Generation Gap

This is from Floyd Norris blog on the N.Y. Times blog site. Please follow link to original.

I'm very surprised this has not had more publicity. Then again, most of our economic writers and bloggers have one or another axe to grind.

As you may know, I tend to favor Krugman. To me he just makes sense.


July 16, 2010, 2:27 pm
Generation Gap

The generation gap is larger than it ever was.

Or so says the University of Michigan consumer sentiment index, out today.

Here are some index levels (1966 sentiment equals 100) from the preliminary July figures, as compared to January, the recent peak in overall sentiment.

Over all: Down 7.9, to 66.5

People over 55 years old: Down 9.6, to 60.6

People 35-54: Down 6, to 69.1

People 18-34: Up 12.2, to 98.

It is normal for the youth to be more optimistic than the older folk, but this is the largest margin on record. The numbers go back to 1961, although for many years the survey was annual rather than monthly.

The younger group now reports better sentiment than at any time since late 2007, before the recession began. The older group sentiment is at the lowest level since March 2009, when the stock market was hitting bottom amid talk of a new depression.