13th Mar 2018
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Historian claims the dice are loaded in favour of baby boomers
Author: Ben Hocking
‘Dice loaded in favour of boomers’

An Oxford professor and famed historian has stirred the fires of an intergenerational war by claiming the dice are loaded in favour of baby boomers.

Speaking in Knight Frank's The Wealth Report 2018, historian at Oxford and Stanford Professor Niall Ferguson said that the battle between the generations was “the central problem of our time”.

“In 2001, I published a book called The Cash Nexus, and in it I predicted that the politics of the future would be about generational conflict, not class conflict,” Prof Ferguson said.

“Well, we’re here now. But most of us don’t really have the vocabulary to adapt, because we’re still used to thinking in terms of class, or percentiles: the 1 per cent against everybody else. That’s all anachronistic. The real issue now is, who pays? Is it going to be granddad, dad or the kid?

“This is an extraordinarily difficult question in political economy, because it’s about generational imbalances. Right now, the dice are loaded in favour of the baby-boomers, people like me who were born in the two decades after the end of the second world war, and they’re loaded against newborns, kids and the unborn.

“This is a striking pathology of modern times, this breach of contract between the generations. It’s very hard to fix because the unborn and kids don’t get to vote and the elderly now tend to stick around long after retirement age, and they vote in rather large numbers.”

Prof Ferguson explains that the best way to avoid problems was to try and iron out the inequities before they became too pronounced.

“The solution is clearly to try to strike a balance between the interests of the generations, but that must involve some elements of increased taxation, and some elements of welfare reform,” he explains. “Those are two difficult things.”

Opinion: Beware false claims of an intergenerational war

Professor Niall Ferguson is the latest in a long line of commentators keen to talk up the possibility of a looming intergenerational war.

These discussions always fall along the same lines. Whoever makes the claim is happy to lump all baby boomers into the equation together, as though all people over the age of 50 are all the same.

This is simply not true. The YourLifeChoices Retirement Affordability Index™ breaks down retirees into six different tribes to offer better insight to the retirement experience. These six tribes, defined by household (couple or single), home ownership (own home or renting) and primary source of income (private or Age Pension) offer a really helpful guide when discussing retirees.

The most recent YourLifeChoices survey on retirement income and financial literacy has so far gathered nearly 3000 responses, and of those nearly 40 per cent claimed the Age Pension was their largest source of income.

Prof Ferguson’s claims that the dice are stacked in favour of baby boomers simply don’t add up.

Most Baby Boomers have not benefitted from decades of superannuation that will ultimately benefit Gen X and Gen Y. Most are entirely underfunded for the long years in retirement.

The YourLifeChoices research also shows that those on an Age Pension who are renters (at least 10 per cent of retirees) are doing it tough. They are spending about a third of their income on rising rental costs and cutting back on health services and social activities to live within their limited means.

Those on a pension living in their own homes are barely covering costs, but are able to afford the occasional meal out. This does not paint a picture of retirees living large at the expense of younger generations.

The divide – as it has always been – is between the haves and the have nots.

Labor’s $59 billion tax plan, which we reported on yesterday at least attempts to address this imbalance between the haves and the have nots.

The policy aims to target those wealthy Australians who own shares, roughly 200,000 of the wealthiest retirees, rather than trying the more simplistic approach of cracking down on the Age Pension.

It would be great if more of the policy discussion could look at addressing the real divide, rather than beating up a fake intergenerational war.

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    COMMENTS

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    TREBOR
    14th Mar 2018
    11:20am
    What an utter load of BS - I never got one thing I didn't work damned hard for - up to eighteen or more hours a day at times. I doubt most of the young whine and dine generations could survive it.
    TREBOR
    14th Mar 2018
    11:21am
    If the 'dice are loaded' they were loaded with hard work and often far lower living conditions, and a hell of a lot fewer trips to Majorca (from Britain) etc.
    TREBOR
    14th Mar 2018
    11:25am
    Did he also mention that the dice are loaded in favour of overpaid, under-worked, and under capable academics full of sh!t?
    MICK
    14th Mar 2018
    5:08pm
    Agree Trebor. The current lot only understand spending, lifestyle and complaining about what they do not have. If they learned about hard work, saving and going without they too would prosper. A few do.

    I have little time for academics who so not live in the real world and trot out this sort of BS as fact.
    fred
    14th Mar 2018
    9:04pm
    agree , Trebor . and the local academics in Australian Universities receive 17 % of their salary from their employer mostly State Government funded , while the rest of us receive around 9 1/2 % , they are a protected species and overpaid for not knowing much at all or a lot less than they think
    Captain
    15th Mar 2018
    5:27pm
    Of course the dice is loaded towards the Baby Boomers. They inherited from the previous generation, they have the benefit of 40/50 years of asset gathering. When the BB's cash out, their children will inherit the assets, and then they will be in the firing line for successive generations.

