Scott Galloway Describes the Tough Future Facing Gen Z

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Scott Galloway Describes the Tough Future Facing Gen Z​

Rising costs of living and education have presented unique challenges for Gen Z. NYU Professor of Marketing Scott Galloway describes the inequities in opportunity and education young people face, while offering possible solutions.

 

[Menthol]

The world used to be between developed countries and backwater countries.

But now, the backwater countries are catching up.

The competition is getting harder and harder.

If you don't have something unique, or an advantage, you need to work harder with less money to earn.

It's a global problem, not just people in the developed countries.

 

[Hamartia Antidote]

Scott Galloway Describes the Tough Future Facing Gen Z​

Rising costs of living and education have presented unique challenges for Gen Z. NYU Professor of Marketing Scott Galloway describes the inequities in opportunity and education young people face, while offering possible solutions.

@GoMig-21 have a comment on this video? Your wife dreaming about the "good ole days" of living in Brighton in the 70's and 80's (like me).

Obviously college education costs and high rents are hitting young people hard these days.

But beyond that...I think a lot of people who grew up in the 1970's and 1980's know what real struggling is about...and I'm not seeing much evidence of that now.

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Also the "well off" of today are not the "well off" of previous generations.
Before it was the occasional $250,000+ executive with the stay-at-home soccer mom buying a $1+ million house.
Now its the absolute flood of "power couples" with their $250,000+ dual incomes in insane bidding wars for $1+ million houses.

BTW this dramatic rise of dual-income "power couples" being elevated to upper income household levels does not necessarily mean the US is going downhill because the middle class is "getting smaller".

 

[GoMig-21]

@GoMig-21 have a comment on this video? Your wife dreaming about the "good ole days" of living in Brighton in the 70's and 80's (like me).

Obviously college education costs and high rents are hitting young people hard these days.

Yeah it's crazy. I don't know how my new neighbors are doing it. Young couple with a beautiful little 2-year-old girl and they're in their early 30's so they're probably early Gen-Zs I would say, right? But they bought the house about 1-1/2 years ago for $675K (it's a small, 3-bedroom cape with a small kitchen addition off the back, small deck and a tiny little yard and they share a 3-lane driveway with us (we get 1 lane adjacent to our house and they get the other two. No garage and the neighborhood is semi-commercial, semi-residentially zoned. Their mortgage is around $6,300/month which is unfathomably insane I'm sure you would agree. They rent one of the bedrooms to a black chick (wicked unsociable) and he works for some adhesive production company out of Gloucester and my wife & I just can't figure out how the hell they do it. Imagine that mortgage, property taxes, 2 cars, electric, gas, water/sewer, insurance and food he's probably around $10K a month in bills. It's outrageous but that's what's going on. And the people before them that sold the house to them put it on the market and these people scooped it up in less than a month.

God bless their hearts I hope they do ok because at that rate for cost of living, not sure its sustainable even with a BA & MA combined and they have a long way to go.

Chick directly across the street is the daughter of the owner of a huge excavation/construction co. and she bought the house about 2 or 3 years after we did (we bought ours 1 month after 9/11) and I'll never forget, the guy who owned the house before her was telling me he old man at the closing opened his checkbook and wrote a check for $350K for the whole house at the time out of her trust fund. She works for the town and has some dude who's been living with her for the past 10 years and they seem to be doing just fine.

The house to our left belongs to a fence contractor who rents it out to probably the worst couple you could ever imagine. Just really unfriendly people who think their shit don't stink and the house is a full cape also with a side-attached in-law apartment that a single dude rents out. So the neighborhood dynamics are pretty interesting to say the least. We all work pretty hard to make ends meet except for the trust fund chick across the street but even she and her boyfriend have fulltime jobs.

 

[SaadH]

The world used to be between developed countries and backwater countries.

But now, the backwater countries are catching up.

The competition is getting harder and harder.

If you don't have something unique, or an advantage, you need to work harder with less money to earn.

It's a global problem, not just people in the developed countries.

No, the oligarchy is making out better than ever in the developed world. For regular folks here, incomes are stagnant, social programs and entitlements are ever shrinking. On the other hand, the rich keep growing their wealth exponentially each year through socialism for the rich.

