In my long tradition of providing edgy material nobody asked for, I liked this article by Bryan Goldberg. Not sure I agree with all of the conclusions, but there is some serious fodder in the premises.
(You can read the whole thing, unedited, over here: http://pandodaily.com/2013/01/09/young-people-are-screwed-heres-how-to-survive/)
Hey
kids, you’ve all read “The Hunger Games,” right? Almost all young
people have read the best-selling books or seen the Hollywood movie
about Katniss Everdeen, a smart and ambitious young lady whose life
prospects are diminished by historical events that predate her. What
little hope she has is seemingly reduced to nil when a bunch of old
people drop her into an arena and force her to fight with her fellow
children in a
battle royale to the death.
But that’s just fiction, right? Your loving parents and grandparents
would never screw up their world and then throw you kids under the
bus…or would they?
Actually, they already have.
Last week, the economics blog Calculated Risk
ran a chart
that tells a pretty compelling story. To an economist, this chart means
that the magnitude and duration of the 2007 recession’s impact on
unemployment outpaces that of any prior post-war recession. To young
people, it simply means this…
You kids are screwed.
In fact, teenagers today probably aren’t old enough to remember the
“Dot Bomb” recession of twelve years ago. But even at its peak, that
really bad recession did not reach a level of unemployment that matched
the one we are
still currently experiencing. With the Federal Reserve
losing its appetite for quantitative easing,
the last bullet in their holster, and both political parties deciding
to half-@$$ the fiscal policy debate, it’s safe to say that…
You kids are really screwed.
As mentioned in one of my recent articles, unemployment for young people is about
double the national average. Student debt is now the
single largest contributor
to the nation’s credit delinquencies. And it’s one of the few debts
that you can never expunge through bankruptcy. Stated differently…
You kids are so unbelievably screwed.
Finally, young people need to understand how much their grandparents’
generation has ruined things for them. The average American retires
with
less than $70,000
in savings, but an elderly man and woman receive about $275,000 in
medical care during that time — and you kids are paying for it by
inheriting trillions upon trillions in Medicare bills that granny and
grandpa never intended to pay and will be too dead to worry about soon.
And you California kids can thank them for passing Proposition 13 and
Proposition 30, which relieved them of having to pay taxes in favor of
you having to pay even more taxes. In other words…
You kids are beyond screwed.
But there’s some good news in all of this. Some of us have already
been through this “Hunger Games” melee, and we can serve as your
Haymitch Abernathy — you know, the drunk, ranting mentor who teaches
Katniss how to survive the great battle that awaits her.
So here are a few pieces of advice for how to navigate this terrifying world:
Lesson No. 1: In 2007, the first thing to go was the BS. So you better learn how to
make something.
There’s a reason why unemployment is still very high, even though
corporations are making record profits. It’s because after they were
forced to cut about 10 percent of their workforces, many of them
realized that, well, they never needed that many people to begin with.
Companies cut out the BS. And, unfortunately, many of the
cerebral jobs that were going to ambitious young people were right in
the thick of it. This included young lawyers, who pretty much can’t get
jobs right now. This included young people in marketing and finance, two
departments that do not bring in revenue or keep the factories running.
But guess what
isn’t BS… making things. There are
millions of unfilled jobs in America, and most of them are careers where
you actually have to make and build stuff. If you grew up in an
affluent environment, then you see your software engineer friends
getting jobs easily. But it’s not just them. There are countless labor
jobs — everything from HVAC to plumbing — that still pay big dollars.
But rich kids don’t even know what those jobs entail.
My advice to young people is to figure out how to
make something. That means either working with your hands, or learning how to type code with them.
Which brings me to the next lesson…
Lesson No. 2: No, education is not the answer.
If you can get into an ultra-top-tier college, then go ahead and do
it. An Ivy League degree is worth getting, at least for undergrad. The
value of a law or business degree is becoming more and more questionable
each year.
But for the rest of you, it may be worth skipping college altogether.
The world doesn’t need any more girls with Spanish degrees from
California State, Long Beach. Sorry, but it just doesn’t. We need you
gals to learn how to build software in equal number with your male
peers. They are no smarter than you, and they are definitely way less
organized and far less attentive to detail. So go show them what you are
made of.
But won’t a college degree pay for itself? It probably won’t.
According to UC Berkeley’s website, a four year education will cost you
$210,000 in tuition and living
expenses, and a private education could run you way more. A part-time
job at Starbucks will eat into very little of that sum, and you will be
forgoing a
real job during that same time. And — if I can convey just one point in this whole article, let it be this…saving money takes
forever. Even if you do get that coveted six-figure job, you will find that it takes
forever to save $210,000. Decades even.
Buy a few
O’Reilly books
— it will run you about 60 bucks. Go find a few software engineer
friends and ask them to help you. Nerds are friendly and altruistic. And
software code is no more boring and no more cryptic than learning how
to conjugate your Spanish gerunds. Who knows, you may even have what it
takes to start a company, but even if you don’t, you can get some
valuable equity along the way.
Lesson No. 3: Your parents and grandparents don’t understand your world. You should probably ignore them.
Your parents and grandparents want what is best for you. But they do
not understand your world in the slightest. You should probably ignore
them.
They grew up in a world so unbelievably different from your own, that
they couldn’t possibly understand what things are like for you. They
don’t know what it is like to fight hard for an unpaid internship. They
don’t know what it’s like to watch entire career paths suddenly
disappear or become far less desirable: like Journalism, Medicine, and
Law. In their day, getting a job in Medicine or Law was a ticket to
prosperity. And newspapers actually hired people.
Parents and grandparents don’t understand the extent to which careers
need to evolve in the modern day. No longer can you get a job at some
company and expect to stay there for three decades. What you do for a
living may not even
exist in ten years.
Every young person is an entrepreneur now, in one way or another —
they must forge their own unique career path, and they need to think
five or 10 years ahead. There is no rulebook anymore for how to build a
career. Certainly not the one your parents read in 1981.
In summary, the “conventional path” has become so narrow, that it
hardly even exists. You can’t just go to grad school and “become”
anything: a lawyer, a banker, a doctor, a journalist, a manager. Some of
these jobs are on hiring freezes, and some of them are so fraught with
frustration that they are best avoided. I don’t know a single doctor who
thinks that Medicine is the best career path for their kids. And the
same logic is applying to more and more professions. The well has been
poisoned.
Lesson No. 4: Don’t worry about your network. Worry about your friends.
If you have successful friends, you will be successful. It’s pretty
much that simple. If you hang out with a bunch of losers, you too will
adopt their loser ways and not achieve anything. Regardless of whether
or not you go out and network, please make sure that your friends are
ambitious and hard working people who you admire.
For some, this means that they will have to move on from their high
school buddies. For others, it means that they will need to have friends
who are older than they are. Some people will have to learn new skills
in order to penetrate the friend groups that they would like to join.
But if you hang out with quality people, you won’t need to worry
about networking. Your friends will be your network. The only reason you
are reading this article is because Sarah Lacy has a lot of friends who
are very high quality, and they not only supported her PandoDaily
ambition, but also put money into it. And even though she is nobody, she
does have quality friends.
It works. I’ve seen it work innumerable times. Your friends bring you
up or pull you down. There’s no in-between. Make sure they are pulling
you up.