Poorer than their parents?

[chem1st]

Has anybody being listening to this radio programme on radio 4?

 

The first considered the jobs market.

http://www.bbc.co.uk/iplayer/episode/b012tpzg/Poorer_Than_Their_Parents_Jobs/

 

The second, pensions.

http://www.bbc.co.uk/iplayer/episode/b012w9sr/Poorer_Than_Their_Parents_Pensions/

 

The first talks of how youth unemployment is higher now, how education costs far more, and how people even pay for internships.

The idea was touted that a young person could pay a reduced rent of £200 a month to live in a room in a shared house, whilst providing 10 to 15 hours of care for an older homeowner, their free time would be restricted, and weekend outings limited to once a month, however, this would allow a young person to do more unpaid internships...

Here is a link to the scheme, homeowners and perspective tenant-carers need to pay £1000 registration each. Ideal tenants would be student social workers.

 

 

The 2nd episode talks of pensions, a few figures were mentioned.

 

A young person born today will be expected to pay £68k into the state (via pension & healthcare)

A young person born in the next decade will be expected to contribute £160k to the state.

Meanwhile, many baby boomers will have received £220k from the state.

 

Pensions ages will rise, and contributions will increased. Young people will have to pay more for longer to receive less.

 

Currently, we have men aged 60 entitled to pension credit, often combined with housing benefit and council tax benefit, bus passes etc., this vastly exceeds what one can expect to earn for a full weeks (40 hours) of minimum wage work. These people might have been claiming dole for life, and never forced to work for their 'dole', unlike the next generation who will be forced to work for their dole via the work program.

 

One commentator, thought, today's young people would not be poorer than the parents, he said economic growth of 2.5% over 30 years would lead to a doubling of the economy, and that young people could expect to earn twice as much.

However, he would be wise to note, current growth is well below that, and that inflation of basic items exceeds 10%, whilst wage inflation is practically non existent.

With inflation vastly exceeding growth, and wages remaining the same we are all being made poorer. Unless inflation is accompanied by wage inflation, growth does not make the working class better off.

 

Also take time to consider the increased cost of housing today, The total lack of access to council housing and vastly reduced stock, not to mention the lack of security of tenure in the private sector, and the increased costs of renting off of private landlords. Even those fortunate enough to access council housing, will be denied security of tenure for life.

Increased income taxes for the poorest, higher utility and transport costs. The periods of unemployment people face in our precarious labour market. Reduced access to and lower amounts of allotments on which one can supplement his income by growing his own food.

The cost of child rearing (now that 2 parents are expected to work, thanks to feminism women now have to cook, clean AND work). And increased stealth & health taxes upon beer, cigarettes, car parking etc.

 

When you think about it, the next generation, will be poorer than their parents....

 

It is said that young people are delaying adulthood. That they are putting off 'moving out', 'having children', and 'saving for the future'.

 

One thing is for sure, it isn't by choice.

[poppins]

Has anybody being listening to this radio programme on radio 4?

 

The first considered the jobs market.

http://www.bbc.co.uk/iplayer/episode/b012tpzg/Poorer_Than_Their_Parents_Jobs/

 

The second, pensions.

http://www.bbc.co.uk/iplayer/episode/b012w9sr/Poorer_Than_Their_Parents_Pensions/

 

The first talks of how youth unemployment is higher now, how education costs far more, and how people even pay for internships.

The idea was touted that a young person could pay a reduced rent of £200 a month to live in a room in a shared house, whilst providing 10 to 15 hours of care for an older homeowner, their free time would be restricted, and weekend outings limited to once a month, however, this would allow a young person to do more unpaid internships...

Here is a link to the scheme, homeowners and perspective tenant-carers need to pay £1000 registration each. Ideal tenants would be student social workers.

 

 

The 2nd episode talks of pensions, a few figures were mentioned.

 

 

 

Pensions ages will rise, and contributions will increased. Young people will have to pay more for longer to receive less.

 

Currently, we have men aged 60 entitled to pension credit, often combined with housing benefit and council tax benefit, bus passes etc., this vastly exceeds what one can expect to earn for a full weeks (40 hours) of minimum wage work. These people might have been claiming dole for life, and never forced to work for their 'dole', unlike the next generation who will be forced to work for their dole via the work program.

 

One commentator, thought, today's young people would not be poorer than the parents, he said economic growth of 2.5% over 30 years would lead to a doubling of the economy, and that young people could expect to earn twice as much.

However, he would be wise to note, current growth is well below that, and that inflation of basic items exceeds 10%, whilst wage inflation is practically non existent.

With inflation vastly exceeding growth, and wages remaining the same we are all being made poorer. Unless inflation is accompanied by wage inflation, growth does not make the working class better off.

 

Also take time to consider the increased cost of housing today, The total lack of access to council housing and vastly reduced stock, not to mention the lack of security of tenure in the private sector, and the increased costs of renting off of private landlords. Even those fortunate enough to access council housing, will be denied security of tenure for life.

