I bet this stuff sort of comes off like, “The sky is falling!” but I just think it brings attention to an important trend.
Interesting piece from the Guardian, new thing for me is that this trend is in motion in Europe as well as North America and that the pensioners are not effected by it. There are explanations for all of this, some reasonable, some less so, but that doesn’t change the fact that it is happening and it’s likely to result in a change in Western society.
The article also gave me more evidence to support my hypothesis that Asia is largely ahead of the world in terms of social structure. Here the kids marry very late, because they can’t afford otherwise, unless they have rich parents. Most under 30’s are dependent on parents or older married siblings to help pay bills or provide housing. Inherited wealth is one of the biggest factors to success here, as people talk about being born with a golden spoon or a dirt spoon. Taxes, housing prices, healthcare costs are chipping away at disposable income of the youngest generation. Real wages have gone negative over the past 30 years, while housing and healthcare as a % of income has climbed steadily.
I can’t see this lasting it’s not sustainable. Eventually either the young people get fed up and demand reform via the ballot or the bullet. Or we’ll just become complacent and settle into a 30 year economic decline like the Japanese, while Asia goes soaring by us. It’s also worth noting that our pension funds that resulted in the pensioners income growing so much over the years is likely to run out. Public pensions are grossly underfunded and the Social Security Trust gets robbed yearly by Uncle Sam and they replace the real money with IOU’s bonds (which have been at record low rates for the past 9 years).
From the Article:
“Exclusive new data shows how debt, unemployment and property prices have combined to stop millennials taking their share of western wealth”
“The full scale of the financial rout facing millennials is revealed today in exclusive new data that points to a perfect storm of factors besetting an entire generation of young adults around the world.”
“Where 30 years ago young adults used to earn more than national averages, now in many countries they have slumped to earning as much as 20% below their average compatriot. Pensioners by comparison have seen income soar.”
- Prosperity has plummeted for young adults in the rich world.
- In the US, under-30s are now poorer than retired people.
- In the UK, pensioner disposable income has grown prodigiously – three times as fast as the income of young people.
- Millennials have suffered real terms losses in wages in the US, Italy, France, Spain, Germany and Canada