So how will the younger generation react to the housing price bubble?
The Millenials. That group who have been thrown under the bus by the politicians to feather their own nests.
No longer able to get the ‘Real job‘ that Joe Hockey and his cigar toting mates advise, because it was outsourced to Asia and casualised. The Millenials will earn less than their parents and be able to spend less on housing and cars.
No wonder they have no loyalty to the system and travel the world as Woofers and digital nomads. Why stay and invest in a place that has taken your future?
In Generation Rent, economists Shamubeel and Selena Eaqub say this leaves many Millennials bereft of “both social and financial security”.
Russell Brand has, in his own way, been pointing this out for years.
“The capacity to own a home will be powerfully affected by the slowdown in [their] earnings,” she says, “especially for entry-level workers and the crushing consequences of student loan debt.”
NPR News article worth reading.
Doomed to rent on the outskirts of town or be raped by landlords in the city, overcrowding the only real option, reminds me of a trip to Manila. The ‘Service sector economy’ workers leaving home 2-3 hours before work – just to travel the distance to work.
In the UK, organisers are actually trying to effect change – More here…
If Joe thinks his barista and taxi driver will put up with that in Sydney and Melbourne whilst he basks in the ‘Rich bastards enclave’ in the nice areas of town, he’s the biggest fool. The days of servants putting up with that are long gone. The internet (as basic to a Millenial as oxygen) has offered up travel brochures of opportunities of a better life.
Your enclave will look like a scene from an apocalyptic movie real quick. The rubbish collectors will turn the tables as they have the marketable skills to get work anywhere. Not much use for an ex treasurer.
All societies need leaders and workers. All societies have the ‘Below average’ and the ‘Above average’. Both need a place in the economy and in the society. Every rich man’s enclave needs caretakers. Look after them badly and you will reap what you have sown.
A wise man would seek to create meaningful opportunities instead of posing in the mirror and pretending he is Lord of all he surveys. Many a revolution has started this way. The internet will spread the word faster than the pigeons of the past.