Increased income taxes for the poorest, higher utility and transport costs. The periods of unemployment people face in our precarious labour market. Reduced access to and lower amounts of allotments on which one can supplement his income by growing his own food.

The cost of child rearing (now that 2 parents are expected to work, thanks to feminism women now have to cook, clean AND work). And increased stealth & health taxes upon beer, cigarettes, car parking etc.

 

When you think about it, the next generation, will be poorer than their parents....

 

It is said that young people are delaying adulthood. That they are putting off 'moving out', 'having children', and 'saving for the future'.

 

One thing is for sure, it isn't by choice.

 

I dind't read the whole thing but it's a good idea except I dont see why the student should have to pay half the homeowners bills, maybe food bills but thats it, their contribution is being a companion,/shopping ect giving the family peace of mind being with the elderly parent.

[chem1st]

I dind't read the whole thing but it's a good idea except I dont see why the student should have to pay half the homeowners bills, maybe food bills but thats it, their contribution is being a companion,/shopping ect giving the family peace of mind being with the elderly parent.

 

That scheme could only work in London, and it is only possible because of the disparity between housing costs and wages.

 

Fureai kippu is a much better way of managing the care burden UK (and in your case, US) society faces. Especially when you consider how common it is for families to live in different parts of the country, and even the globe!

[Suffragette1]

It's all very depressing and I worry for my children. As it is, my generation has suffered from pensions/property etc poverty and many of my peers who were born into affluent middle class families are downwardly mobile.

[chem1st]

I would have updated this post, but the 3rd episode was postponed so a program about the stock market crash could be broadcast.

[Agent Orange]

I was reading an article about how the baby boomers and their greed. Made for an interesting read. It was suggesting that baby boomers that were coming up to retirement and who were in a position to do so, should think about giving something back to society to help the youth of today.

[HeadingNorth]

Poorer than parents?

 

 

My parents had no inside bathroom, no electricity, no central heating or double glazing, no car, and were never sure from one week to the next if they could afford to feed us. People who complain about being poor nowadays usually mean they can't afford the newest Playstation game or to go on holiday more than once a year!

[chem1st]

The 3rd episode has been broadcast today.

 

It looks at Inheritance.

 

http://www.bbc.co.uk/iplayer/episode/b012zx09/Poorer_Than_Their_Parents_Inheritance/

 

It starts off, saying how the 'Self made man' of the 20th century has gone, a lot of wealth is now accumulated and passed on, like it was in the 19th century.

 

Boomers stand accused of stealing their children's inheritance.

 

Boomers are fed up of being been blamed for the economic evil, they paid their taxes, and they are frustrated they can't help their children.

 

It describes the housing bubble where people who bought in the 80s benefited from privatisation (but not as much as the banks). Their housing wealth is in part used to finance their lifestyles but they also have a sum left over to pass on to their children.

 

The days of the 'self made man' are gone.

 

The programme then goes on to interview a man who bought a council house for £19k, and released £30k of equity a few years later at the peak of the boom when it was valued at £145k, in 20 years the equity will be gone, no inheritance for his children.

 

If inflation is to be the medicine for society, then I worry for the old as their savings are obliterated, all pensioners should have a somewhat generous basic income.

[Agent Orange]

The 3rd episode has been broadcast today.

 

It looks at Inheritance.

 

http://www.bbc.co.uk/iplayer/episode/b012zx09/Poorer_Than_Their_Parents_Inheritance/

 

It starts off, saying how the 'Self made man' of the 20th century has gone, a lot of wealth is now accumulated and passed on, like it was in the 19th century.

 

Boomers stand accused of stealing their children's inheritance.

 

Boomers are fed up of being been blamed for the economic evil, they paid their taxes, and they are frustrated they can't help their children.

 

It describes the housing bubble where people who bought in the 80s benefited from privatisation (but not as much as the banks). Their housing wealth is in part used to finance their lifestyles but they also have a sum left over to pass on to their children.

 

The days of the 'self made man' are gone.

 

The programme then goes on to interview a man who bought a council house for £19k, and released £30k of equity a few years later at the peak of the boom when it was valued at £145k, in 20 years the equity will be gone, no inheritance for his children.

 

If inflation is to be the medicine for society, then I worry for the old as their savings are obliterated, all pensioners should have a somewhat generous basic income.

 

Boomers are part of the problem, through no fault of their own. A peak in births has given us a larger population of pensionable aged citizens and that's adding to the problem.

[gnvqsos]

It's all very depressing and I worry for my children. As it is, my generation has suffered from pensions/property etc poverty and many of my peers who were born into affluent middle class families are downwardly mobile.

 

Downward mobility is rare in the UK-do your family now live in tower blocks,or are they forced to down-size to a three bed semi and send kids to stae schools?You should count yourselves as very unlucky.