Source: Fortune.com
Summary
The Peter G Peterson Foundation has issued a report warning that the rising US national debt will lead to a smaller job market and lower wages for Gen Z and Gen Alpha. The report, which was analyzed by EY’s Quantitative Economics and Statistics (QUEST) practice, found that the debt will reduce the number of jobs in the US by 1.2 million by 2035 and 2.7 million by 2055. The foundation urges younger people to make their voices heard to ensure policymakers take action to stabilize the debt.
Our Reading
The numbers tell one story. Citadel CEO Ken Griffin warns that the US government’s 6.4% deficit is irresponsible. JPMorgan Chase CEO Jamie Dimon sees a bond market crisis as the most likely outcome. The Peterson Foundation’s report suggests that Gen Z will face a smaller job market with lower wages. The EY analysis found that take-home pay shrinks over time if policymakers don’t slow the pace of debt accumulation. The service payments to manage the debt are accumulating at speed, with net interest on public debt for the fiscal year hitting $857 billion.
The announcement sounds like a familiar warning about the consequences of inaction.
