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Are millennials irrational or just cautious?

February 25, 2016

hi

They do not drink, do not own cars and keep away from mortgages. By sitting on their cash and refusing to invest, millennials are challenging the foundation of economic principles.

The generation that prides itself for its independence, goes against what is believed to be rational economic behaviour. The theory says young age should be the time to borrow, while saving is reserved for the mid-life years with higher incomes. Yet, the current wage and job uncertainty are preventing millennials to borrow money. In addition, they have also seen their parents’ wealth evaporate into thin air of economic turmoil, so they learned the hard way not to trust the banks, stocks or the pension schemes.

Is the most educated generation ever really being irrational or just being too rational for their own age?

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From → Hic Salta

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