Thank you Chairman Coats for calling today’s hearing.  

Millennials are central to our nation’s economic, social and cultural vitality. They are the largest generation – bigger than the Baby Boomers – approximately 88 million people. They are also the most educated and racially diverse generation in U.S. history.

But Millennials face significant challenges—in many ways far greater than those experienced by the Boomers. Millennials generally have higher rates of unemployment, lower incomes and more student debt. Many Millennials have had no choice but to delay getting married, buying a home and saving for retirement.

Lasting Effects of Bush-Era Recession  

These challenges were greatly magnified by the Bush-era “Great Recession.” The recession was an economic catastrophe that deeply hurt many Millennials and will have a lasting impact on them.

The Recovery has Benefitted Millennials

We have come a long ways since the darkest days of the recession. The economy continues to recover, the overall unemployment rate has been cut in half, and businesses have added jobs for 68 consecutive months, the longest streak on record.

Millennials have benefited substantially from this recovery. Unemployment is down and wages are beginning to move up. This year’s college graduates will likely enter the best job market in years.

Millennials Fare Poorly in Comparison to the Baby Boomers

Yet significant problems remain.

It is useful to compare what Millennials are experiencing today to what the Baby Boomers experienced a generation ago.

Education

Many Baby Boomers with only a high school education could afford to buy a house, raise a family, save for retirement and pass something on to their kids. But most Millennials will need a college degree to come close to matching that success—and will struggle longer to achieve it.

Student loans

The question is how to pay for it.

The real median income for those households headed by a 25-to 34-year old has fallen by nearly 10 percent in the past 15 years.

So more young people have been forced to borrow money to go to college. The share of households headed by someone under age 35 with student loan debt has more than doubled since 1989.

And they borrow more money too – with median debt tripling during the same period. Some Millennials will end up paying back loans well into their 30s, 40s and even 50s.

Homeownership and housing

And because so many Millennials leave college with student debt, they don’t have the money for a down payment for a first home. Homeownership for those under 35 years old has declined and is now about 2 percentage points below its average in 1994.

Young people are even returning home to live with their parents. The Pew Research Center finds that a larger share of women 18 to 34 years old are living at home (36 percent) than at any time since 1940, when these statistics were first collected.  And the share of men is even higher.

Policies to Support Millennials

I hope we can use the hearing today to not only understand the scope of these problems but to also focus on solutions.

For guidance, let’s look at the first rule of medicine – do no harm.

• Let’s start with education. Should we force students to rely on private student loans that are more costly and come with fewer consumer protections? No – the truth is that Millennials cannot afford it.
• What about government spending? Should we slash spending so we have a smaller government that provides fewer services? Fifty-three percent of Millennials oppose that approach.
• Let’s turn to health care. Thanks to the Affordable Care Act, uninsured rates for younger Millennials have been cut in half, as those under the age of 26 are now able to stay on their parents’ plans as well as utilize exchanges across the country. Should we cave to efforts to repeal the health care law? Of course not.
• Millennials make up approximately seven in ten workers who earn at or below the minimum wage. Should we allow the right wing to block efforts to increase the minimum wage? Clearly, no.
• Should we privatize Social Security? No, instead let’s come together to pass modest measures to make sure that it will be strong when Millennials need it.
• Should we roll back consumer financial protections that help protect Millennials from predatory practices? Some call this “cutting red tape.” I call it dangerous.

But it’s not enough to block destructive actions that hurt Millennials. We must focus on targeted actions that will help them.

I will mention only a few.

• We need to make college more affordable by strengthening federal and state support for higher education, making tuition free at community colleges and increasing investments in Pell Grants.
• We need family friendly policies so Millennial parents can make a living and raise their kids.
• Let’s repair our nation’s roads and bridges to lay the groundwork for a stronger economy. If we don’t do it now, Millennials will pay a very steep price down the road.
• And let’s not ignore what will perhaps be the greatest challenge of our time—climate change. We must fight those who claim that climate change is a “hoax.” Failing to address climate change would leave an unimaginable burden on Millennials and future generations.

Conclusion

The challenges facing Millennials are real, but the solutions exist. Our job is to help chart the course forward.

Let me close by saying that it’s wonderful to have on our panel a colleague from the House and member of the New York delegation. Elise, welcome. I look forward to your perspective and to the testimony of each of our witnesses today.