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Cramer: Government can't handle 2016's business crushing consumers

Cramer figures out millennials

For those who are wondering why there is no growth in the market and low inflation, Jim Cramer says to just take one look at the business crushing environment. Experience is powerful, materialism isn't. Value reigns over all.

On one hand, there are the jobs that don't require a degree that are being crushed, and the businesses that started to replace them require one to be a genius.

"Welcome to 2016, where no one is ready for it and everyone is stuck in it," the "Mad Money " host said.

Consumers these days would be willing to pay up for Netflix, Costco and Amazon Prime memberships, but refuse to pay retail prices. They would rather use Uber than own a car, and if they do, they are willing to drive a few extra miles to Costco for cheaper gas. They bring their cellphone with them everywhere so they can price compare, but would spend money on make-up in places like Ulta so they are picture-ready at all times.

If it's not an app, if it's not on your cellphone, chances are it is not a part in your life.
Jim Cramer
Canadian consumers shopping at the Eaton Center in Toronto, ON.
Brent Lewin | Bloomberg | Getty Images

Those are the same consumers that would rather use Instagram or Snapchat, because their parents use Facebook. They won't open a traditional checking account because they bank online and use Venmo to pay for things anyways.

"If it's not an app, if it's not on your cellphone, chances are it is not a part in your life," Cramer said.

Meanwhile, the world that Cramer described is one where the Fed is still trying to figure out what it can do to boost business formation, Congress seems like it is capable of nothing, and the presidential candidates are "probably too old to understand the new normal."

These are the same challenges faced by so many companies, employers and employees.

"I want you to think about it when Janet Yellen testifies again tomorrow, because she clearly isn't. The old fogies who have gerrymandered themselves into Congress sure don't have to think about it, which is unfortunate because they control spending, which could potentially create real jobs, " Cramer said.

The president will never understand what it is like to use Uber or buy his or her own groceries when they have secret service protection.

"It is all zero-sum, including the stocks of the companies that live or die based on the description I just gave of the 2016 economy," Cramer said.

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