 

[Hamartia Antidote]

Their mortgage is around $6,300/month which is unfathomably insane I'm sure you would agree.

WTF? $6,300/month (~$75K a year * 30 years = $2.2Million)? Are these people nuts? Sounds like zero down payment with a super crazy high interest rate. This had better be a really nice cape.


Oh man my head hurts just thinking about that...$2.2M..gah.

I'm sure you remember the max conventional mortgage was $417,000 20 years ago. That was ~$2,800/mo for 30 yr at 5.5% for me (~$34K yr * 30 years = $1Million). Want more than that and you had to get a special jumbo. My wife was aghast at the $1M debt number as we also wiped ourselves out with a huge down payment leaving us basically broke when we first walked into our empty new house and sat on the shiny wooden floors with zero furniture, bare windows, white walls, and just a stove, microwave, and dishwasher. We did not feel successful...but it was a modern Colonial...not an old Cape.

The max is now $766,000. Yeesh!
30 yr Mortgage at 6.9% on $766,000 is ~$5000/month ($60K year * 30 years = $1.8M!! geez!!).

BTW i paid my mortgage off very early (my wife did a happy dance) so just property taxes (which is crazy) and insurance for me.

 

[GoMig-21]

WTF? $6,300/month (~$75K a year * 30 years = $2.2Million)? Are these people nuts? Sounds like zero down payment with a super crazy high interest rate. This had better be a really nice cape.

View attachment 49696
Oh man my head hurts just thinking about that...$2.2M..gah.

I'm sure you remember the max conventional mortgage was $417,000 20 years ago. That was ~$2,800/mo for 30 yr at 5.5% for me (~$34K yr * 30 years = $1Million). Want more than that and you had to get a special jumbo. My wife was aghast at the $1M debt number as we also wiped ourselves out with a huge down payment leaving us basically broke when we first walked into our empty new house and sat on the shiny wooden floors with zero furniture, bare windows, white walls, and just a stove, microwave, and dishwasher. We did not feel successful...but it was a modern Colonial...not an old Cape.

The max is now $766,000. Yeesh!
30 yr Mortgage at 6.9% on $766,000 is ~$5000/month ($60K year * 30 years = $1.8M!! geez!!).

BTW i paid my mortgage off very early (my wife did a happy dance) so just property taxes (which is crazy) and insurance for me.

Yeah it's craaaazy, bro. Not sure if it's a 30-year mortgage they have, could be and they decided to take the initial hit, and then if & when things cool down and interest rates subside, they can always refinance with a lower rate. Or it's a 20-year mortgage and they're planning on paying it off quickly like you did. If you can do that, of course that works out better since you paying off only the interest for the first 10 years or so, then it starts whittling off the principle and that interest doesn't get a chance to accrue for longer years. If you go the full 20 years yeah man, that's still $1.4 million. But people don't like to look at it from that perspective because that total number is absurdly scary. But the banks don't care. They're thinking hey, if we're going to give you several hundred thousand dollars and allowing you to pay it back in over 3 decades, we're gonna make it worth not only our time, but our kids' and our grandkids'.

 

[Hamartia Antidote]

Yeah it's craaaazy, bro. Not sure if it's a 30-year mortgage they have, could be and they decided to take the initial hit, and then if & when things cool down and interest rates subside, they can always refinance with a lower rate. Or it's a 20-year mortgage and they're planning on paying it off quickly like you did. If you can do that, of course that works out better since you paying off only the interest for the first 10 years or so, then it starts whittling off the principle and that interest doesn't get a chance to accrue for longer years. If you go the full 20 years yeah man, that's still $1.4 million. But people don't like to look at it from that perspective because that total number is absurdly scary. But the banks don't care. They're thinking hey, if we're going to give you several hundred thousand dollars and allowing you to pay it back in over 3 decades, we're gonna make it worth not only our time, but our kids' and our grandkids'.

Hmm...well I think it is safer going for a 30 but paying the same amount monthly as if it was a 15. Yes the interest is higher but you have a fallback plan. You can always overpay the principal as mush as you want..but you certainly can't underpay it.