Generation Debt: A review « Beating Debt News Archives

Generation Debt: A review June 2, 2009

Posted by BDO in Reviews.
Tags: beating, book, college, consumer, Debt, economy, generation, government, high, review, school
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By Anya Kamenetz

Generation Debt is a well researched description of the current state of the economy from the perspective of a generation that is just entering the work force. Though the book is very partisan leaning, there are nuggets of actionable truth that we can all agree on for all generations.

The state of the economy:

This perfectionism and pressure came with a steady diet of luxuries unheard of in previous times…Now we are smacking into the awareness that not only can’t we afford all the stuff we were raised with, we may never be the stars we were told we were, or achieve what our parents had. It would be hard for any American generation to accept… – Anya Kamenetz (pg 122)

We can all agree that the consumption of debt by consumers, businesses, and governments have altered the opportunities available for future generations. Our record spending has committed us to paying back massive sums of money that will be inherited by our future generations or stifle the current growth of this generation. Either way, the effects of this massive spending are just barely being experienced by “Generation Debt”.

The state of government affairs:

…the realities of poverty and disadvantaged in America today are very different from what they were when New Deal programs were first designed…Extended deficit spending can actually stunt economic growth, leaving everyone worse off. The budget needs to reflect a more fair division of national resources between the young and the old, the poor and the well-off, the past and the future. – Anya Kamenetz (pg 185)

Given our current state of the economy, we must all come together with a list of those things we are willing to give up as a “right of being an American”, so that the future prosperity of America can be sustained. Our current spending by all is unsustainable. We need to come to the realities of the situation and all make the hard choices of sacrifice until we get our debts repaid.

High School and College aged advocacy:

Its lobbying clout is dwarfed by that of the big student loan companies – it spent just $20,000 on lobbying in 2000, compared with $1.5 million spent by Sallie Mae. – Anya Kamenetz (pg 217)

Students are being priced out of college, or they incur massive debt in the name of a good education. However, for all the studies and payback, good jobs with that education are not being realized. What is the answer to rising college costs? Price caps? More grants? Those who are students, how are you staying away from so much debt? Share your thoughts.

Generation Debt was a great book to understand the many aspects to a very controversial topic about debt, benefits, needs, the American dream, and the realities that exist between all those ideas. I would recommend this book to help get a good grasp of the issues for further study.

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