Why Do Millennials Like Bernie Sanders?
I am about to shoot a teaching video for www.thevitalitynetwork.com on advice I would give the Millennial generation. I think that this generation is an important one. They have the opportunity to turn financial illiteracy around once and for all. The cycle has to stop. There is not much hope for my generation. However, for younger generations, there is hope. It starts with proactive steps to learn and get an education on how it all works. With that information, you can make better decisions and form more effective habits.
The interesting aspect of the millennial generation is that they are the best equipped to take this on. Survey after survey would show that they put priority on financial education. The surveys would show that the millennials out of all of the generations are the biggest savers. I told this to a friend and he commented that of course they save. They are all living at home with their parents. That comment like most is very misguided due to the misrepresentation of the millennials by the media. If I were back in my 20’s living with my parents and had an extra $1,000 a month believe me it would have been spent and not saved. It takes discipline to save and they are doing it.
There is however a troubling aspect of this generation in that they prefer socialism over capitalism. I thought a lot about this because it doesn’t support my thesis about this generation. Socialism doesn’t work. I would challenge anyone to show where this is working. You could make the argument that capitalism doesn’t work either. Although neither have been effective. I think you have to look much higher for what is not working. Cronyism and out of control politicians are the blame. They have ruined capitalism making socialism more desirable.
However, if you really think about it, the support for a socialist makes sense. First, they are drowning in student loan debt – a problem created by the politicians giving out debt like candy. If I were drowning in student loan debt and there was a candidate that was going to do something about it, I probably would prefer them as well.
Second, there is an appearance that capitalism has failed them. Employment out of college is not so hot. Most have to rent because they can’t participate in the America Dream of home ownership. The whole notion of capitalism hasn’t worked out for this generation.
Third, then there is the cost of healthcare – another problem created by the politicians. It is spiraling out of control.
Finally, just like that generation doesn’t know what a Dallas Cowboy super bowl looks like, they also have never experienced capitalism working. They have only watched socialism get bigger and bigger.
It should be no surprise that Bernie Sanders appeals to the millennials and they prefer that over capitalism. Unfortunately, that just strengthens the shift to socialism and the death of capitalism.
Bob Brooks is host of The Prudent Money Radio Show, Financial Advisor, and active money manager that consults and helps people plan.