is always the way. Actually, I think that very rarely helps anyone because people do not learn to work for what they want if it is just given to them. There is a sense of pride and accomplishment when you can stand on your own and say, "I did this and I worked hard for it". I am glad the government made it possible for me to attend an university by offering grants, but I am equally thankful I had to EARN them. Our government should give opportunities to those whom are willing to help themselves not for everyone to be equal. I was raised on welfare and now I have a PhD. If that doesn't prove anyone can do anything they put their mind to, I don't know what does.

  • hunter - Monday, March 31, 2008, 10:34AM ET  Report Abuse

    • Overall: 1/5

    no, no, no. you must stop drinking the Democratic/socialist koolaid and start laying responsibility at he feet of the younger generation! when i attended college i worked 30 hours a week and took a full workload of glasses while the spoiled kids joined frats and partied all night long. what really needs to happen is kids need to be required (in high school) to take several classes in personal finance to understand how to handle their finances and not just make a plan to move back in with mom and pop when things go to hell and they saddle up a mountain of credit card debt. i am sick and tired of the dems telling voters the government has let them down. are you kidding me?? i have never taken out an ARM and have always lived way below my means, avoiding the financial ruin so many Americans face today. blaming the government is a cop out. the irresponsible all want the responsible homeowner and taxpayer to bail them out! Obama and Clinton are selling a socialist plan they say people are entitled to, but i say you get what you work for, so the younger generation needs to get to work and act fiscally responsible, which our role model government is not inclined to do! wake up and smell the roses Anya!

  • Yahoo! Finance User - Monday, March 31, 2008, 1:10AM ET  Report Abuse

    • Overall: 1/5

    I'm reading this crap about 8 million people going to college in 1944 and I'm wondering if my college education let me down. I mean, I just went to a community college so maybe I'm not that smart. Was there not a war going on in 1944? So I look up the GI Bill and find that her facts are wrong! Here is what it says on the GI Bill site for anyone to look up. "By the time the original GI Bill ended in July 1956, 7.8 million World War II veterans had participated in an education or training program and 2.4 million veterans had home loans backed by VA. Today, the legacy of the original GI Bill lives on in the Montgomery GI Bill." She rounded the number up by a couple hundred thousand people and just happened to rewrite history there a bit wouldn't you say? I mean she made it sound like everyone was going to college thanks to the government. I'm afraid that we cannot afford to send 8 million students a year to college, Anya. But you know what, I dare say we are sending more people to college now than then. Stop pushing this communist crap on people. College was much cheaper back then. I dare say the government is giving minorities, women, ball players, and anyone that get a smart grant a free education anyway. So the argument of the government not doing enough for college students is insane. For most middle of the road Americans, they have to pay. Where is the relief for middle class people that have to pay the difference for everyone else getting a free ride? That's the problem no Communist likes to address. More people now are getting helped than ever before. She has no idea what she's talking about.

  • Yahoo! Finance User - Sunday, March 30, 2008, 11:31PM ET  Report Abuse

    • Overall: 1/5

    I don't even know where to start. For those that don't know, Anya got her start with a book she wrote about all of Generation Debt's problems. Great, so we've established that as a college student she could put a long report together saying things suck out there. Now, for those of you that haven't read the book, I saved you the trouble. As for this article, it is much worse because Anya has a degree in journalism, not economics and surely not finance, at least I hope not because it would only be a testament to how bad education has gotten. She states all the problems we have but never has a decent solution. She wants more money in the GI Bill and for colleges. Great, the GI Bill helps about 1% of those going to college and the government giving more to colleges will just result in more domes being built for sports. That's brilliant. Next idea, let's discuss social healthcare that we can't afford as a society and will never get. She writes about young voters as though inexperienced young people have a clue what is waiting for them outside of college. If they did, they would not go to college and wrack up countless thousands in debt. She and her like are the problem young people are faced with. At one point she says our grandparents were better off with manufacturing jobs and pensions, but then she turns and says that the children of tomorrow can't have pensions and good paying jobs because we have to abide by free trade laws. Anya obviously doesn't even know why she is saying that because she just made the argument against free trade. I do not wonder how Anya got the position writing for Yahoo. What I wonder is how she keeps it with crap like this!

  • Yahoo! Finance User - Sunday, March 30, 2008, 9:39PM ET  Report Abuse

    • Overall: 5/5

    Just because you disagree politically with the writer doesn't mean she is an idiot or a bad writer. . .if these outraged commenter's were half as smart as they think they are, they would be able to separate the two.

  • Al w - Sunday, March 30, 2008, 3:52PM ET  Report Abuse

    • Overall: 1/5

    What's wrong with hard work. Did Rev Wright have the answer?

  • Yahoo! Finance User - Sunday, March 30, 2008, 12:33PM ET  Report Abuse

    • Overall: 1/5

    Did she get PAID to write this ???

  • Yahoo! Finance User - Saturday, March 29, 2008, 10:39PM ET  Report Abuse

    • Overall: 1/5

    This should actually be a zero star article. Was this really written by Hillary Clinton or Barack Obama? Another big government liberal from the loser school of journalism. The democratic party of John Kennedy is no more. This is the party of big government socialist. To bad for you Anya, I am sure you would vote for Marx or Lenin if you could.

