Critique on Graduates Returning to the Nest- Kim Ceres

“As new graduates return to the nest, economy also feels the pain” is an article that explains the affects of graduates moving home on the economy. This article describes how recent graduates move back to the nest in order to save money. Which is beneficial for them but it has a dramatic affect on the economy. Recent graduates that do not move back home have the potential to have a large affect on the economy due to the fact there are a lot of goods that they would need. New graduates need items such as cars, refrigerators, silverware, etc. Before reading this article I never realized the effect that recent graduates have on the economy. In addition, I found it to be very interesting how much the current economy is affecting students. Especially to the extent in which, that students are opting to move home instead of paying for housing. I thought it was interesting how Anuk brought up the argument that companies do not want to hire students right out of college due to lack of experience. I disagree with the argument that companies are less likely to hire students right out of college because a lot of times companies would rather hire new workers. This is because they are cheaper and usually have stronger computer skills. Although, I feel that lack of experience could be an issue for some professions that require more experience in a particular field such as a head of a department or an upper level manager. I agree with the argument that since graduates are moving back home this has a strong affect on the economy. I agree with Anuk when she explained how the economy is “losing” out on the recent graduates’ consumption. Due to the fact, that since they are moving back home they will not be needing to purchase larger items such as refrigerators, microwaves, and other household appliances. This decreases the output in the economy since, graduates will be consuming much less than they would if they were not living at home. In addition, I agree with the argument that since aggregate demand is decreasing due to the lack of consumption, it results in a surplus in the economy. In turn, decreasing the level of production and increasing unemployment. If recent graduates had more faith in the economy it would help to increase consumption dramatically and raise GDP and hopefully help to decrease the unemployment rates.