Jan. 17, 2016 Blumbers

Millennial Money

On Jan. 8, 2016 The Wall Street Journal’s Sara Germano wrote “Holiday Sales Rose, But Not All Are Cheery” about how poor the latest generation of Americans are. More than 60% of milennenials who are employed full time year-round make less than the U.S. median income of $46,480 according to the U.S. Census Bureau.” Young people are struggling just to get by, causing constant stress and anxiety. Without high paying jobs, they will not be buying cars or houses. They will be living with their parents and not having children themselves. They will be scrambling to pay their college loans and little else. What is the solution?

Last year Dan Price CEO of Gravity Payments had an idea. Pay people a living wage. He raised the annual base salary of his employees to $70,000. He partly based his decision on a 2010 Princeton study by Nobel Prize economist Daniel Kahneman, who determined that less than that $70,000 forces poor people to make compromises that are harmful. Dan Price also based his decision on his own conservative religious upbringing about helping other people. He put his money where his people were.

Copyright 2016 DJ Cline All rights reserved.