Hugo Rifkind had an article in The Times today about being a Xennial (too old to be a Millennial, too young for Generation X), and I sent him the following tweet as a reply:
I have this theory that the financial crash has caused Gen X to disappear. The ones who had enough assets to cope merged up, the rest down.
— Thomas W., A.o.P. (@arcofprosperity) October 26, 2017
Hugo and 77 other people (so far) were kind enough to like it, so I thought I’d elaborate a bit on my theory.
A lot of the stuff about the Baby Boomers, Generation X and the Millennials can be traced back to Howe and Strauss’s Generations from 1991. This book examined earlier American generations and claimed to identify a four-generation cycle. They then defined the new generations that were emerging at the time and tried to predict their future very roughly. In particular, they expected a huge crisis once the Baby-Boomers had started to retire (perhaps around 2020), which Generation X would sort out and then hand over power to the Millennials.
This is clearly not what happened – the crises (9/11 + the financial crash) happened much sooner than they expected, while the Baby-Boomers were still in office. They actually mentioned this possibility briefly on page 382:
What happens if the crisis comes early? What if the Millennium – the year 2000 or soon thereafter – provides Boomers with the occasion to impose their “millennial” visions on the nation and world? The generation cycle suggests that the risk of cataclysm would be very high.
Furthermore, in their historical analysis they clearly don’t assign a standard length to generations, so they would themselves have expected the generational boundaries in the 20th century to require some tweaking once the big defining events had taken place. It’s therefore completely in their spirit to revisit the definitions they suggested more than 25 years ago.
They actually don’t even stick to four generations per cycle all the time. What they call the Civil War Cycle contains only three. As they write on page 192:
[It is] America’s only three-part cycle – the one whose crisis came too soon, too hard, and with too much ghastly devastation. This cycle is no aberration. Rather, it demonstrates how events can turn out badly – and, from a generational perspective, what happens when they do.
I’m postulating that this has happened again. The crisis came so soon that at least half of Generation X hadn’t yet managed to get high enough up the housing ladder (or build up assets in other ways) to allow them to benefit from the asset boom that was a result of the financial crash. As a result we now have a huge split in most western societies: On the one hand, older people (Baby Boomers and older X’ers) often are asset-rich and have paid off most of their house, as well as having a good pension. Other members of this generation are less rich, but they might at least have a cheap council house that is affordable on their salary or their pension. On the other hand, younger people (Millennials and younger X’ers) don’t tend to have much wealth: They’re either renting in the private sector, or they’ve paid so much money for their house that a crazy amount of their salary is spent on the mortgage. They don’t have decent pensions, and they don’t really expect ever to be able to retire comfortably. They also typically grew up being told to expect a great and prosperous life, and they weren’t expecting things to turn out like this.
I was born in 1972, so right in the middle of Generation X, and I think we felt different from both the Baby Boomers and the Millennials before the financial crash. However, I now feel more and more similar to the Millennials, and further and further removed from the Boomers. So I think we might have to redefine the Baby Boomer generation as stretching all the way to the late 1960s, and the Millennials starting immediately afterwards. (I don’t believe it’s a clean break – whether somebody belongs in one generation or the other ultimately depends on whether they had enough assets when the economy collapsed.)
I think we can now also tell when the Millennial generation ended: The youngsters who don’t remember the time before the financial crash have a different mindset because they didn’t spend their childhood expecting a rich and easy life. They also happen to be the smartphone generation.
So to finish this blog post, let me redefine the generations as follows:
- The Baby Boomers (too young to remember WWII, and old enough to have built up their wealth before the financial crash): Roughly 1940–1969.
- The Car-Crash Generation (grew up expecting an easy life, but suddenly the rug got pulled away from under they feet): Roughly 1970–1999.
- The Smartphone Generation (they don’t remember the easy years, and they live their lives through their smartphones): Roughly 2000–.