One reason is that it is intimidating to many of us. That is we do not know how to approach it or what even to say. The first thing to do is to arm yourself with some information. The bureau of Labor Statistics has median wages based on occupations and locations. After that one may try to improve our "skills" at negotiating. 49% of respondents from that Mint.com survey I mentioned earlier were either; lacking in confidence, lacking in negotiating skills or felt it was unpleasant. Our friends over at Flipyourglass.com have a few articles on how to change your pessimistic viewpoint to a more optimistic one. So the bottom line is to (1) Know your value (2) become more comfortable negotiating in general and (3) Become more optimistic
The question is less about "should you" and more about "how do you". Currently,only 36% of men and 26% of women negotiate their first salary. This may explain some of the reason that men make a little more over time, however, why is it that many do not negotiate?
How Voter ID became the latest "Fake News"
In the end, the real story is not Fake News...no not even close. The real story is that too many of our citizens stay home instead of voting. Hillary Clinton, Donald Trump, Barack Obama.....it does not matter. How many Americans in each of those elections did not exercise their right to vote. So, in the end, is it requiring an ID that encourages voters to stay home? Or is it terrible, lousy candidates that do not inspire voters to go to the polls.
All in all, it is not about protestors or ideaology. It is ultimately about jobs. It is always about jobs. Jobs will be created to build the Keystone XL and jobs will be created by the profits generated by the project. It is obvious that the Trump administration will be much more pro gowth and will not be focusing on so called Green Energy the way the Obama Admionistration did.
In the end what we want is as many jobs available as possible. If entry level workers are not able to find jobs, they will become a drain on society later. Look at Greece, where the youth unemployment rate is over 50%! Or other cities/states that have high unemployment among the young adult population like Detroit/Michigan. We also lament over the fact that many recent college graduates are unable to afford to afford an apartment in the cities they live in or even have a hard time finding work. This is due, in no small part, to the fact that they have little to no experience before and/or during their university years.
We unfortunately love immediate gratification in this country. As a negative, when the reverse happens....we do not notice. That is, when we implement a plan if we do not see negatives right away, we consider it to be a positive plan. The effect of raising wages to $15 an hour will be that while some have a better paying job; in 2-3 years many will be out of work all together. Think we pay a lot for Welfare benefits now? Just wait and see what happens.
You have obviously figured out the subject to which I am referring. It is that age old discussion about...that's right you guessed it.......MONEY. What? I thought we were talking about........? Believe it or not more parents are comfortable talking about the birds and the bees with their children then are comfortable speaking to them about managing their money and what a big part of their lives it is and will become.
I am currently writing a book on this topic that I hope to have out in the fall of 2015. But until then, maybe I can give you some food for thought as to why giving your children at least a basic education on how to handle and deal with money is important.
Financially apathetic Millennials may be the U.S's biggest liability.
Seriously, it may be the biggest issue for the generation of Americans under 40 years old. Apathy. Not really caring about much. Statistics are already showing that the millennial generation does not look to live life the same way as their parents or grandparents. Gone are the dreams to own a home. Too many of them either were burned in the housing bubble of 2008 or witnessed friends and family get burned.
So what does this mean? How does it translate to the world of Economics and Personal Finance? We have heard time and again that Millennials, (those born from 1982-2002), don't care to save that much, especially for retirement. They prefer to buy tech items like ipods, ipads and google glass. What we have not heard a lot about is how NOT spending money, especially on certain big ticket items, could hurt the economy. To further explore this topic lets take a look at some recent articles on the issue.
Stephen Gandel writes in a Fortune.com article, "not buying a house, not even being able to afford one, might be the best thing that ever happened to Millennials, financially speaking" Well this is an interesting argument and Stephen makes some good arguments on how renting versus buying is good for those in the generation of whom we speak. Is renting a better option for Millennials? It may be, but I can tell you this: it sucks for the rest of us! It sucks for the economy and quite frankly for all of the Solialist, leftist, markist redistribution folks; it is contributing to wealth inequality. That's right people! The very group whom are the biggest participants of the 99% movement are screwing themselves.
Ok, you say. Why do I care? How does this effect me? Just let the little buggers go out and screw themselves and blow all their money. Well....they are not blowing it in the standard or usual way to help our economy. By not buying cars, houses and other big ticket items their parents did at this age, they are not pumping money into the economy the way Demand Side economists would like. When 30% of 19 year olds do not have a license it can keep them from buying a car. A recent survey from American Student Assistance, (ASA), tells us that 63% of respondants say that student loan debt is keeping them from buying a car and 47% said it was keeping them from starting a small business. That small business thing really bothers Supply Side economists like myself. Because, you know, small business's create jobs! Good paying jobs!
Allow me to sum things up:
1) Less people buying cars means less jobs at OEM's (original equipment manufacturers), like GM, FORD and Chrysler, as well as car dealerships, mechanics, aftermarket stores, etc. The automotive industry, including dealerships, accounts for approximately3.5 percent of U.S. gross domestic product. In addition the auto parts industry accounts for 2.3 percent of the nations GDP.
2) Less people are buying houses and that means less jobs for real estate brokers, construction workers and little guys working at Home Depot. Private Residential Investment accounts for 5% of GDP according to the Bureau of Economic Analysis.
3) The economic impact of reduced purchasing by millennials breaks down like this:
But doesn't Astutefinances.com think that the rich and small business owners create jobs? So why are you caring about Demand Side economics? Why are you guys so interested in consumption all of the sudden? We do think small
business owners and the rich create jobs, and that is why we also see something else very interesting happening here. The transfer of wealth from those in the Millennial generation to those in generation X and the Baby Boomers. That is,
with Millennials choosing to rent more in the housing market as well as to find alternative means of transportation, they are leaving money on the table. No longer are they building equity in a home as previous generations did. Because they have massive student loan debt, (about 30,000 per person average), they are forced to pay on that instead. Investors are picking up real estate at depressed prices and renting it out to these individuals in the 18-35 year old range. This, as well as the creation of companies like Zipcar and Uber, means that less people in the 18-35 age range are building wealth while a few in that age range and many in the 36-65 age range are building wealth. It is, however, not a big 99% vs. 1% conspiracy. It is simple economics. And when it comes time for these individuals to support the economy by themselves in 10-15 years......they will not have the requisite assets to do so.