You know, I find this argument so utterly tedious. Economics can be boiled down to old people verses young people. Polarising policy debates and setting one generation against another.
The UK Reform Party are pushing a commitment to the triple lock on state pensions. Not because they believe British pensioners deserve a good deal. No, it’s populist bandwagon to lock in the vote of one generation. Knowing that there’s a higher likelihood of older people voting for them than younger people [According to opinion polls].
It’s true that there’s a madness that has overtaken the British mentality. However, it’s not new. The value of land and property far exceeds its utility. The marketplace has been one of ever forcing a finite commodity to a higher price. The owners and inheritors of land and property have gained whilst its has become harder for younger people to get a foothold.
There have been different times. I remember my father talking about the inter-war period. It was of his father’s time. Practically farmland could not be given away. Estates were broken up. Labour was short. Taboos were challenged. The dynamic of marketplace for changed.
However, in the post-war period, the last 70-years, the cost of a modest dwelling, as a ratio of average earnings, has rocketed. Ownership of land and property has become concentrated.
British humour addressed the situation in a famous TV sitcom. As said by the character Del boy over breakfast – this time next year, we’ll be millionaires. Only Fools and Horses captured the aspiration. Only that Del boy though it was second-hand cars that would lead to riches. Now, Office for National Statistics (ONS) data shows that roughly 27% of people aged over 65, in Britain, live in households with a total wealth of exceeding one million.
So, what do we conclude? That this pot of wealth has been taken from young people in a transfer from one generation to another. No, that would be playing a sectarian political card worthy of an unprincipled populist. A foolish strategy too.
Deep within British culture there’s an attachment to assets. This particularly goes for commodities that are restricted in supply. Remember Del boy got his wish in the end. Antiques saving the day. Now, amongst most popular TV shows is the Antiques roadshow.
Maybe it’s a latent mistrust of bankers. The shady image of people who hoard money for the sake of hoarding money. In Britain, holding land and property are seen to be a stable assurance of long-term security. I’ve heard it said about land many times – they don’t make it anymore.
The tragic element here is not that young people finding it harder to become just like their parents. To harbour the same attitudes towards land and property. It’s more a question of society undervaluing their contribution to prosperity. Now, and in the future.
It’s pure idiocy to set one generation against another. It’s a mean political trick. What does need to change are the rungs on the ladder, especially at the early stages of life’s journey.
For example, the law in respect of student loans is dire, unjust and unsustainable. Making young people pay a higher marginal rate of tax, when early in their working lives is abysmal. The government penny pinching of education funding and thinning out of courses is short-sighted in the extreme. Apprenticeships must be substantial not hollowed out routes to poor rewards. The world of work [and leisure] is changing more rapidly than it ever has in the past. It’s imperative that society equips young people with the tools needed to navigate a complex and dynamic world. It’s not generous to make a priority of all aspects of education and training. It’s absolutely essential.
John Vincent 