Brooklynn Chandler Willy on Why Millennials Are Being Blamed for Inflation
Brooklynn Chandler Willy discusses why millennials could be blamed for inflation.
The rising cost of living puts investors on edge and raises fears of a recession. This week, the government reported that consumer prices in the US increased by 9.1% in June. Janet Yellen, the head of the Federal Reserve, said that inflation is too high.
The rising cost of living is attributed to various factors, such as the conflict in Ukraine and the high prices for energy and commodities. However, experts believe that one of the most significant factors is millennials.
Although millennials are responsible for rising prices, their choices are not causing it. Instead, it’s the size of their generation that’s responsible. There are around 92 million millennials in the US, most of whom are in the 27 to 42 age group.
According to Bill Smead, the chief investment officer of Smead Capital Management, the number of millennials exceeds that of Gen Xers. This means more people are willing to spend money on necessities like cars and houses. Smead was a baby boomer when the population of this age group peaked at 75% higher than the previous generation.
During the 1970s and 1980s, he experienced the Great Inflation. He attributed the price rise to various factors, such as the OPEC oil embargo and, most notably, the federal budget deficits. He also blamed the Great Society, a series of policies introduced by President Lyndon Johnson, for the high inflation.
During the 1970s, the baby boom generation entered the phase of “necessity spending.” This means that they were starting to establish households. Unfortunately, many people were spending the same time during this period, leading to an inflation binge.
Although there are similarities between millennials and baby boomers, the latter had waited five to seven years to get married, have kids, and start a family. More millennials also have college degrees, which gives investors hope for the future.
Economists have claimed that the price hikes would eventually be short-lived and that the supply chain would recover. However, experts disagree. They believe the current inflation rate of around 9% will eventually disappear. Instead, he thinks the country will experience long-term inflation of 5%.
This blog/website is only made available for educational purposes. It is designed to give visitors general information and a general understanding of select financial topics. It is not intended to provide specific financial or investment advice. Conduct your own due diligence or consult a licensed financial advisor/broker before making any and all financial/investment decisions.
ABOUT BROOKLYNN CHANDLER WILLY
Brooklynn Chandler Willy’s career in financial services developed following the sudden and untimely death of her father. In life, he had been a life insurance salesman who – ironically – had no life insurance himself. She saw how difficult it can be – emotionally and financially – to lose a loved one without being prepared; she decided to dedicate her career to helping others put better plans in place and be prepared so as not to be faced with a similar situation.
At Texas Financial Advisory, Brooklynn Chandler Willy and the entire team understand and appreciate how hard their clients work and the nest eggs that they’ve saved throughout their lives. The team will work with each client as a fiduciary and help take the uncertainty and stress out of retirement planning to create holistic plans that extend beyond the numbers. To learn more about if Texas Financial Advisory is right for you, please visit their website.
Alongside her job as the Host of the “Texas Financial Advisory Show,” Brooklynn Chandler Willy hosts the “Texas Financial Advisory Show,” airing weekends on WOAI 1200 AM and KTSA 550 AM. Through her show, Brooklynn shares the knowledge, insight, and expertise that she’s accumulated across her career. Listeners tune in to hear examples of how a retirement income plan can help reduce income taxes, provide a legacy for heirs, and assure a steady income through the rest of life.
About the Creator
Brooklynn Chandler Willy
Brooklynn Chandler Willy is a financial services professional specializing in Retirement Planning. Operating in San Antonio, Texas. She is the Founder and President of Texas Financial Advisory.
There are no comments for this story
Be the first to respond and start the conversation.