    Damn those Millenniums, Gen X, etc. They are the greedy animals who have stuffed up the generations yet to be born.
    Radish
    16th Mar 2018
    6:01pm
    I agree a load of BS...we grew up after the war...no one had any money...anything I have I worked bloody hard for, no smashed avos or coffee on the way to work, eating out so many nights a week.

    I am sick to death of this crap about baby boomers . Where are these big inheritances they are talking about....my father was away at the war for 5 years and my mother did not work. When he came home he worked his butt off....all holidays if we had them were not that far from home...no overseas trips as you see families doing these days...

    He worked hard and saved hard and good on him and I did the same.

    The darn academics make me sick, sick, sick
    James@
    14th Mar 2018
    11:32am
    Trebor, add to that list Federal,State and Local Govt politicians
    TREBOR
    14th Mar 2018
    11:35am
    Sadly - how true. I just posted on the other strand about pension rise, that each politician costs us $2.5M or so a year on average - that is their effective salary and 92% of that is tax free benefits.

    Nobody else gets full found to go to work, unless they are a robber baron.
    TREBOR
    14th Mar 2018
    11:37am
    That's over 100 times more than a single pensioner gets.

    Are they worth it? I say NO!
    George
    14th Mar 2018
    12:53pm
    This Professor guy - has his credentials been verified or is he a fake? He clearly doesn't have grasp of history like many here, such as Trebir & Rainey, have. Is he qualified for Age Pension - part or full? If not, e doesn't understand either history or the current - the fifth meanest country in the OECD!

    The class warfare is and should be between normal people and Politicians - yes, that entitled class of leeches who have arranged undeserved, special pensions & perks for themselves far in excess of anything others can get. TURF THEM ALL OUT! TURF THEM OUT! (Class Warfare started!!!)
    Retired Knowall
    14th Mar 2018
    7:52pm
    Find the Independents in your electorate and advise them they have your vote, but for that they must be the catalyst for the changes to Pollies Perks. the 2 Major Parties MUST BE TAKEN DOWN.
    If the Independent runs with the rats, it'll only be for one term.
    Priscilla
    14th Mar 2018
    11:43am
    The younger generation want everything handed to them. The older generation had to go without to make ends meet and to provide for their families. We had no money when we were young either but we did not live on credit plus the interest that goes with credit, and we did not spend money we did not have. For instance, when my neighbour and I wanted just to knit a jumper we laybyed the wool and purchased a ball at a time. Can you see any young person doing something like that to stay out of debt? We also settled for a very modest first home and used public transport until we had enough equity in our home to improve our lifestyle. On tv the other night a 19 year old make bought his first home by saving every cent he could. He did not buy a new 4 bedroom 3 bathroom etc. It just shows that if you are willing to save and sacrifice a bit you can achieve ANYTHING even if you are young.
    KSS
    14th Mar 2018
    12:57pm
    "The younger generation want everything handed to them."

    Yes well that's because up to now they have had it all handed to them. so they know no different. They have not seen a recession, they have not seen the struggle of the previous generation to get to where they are today. They have never been told 'no', they have not been allowed to 'fail', and they have been cosetted and pampered from birth. As a result we have a whole generation of indulged, entitled snowflakes with no resilience and no sense of personal responsibility.

    I am sure there are many other examples of that 19 year old you mention Priscilla, sadly I fear they will be made to pay for all those others who are too precious to do the same.
    TREBOR
    14th Mar 2018
    1:12pm
    Unfortunately we, as parents, failed our children in some ways by being too lenient - and I can only thank my lucky stars that both my offspring had parents with a massive work ethic, which they've inherited,along with some brains.

    My son is a tradie and works hard, and my daughter makes movies.... like her mother... a long day every day sometimes.

    They learn more from the way their parents act than the things they say, and it seems more than they get from schooling these days.. schooling in their 'rights' and so forth.
    Rae
    14th Mar 2018
    5:12pm
    Unfortunately I think they will have to learn the hard way through experience.
    Some of us learned by listening to the elders tales and working a couple of jobs, living within our means and saving diligently.

    Some young people have listened and learned and will get ahead too.

