SCREWED?

Newsweek, the CBC and Macleans Magazine and others have been calling Generation Y, or the Millennials,  "Generation Screwed." It sounds even worse than "Baby Boomers"! Thank God there is no such generational designation for octogenarians, or at least the only one I hear is Generation Old Farts! 

 A few years ago some of us might have been embarrassed given that one meaning of screw is sexual promiscuity! But the word has many other meanings such as being cheated, fastened with a screw, under pressure, a prison guard, a worn-out horse,  mentally unbalanced etc.. Hence, it is not an agreeable appellation because of its many possible interpretations. To some it could even imply that the Millennials are a lazy bunch and it's their own damn fault they are being screwed! 

 I must point out that most of the public discussion is directed to those Millennials currently in our Universities and Colleges. But the problems facing many of our youth are similar in nature. Those in post secondary education are paying big bucks to prepare themselves for a job market that has radically changed in recreant years.  In one study, 35% of the students surveyed stated they experienced depression and another 9% said they considered  suicide! Could this explain the Calgary stabbing of five students by a college pal this past week?

Some of the recent major changes, along with their sweeping economic shifts to the job market, would include new technologies, job outsourcing, later retirement targets  and the use of temporary foreign workers. All of these changes have been studied with various conclusions. I realize the nature of business in a democracy is to grow and get rich by operating efficiently. I also know it is not good to compare "apples" and "oranges". But please allow me some generalizations.

 SEARS are axing 800 jobs, a large number of them management jobs in the Toronto head office. The jobs are being shipped to the Philippines and India. Remember that coal mine in British Columbia that brought in Chinese workers and paid them 15% less. And how about the current accusations levelled against McDonalds. There are unintended consequences to these practices that will undermine a company's relationship to its labor force, customers and the local and domestic communities. People in communities are not just workers - they are customers as well!

Then there are student loans! The CSLP (Canada Student Loan Program) provides interest free loans for full-time students, but with time limits. The same story with some provinces.The banks offer commercial loans that target students in some professional programs. Of course there are lines of credit with lower interest rates, students make use of credit cards and, of course, loving parental support. But all these great resources leave an average student with a debt of approximately $26,000. Hence, no new car, no marriage, home ownership is out of the question and no children till much later if at all! And what does that do to our traditional way of life? According to the Washington Post more than six in ten American workers fear their jobs are at risk. "It's an ugly repeat of that 70's show" someone said recently.

Of course there are some debt forgiveness programs, especially for medical and nursing students because of need! But on average an Honour's BA is four years of study, an MA one to three years,  and a PhD about five years...if you are lucky. Over twelve years of university tuition! No matter what anyone says we still need managers, doctors, lawyers, engineers, teachers etc and yes, plenty of skilled tradesmen, entrepreneurs and smart people with great ideas. But if things continue without realistic solutions then our youth hoping to enter the labour force are going to create problems -  socially, economically and politically in the years ahead.

Meanwhile, back at the bank - RBC reported in the third quarter last year a 23% profit increase of $2.3 Billion - (GLOBE AND MAIL, August 29, 2013). Canada's five banks together netted $29.25 Billion in 2013 - no wonder the Quebec students were banging their pots and pans in the streets last year.

With the rising costs of almost everything and a rapidly changing and violent world, many Millennials just might agree - they are being screwed. BUT WAIT! Could it be that all of us are being screwed as well?

HAPPY EASTER!

And that's Dick View of the World this Week.