What if Millennials’ aversion to car-buying isn’t a temporary side effect of the recession, but part of a permanent generational shift in tastes and spending habits? It’s a question that applies not only to cars, but to several other traditional categories of big spending—most notably, housing. And its answer has large implications for the future shape of the economy—and for the speed of recovery.
The pair discuss the rise of the car-sharing service Zipcar and the increase in renting and living with parents among the under-35 set.
Zipcar is an interesting phenomenon because the technology masks what it really is, an example of the Third-World-ization of America. Since we no longer have close-knit, large extended families, we share cars with strangers.
Thompson and Weissman attempt to put a positive spin on the situation, expecting that the end of the recession (whenever that may be) will open up these big ticket markets.
Maybe so, but I hope not. I hate to sound like a critical theorist, but our flavor of capitalism is hooked on growth, usury and gouging. Logic told us that it was insupportable but the cash was so cheap and easy it was hard to resist.
I hope the transition will be relatively painless. Whether it is or not, the age of cheap credit, expensive housing and disposable goods will have to come to a close eventually. Modern America requires its citizens to have $100,000 in college debt to get a job that pays well enough to buy into the housing and automotive market. Meanwhile, the job market minimizes salaries through outsourcing and centralization. How long could it go on?
Zipcar is an interesting phenomenon because the technology masks what it really is, an example of the Third-World-ization of America. Since we no longer have close-knit, large extended families, we share cars with strangers.
Thompson and Weissman attempt to put a positive spin on the situation, expecting that the end of the recession (whenever that may be) will open up these big ticket markets.
Maybe so, but I hope not. I hate to sound like a critical theorist, but our flavor of capitalism is hooked on growth, usury and gouging. Logic told us that it was insupportable but the cash was so cheap and easy it was hard to resist.
I hope the transition will be relatively painless. Whether it is or not, the age of cheap credit, expensive housing and disposable goods will have to come to a close eventually. Modern America requires its citizens to have $100,000 in college debt to get a job that pays well enough to buy into the housing and automotive market. Meanwhile, the job market minimizes salaries through outsourcing and centralization. How long could it go on?
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