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NYC economy hit by decline in parental subsidies

June 8th, 2009 by Ken Kaye

Ken Kaye

By CHRISTINE HAUGHNEY, New York Times front-page article on the problem of helping young adults financially in the current depression.

Famed for its concentration of heavily subsidized 20-something residents — also nicknamed trust-funders or trustafarians — Williamsburg is showing signs of trouble. Parents whose money helped fuel one of the city’s most radical gentrifications in recent years have stopped buying their children new luxury condos, subsidizing rents and providing cash to spend at Bedford Avenue’s boutiques and coffee houses.

An example in the article is 24-year-old Jack Drury, who for 18 months after college graduation

followed his passions, working in satellite radio and playing guitar. He earned money as a bicycle messenger and, on occasion, turned to his parents for money.

But as the recession deepened last fall, his parents had to cut the staff at their event planning company to 30 workers from 50. Asked for his help, Mr. Drury cast aside his other pursuits and started work as a project manager for his parents.

In fat times, the parents give their young adult children some leisure; in skinny times, the children pitch in to help the parents. Sounds reasonable to me!

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