Strapped

Strapped: Why America’s 20- and 30-Somethings Can’t Get Ahead, by Tamara Draut (2006)

Draut, a fellow at Dēmos, a New York City-based think tank, describes the challenges facing the age group often referred as Generation X. Her book paints a dismal economic picture for today’s 20- and 30-somethings.

The author describes a debt-for-diploma system that has not only required students to take out large loans but has priced college out of reach for many. The average student now graduates with $20,000 in debt, a figure that rises to $45,000 for those who chose to go to graduate school. This economic reality stands in stark contrast to that of the World War II and Baby Boomer generations, who were more likely to obtain federal grants and graduate with little or no debt.

Today’s generation often accumulates more than student loan debt. Draut describes how deregulation in the credit card industry has led to a new wave of credit offers to those who are younger and less financially secure. The author describes a generation that relies increasingly on credit cards to finance car repairs and other emergency expenses.

Draut describes the phenomenon of dwindling pay for workers in her chapter “Paycheck Paralysis.” With a large percentage of today’s women in the workforce, the author expounds on the fact that it now takes two incomes to reach the major milestones of home ownership and having a child even as these goals could be accomplished with one income forty years ago.

After devoting the first three quarters of her book to describing these economic challenges, Draut explores why this generation doesn’t demand more of their government in helping them live a better life. Former president Ronald Reagan’s influence and his insistence that “government isn’t the solution, it is the problem,” are cited as major reasons that today’s 18 to 34-year-olds are more likely to blame themselves for their shortcomings than to point to failing public policy.

The author often refers to the stereotypes of Generation X as being slackers at the office and as being irresponsible with their money, although she rarely tells her reader from where these criticisms originate. Even so, Draut has told a story that many younger readers will find all too familiar. Although her book is long on describing problems and short on solutions, it is an engaging read. Strongly recommended.

War on the Middle Class

War on the Middle Class: How the Government, Big Business, and Special Interest Groups are Waging War on the American Dream and How to Fight Back, by Lou Dobbs (2006)

As the title suggests, Dobbs takes aim at a number of politicians and institutions in this short volume. The author provides a straightforward account of the process that has led to the exportation of jobs and entire industries from the United States to cheaper labor markets. Dobbs also spotlights immigration policy and health care as major issues that are sorely in need of reform.

Readers looking for an account that picks sides among political parties are likely to be disappointed. In Dobbs' view, both major parties are equally responsible for ethical lapses, and for contributing to the squeeze on the American middle class. The author suggests that more voters follow his lead by changing their party registration to Independent.

But in places, Dobbs’ unwillingness to criticize one side of the ledger and favor another is confusing. One of the better examples of this is when the author lists the eight major conglomerates, which own nearly every major voice in American media. After detailing the mammoth holdings of companies such as Viacom, General Electric, Time Warner and NewsCorp, he assails the media as too liberal. His evidence for this charge is the often-repeated statistic that a large majority of news reporters identify themselves as Democrats. While this is an interesting statistic it’s hard to believe that this factors into news reportage to near the extent as the widespread corporate control over American media.

In spite of these flaws, one is hard pressed not to credit Dobbs with writing a salient account of several key issues that constitute a threat to the middle class. The author writes with conviction and clarity on several important matters before the country. While his book is short on solutions, it has the potential to educate readers on some of the major forces in American life.