The Pew Research Center recently published an article exploring the increasing gap in economic well-being between the young (those households headed by someone under age 35) and the old (those households headed by someone over age 65) during the last twenty-five years. The data shows the following shifts:
- Median net worth grew by 42% for the older cohort while falling by 68% for the younger cohort
- Median adjusted household income grew by 109% for the older cohort while rising by only 27% for the younger cohort
- Share of households in poverty decreased significantly (from 33% to 11%) for the older cohort while rising significantly (from 12% to 22%) among the younger cohort
So What?
While it may be tempting to assume the great recession is primarily to blame for the widening gap, the data simply does not support that hypothesis. The last 25% of the time evaluated (2005-2009) was a tough time for all age groups. During those years, median net worth decreased by 6% for the older cohort and by 55% for the younger cohort. In other words, while it is true that the recession had a greater impact on the younger cohort it tells only a part of the story of why the changes between the two groups over the last quarter of a century are so pronounced.
- Beyond the unequal manner in which the recession impacted wealth, what factors over the last twenty-five years do you believe have contributed the increased gap in economic well-being between the young cohort and the older cohort? Do you believe that the items you listed will contribute to further widening in this gap over the next decade, will have little or no impact, or will serve to shrink the gap?
- What are the implications of this widening gap for your congregation, its budget, and ministries?