Children of the 1980s and 1990s in the UK and US were caught out as the financial crisis scuppered the economy just as many started work: generational progress ground to a halt as millennials’ pay took a step down from the levels their predecessors enjoyed at the same age. But that was 15 years ago – some of those “kids” are hitting their 30s and 40s, with children and wrinkles emerging. How are they faring today?
US millennials have staged a recovery – the incomes of those in their early 30s today are 21% higher than those of their predecessors at the same age in 2007. Sadly, new Resolution Foundation research finds the same can’t be said for their British peers, who still have lower incomes today than 30-somethings in pre-financial crisis Britain. The typical weekly pay of graduates aged 30 to 34 fell by a staggering 16% between 2007 and 2023.
In the US the expansion of the universities took place a generation before it did in the UK.
So the effect of the boom in supply of graduates took place a generation before it did in the UK. The Resolution Foundation’s report is comparing the US post the boom in supply to the UK during the boom in supply. That is, the UK numbers include the effect of having too many univiersities as it happens, the US the stable landscape of already having had too many universities.
It is, in short, completely shite analysis because it is not certeris paribus. But then that’s the Resolution Fouondation for you.
The answer, as ever, is simply to close any university which has ever employed R. Murphy. And sow the land with salt etc, obvs.