Edward Conard

Top Ten New York Times Bestselling Author

  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “Unintended Consequences is far smarter and more thought-provoking than most economics written for the general public” - Greg Mankiw, Harvard University, Former Chairman of the Council of Economic Advisors
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
Upside of Inequality Oxford Unintended Consequences

AI Summary. Wealth data for young people comes from the Federal Reserve's quarterly Distributional Financial Accounts, which project forward results from the Survey of Consumer Finances conducted every three years. When newer survey results were released, young people turned out to hold considerably more wealth than the projections based on the prior survey had indicated.

Jeremy Horpedahl Economist Writing Every Day
Date Posted:

Based on new Federal Reserve data, 2023 wealth per capita for 30-year-old Millennials is outpacing their Gen X counterparts when they were 30 years old. @jmhorp

Do young people hold more wealth than earlier projections showed?

Core argument: The Federal Reserve's 2022 Survey of Consumer Finances showed that young people held more wealth than estimates derived from projecting 2019 survey data forward had indicated.

The two dollar figures I highlighted are at the median age of 30 for Millennials & Gen Z and Generation X age cohorts (unfortunately we don’t have data for Boomers at that age). The data I have always used in this chart comes from the Fed’s DFA which is updated quarterly. But that data is based on another Fed survey called the Survey of Consumer Finances (SCF), which is a large survey done every 3 years. The DFA data just projects the SCF data forward based on some assumptions. It turns out that when the 2022 survey data was released, young people had a lot more wealth than we thought based on just projecting the 2019 data forward.

Takeaways by Macro Roundup® AI

  1. The Federal Reserve's 2022 Survey of Consumer Finances showed that young people held more wealth than estimates derived from projecting 2019 survey data forward had indicated.
  2. The Fed's Distributional Financial Accounts, updated quarterly, projects Survey of Consumer Finances data forward using assumptions, with the underlying survey conducted every three years.
  3. Wealth comparisons between the Millennial and Gen Z cohort and Generation X are drawn at the median age of 30, with no comparable data available for Boomers at that age.

Related Articles:

  • With Housing, Millennials Have Much to Complain About — The Census Bureau's customary homeownership rate is measured by household, showing 52.7% of 25-to-34-year-old household heads own homes, but only 32.6% of all Americans in that age group do — down 20 percentage points from the late 1970s and nearly 10 points since the mid-2000s. Young-adult homeownership has seen a modest resurgence since 2016.
  • Young Adults in the U.S. Are Reaching Key Life Milestones Later Than in the Past — Pew Research Center analysis of Census Bureau data finds 21-year-olds in the US are less likely than their counterparts four decades earlier to have a full-time job, be financially independent, live on their own, be married, or have a child. Among 21-year-olds, 39% worked full time versus 64% four decades earlier, and a quarter were financially independent versus 42%.
  • Nearly Half of All Young Adults Live With Mom and Dad — and They Like It — About 45% of Americans ages 18 to 29, roughly 23m people, live with family, a share comparable to the 1940s. A Harris Poll survey of 4,106 US adults found nearly 90% say people shouldn't be judged for moving back home, viewing it as a pragmatic way to get ahead.
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