Government - are you listening

An interesting piece in the Financial Times about the increasing dissatisfaction of the younger generation - Young Americans lose trust in the state.

When younger people are unhappy, ususally one of two things happen:

Revolution - revulutions are generally not led by middle aged or geriatrics. They are led by the young disatistified with their prospects.

Resignation - young people with talent, ability and skill, but with percieved prospects … leave. They take their talents and go.

In this article, it is mostly focused on America’s youth, but there is Gallup data on various friction points. Greece leads on most of the measures including confidence in national government and confidence in the judiciary.

But there is one issue on which Australia leads the pack, on which it wins the gold. Housing:

Housing affordability in Australia is a matter of choice and not chance. It is the product of 3 layers of government policies from planning to tax to imigration to superannuation to pension assets tests. Energy, industrial relations, regulations, etc.

There is a systematic transfer going on from the young to the old. And the youngins have noticed.

Australia’s political class have noticed too but have responded in their usual way … platitudes and theatrics of throwing money.

Unless something serious is done, there will be a reconing. We can do this the hard way or the easy way.

And just remember, that markets tend to adjust. If youngins with skills - doctors, engineers, etc want to leave, it will require higher salaries to replace/keep them. That means inflation.

And speaking of inflation,