For Americans under the age of 40, the 21st century has resembled one long recession.
I realize that may sound like an exaggeration, given that the economy has now been growing for almost a decade. But the truth is that younger Americans have not benefited much.
Look at incomes, for starters. People between the ages of 25 and 34 were earning slightly less in 2017 than people in that same age group had been in 2000.
The wealth trends look even worse. Since the century’s start, median net worth has plummeted for every age group under 55.
Why is this happening? The main reason is a lack of economic dynamism. Not as many new companies have been forming since 2000 – for reasons that experts don’t totally understand – and existing companies have been expanding at a slower rate. Rather than starting new projects, companies are sitting on big piles of cash or distributing it to their shareholders.