  • Dee - Saturday, March 29, 2008, 9:25PM ET  Report Abuse

    • Overall: 5/5

    Baaaaaaaa, stupid ole grumpy people! Baaaaaaa get a grip!

  • Jd - Saturday, March 29, 2008, 3:58PM ET  Report Abuse

    • Overall: 5/5

    Great article, I just cant get over all the hatred and anomocity towards differing groups of people that I read making comments. It feels like the commenters dont want anyone to achieve success or better themselves at all. What a waste. They should spend more time helping others and less time trying to cut people down. Maybe their great dissastisfaction with others is a reflection of the failed attempts in they made in life.

  • Yahoo! Finance User - Saturday, March 29, 2008, 1:31PM ET  Report Abuse

    • Overall: 1/5

    So you are saying that young people should look to the government for answers. This could be their theme song. Unbreakable Union United forever in friendship and labour, Our mighty republics will ever endure. The great Soviet Union will live through the ages. The dream of a people their fortress secure. CHORUS: Long live our Soviet Motherland, built by the people's mighty hand. Long live our People, united and free. Strong in our friendship tried by fire. Long may our crimson flag inspire, Shining in glory for all men to see. Through days dark and stormy where Great Lenin led us Our eyes saw the bright sun of freedom above and Stalin our Leader with faith in the People, Inspired us to build up the land that we love. CHORUS: Long live our Soviet Motherland, built by the people's mighty hand. Long live our People, united and free. Strong in our friendship tried by fire. Long may our crimson flag inspire, Shining in glory for all men to see. We fought for the future, destroyed the invader, and brought to our homeland the Laurels of Fame. Our glory will live in the memory of nations and all generations will honour her name. CHORUS: Long live our Soviet Motherland, built by the people's mighty hand. Long live our People, united and free. Strong in our friendship tried by fire. Long may our crimson flag inspire, Shining in glory for all men to see.

  • Yahoo! Finance User - Saturday, March 29, 2008, 12:56PM ET  Report Abuse

    • Overall: 1/5

    "YouthBuild, focused on low-income youth, will hold a political conference on April 1 in DC and present a "Declaration of Interdependence."" How fitting that this utterly irrelevant event is being held on April Fool's Day. I'm sure it will be a day to remember for the tens of people who show up for this momentous occasion.

  • Yahoo! Finance User - Saturday, March 29, 2008, 2:28AM ET  Report Abuse

    • Overall: 1/5

    Maybe she could recommend that kids get a job that pays well, instead of agitating for handouts which are unlikely (as well as immoral). Don't know why Yahoo pays her. Give the electron space to others.

  • Yahoo! Finance User - Friday, March 28, 2008, 9:48PM ET  Report Abuse

    • Overall: 1/5

    Welcome to the real world which is not found in the Yahoo columnist pages! If this columnist was a gazelle the lions and hyenas would have her for lunch and dinner and the smart gazelles would just move on and be done with her. You know survival of the fittest. Going to college has become the biggest scame perpetuated on the idiots of our society, right up there with home ownership and bottled water. You know who fall for scams....the weak gazelles. "What will the candidates do?"....You are killing me weak gazelle woman. You ought to be telling people "What can I do?" As a gazelle you can learn to listen better, have keener perception, and run faster than the other guys. That's how you survive in this world. Not waiting around and asking the gazelle who already started running..."What do we do?" I am not conservative or liberal but man wise up and realize that it's a dog eat dog world out there. If you get your way and socialize everything don't you think all of the corporations, businesses etc... are going to pick up and leave what was the USA. I am trying to bee nice but woman I can tell you don't want dirt underneath your fingernails in order to get ahead. Watch out for those lions and hyenas!

  • BTG - 1 - Friday, March 28, 2008, 7:31PM ET  Report Abuse

    • Overall: 3/5

    OK. I see some flaws here, and wonder what the concrete practical application is in terms of "expert" advice. However, I don't see her comments to be as irresponsible and socialistic as a great many posters apparently do, so I give it 3 stars.

  • Ed - Friday, March 28, 2008, 4:30PM ET  Report Abuse

    • Overall: 1/5

    Ask any young voter why they are voting a particular way and most are unable to explain why. It is sad that they are being used in this fashion. Most can only say "I am voting for change" and when asked what they desire to change, the answer is usually I am against [President] Bush. I try to reassue them that [President] Bush cannot be reelected but they seem to not understand this fact. Amazing.

Showing comments 6-35 of 242<< PreviousNext >>

More from Anya Kamenetz

Read the Generation Debt Book

According to economics professor Laurence J. Kotlikoff, Generation Debt offers "a truly gripping account of how young Americans are being ground down by low wages, high taxes, huge student loans, sky-high housing prices, not to mention the impending retirement of their baby boomer parents." Generation Debt will inspire you to take charge of your financial future.

Read more from Anya Kamenetz here and here.

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