Sunday, August 25, 2019

The Young Getting Poorer

Young Australians today face the prospect of being the first generation in living memory to be worse off than their parents, the Grattan Institute warns in its Generation Gap report.

Poorer young Australians have seen a downward trend in their wealth.

Rising house prices, high debt, stagnant wages and under-employment all threaten young people’s ability to progress as much as their parents did. The report dismisses the stereotype of a millennial financial hedonism, finding that young people today are spending less on non-essential items than in the past.

...younger households have made barely any gains compared to a household of the same age 12 years ago,” the report says.
If low wage growth and fewer working hours is the new normal in Australia, then we could have a generation emerge from young adulthood with lower incomes than the one before it at the same age,” Grattan Institute’s Danielle Wood warns. Such is already the case in the US and UK.

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