    They will also have the less successful looking enviously at the saving pools built over decades of postponing indulgences and needs based spending.
    Old Man
    14th Mar 2018
    11:52am
    I happen to be of the generation before the Baby Boomers, the Silent Generation, and we do a great job at hiding from the experts who want to bash different groups. There is one comment I'd like to make and that is the ridiculous claim that Baby Boomers got free university education and their university was paid for by the government. This is totally incorrect. The system back then was that anyone who attended university paid for the privilege. There were scholarships which were earned by students who excelled in particular subjects or the overall final high school examination. These scholarships paid for the university courses with a little bit left over for books etc. The scholarships were also blind in the respect that they were granted on results only and paid no attention to race, colour, creed or affluence.
    Rosret
    14th Mar 2018
    12:41pm
    It was free for the late baby boomers during the Whitlam era. But no - you are quite correct.
    That's why most girls either became teachers or nurses.
    Nurses were given residency at the teaching hospitals and teachers got scholarships. - We couldn't have the girls costing parents money now could we! ..and that was the generation before the baby boomers.
    Star Trekker
    14th Mar 2018
    1:06pm
    Nurses had to pay board for their bed & meals. No free ride. I know because I was one of those nurses.
    TREBOR
    14th Mar 2018
    1:18pm
    Know what you mean, OM - I finished full year high school at fifteen and a half, but had to go work in industry. Only the rich kids in the family got to go to university, or you could get a scholarship that would pay your fees and books but not feed and house you - for that you needed family which I did not have.

    I was supposed to be one of those bright med school boys... hard to do without any 'network' to support you. The Army fed me better at age 17 and even gave me shoes and clean clothes

    I don't think people truly understand or grasp the reality for many 'baby boomers', which I fit into.

    I think that ran from 1946 to about 1960 or so... not sure.

    Ah - here we go:-

    https://en.wikipedia.org/wiki/Baby_boomers

    "Jump to Definition - In the U.S., the generation can be segmented into two broadly defined cohorts: The Leading-Edge Baby Boomers are individuals born between 1946 and 1955, those who came of age during the Vietnam War era. ... The other half of the generation was born between 1956 and 1964."
    OnlyGenuineRainey
    19th Mar 2018
    6:50am
    Idiots who claim Baby Boomers had free uni education need a fact check. Vast numbers couldn't even stay in school beyond age 15. Families couldn't afford to keep kids in school to leaving or HSC level. There was no Austudy for senior secondary students back then.
    Rosret
    14th Mar 2018
    12:23pm
    Are we responsible for the younger generation demise? I don't think so. I think you need to look to the generation just older than the baby boomers. The one between our WW2 parents and the baby boomers.
    That generation:
    Invented plastic,nylon, space travel, the pill, were the producers behind the rock and roll era, were the founders of mass production and the list goes on.
    Without the pill we would not have had 2.3 children, women would have remained out of the work force, one salary would have been enough to buy a home and limited excess wealth.
    Instead both parents work, they have a large home and investment property and the increased wealth from double incomes has forced up the property market damaging the potential for the younger generation to buy into the market. The generation before initiated the private funded superannuation schemes as opposed to a regular retirement scheme that has really caused a huge potential problem.
    So Knight Frank - blame your father - not my children's father!
    TREBOR
    14th Mar 2018
    1:19pm
    "In 1944, eighteen year olds jumped out of aircraft and landed on hostile beaches to confront the enemy... in 2018 they need 'safe rooms' and 'safe houses' since words can hurt."
    Captain
    15th Mar 2018
    5:37pm
    Trebor, Trebor, twisting the knife in the chest of our pampered younger generations. It is not their fault that they know nothing of the suffering and sacrifices of earlier generations.

    Computer games teach them that you can be killed and re-boot and you magically reanimated and continue on with your merry unawareness.

    Whose fault, not really theirs, but their parents who have never known privations.
    PennWeaver
    14th Mar 2018
    12:29pm
    I find it amusing that those who doth protest overmuch about how easy the baby boomers had it and how they are ruining the housing market for the Gen X Y and others are the ones who will ultimately benefit from those investments as inheritances. No wonder so many baby boomers wish to have a life now, rather than leave everything to some very ungrateful brats who demand everything now without having to put the blood sweat and tears into it previous generations had to.
    Baby Huey
    14th Mar 2018
    12:41pm
    What big load of BS. No validity. No reliability. The good professor is just as detached from reality as Bill Shorten and his Communist Union mates.
    What would the corrupt politicians/government do if all of the self funded retirees drew all of their super down, spent it, and went on the pension? The likes of Shorten, Morrison, and Hockey before would not have any basis for attacking self funded retirees who have worked hard and sacrificed to save for their retirement.
    Rosret
    14th Mar 2018
    12:48pm
    Yep. But its always good to create an us and them division. Ask Hitler and Charlemagne.
    TREBOR
    14th Mar 2018
    2:21pm
    It's called 'expanding the frontiers of knowledge' and will earn you a Ph.D in Utter Nonsense - all you need to do is find a nice little sinecure to 'study' and 'research' social issues such as the baby boomers and the changes THEY wrought for their offspring and future generations, cast it as some kind of conflict between the old and the young -the alleged 'haves' and the 'deprived of opportunity' sets - and off you go.

    Income for life lecturing brain-dead idiots about what is arrant nonsense, and publishing books and having those used as texts for students, and holding a research professorship with funding that requires a fine living for yourself, including several 'research trips' to foreign lands every year or so.
    TREBOR
    14th Mar 2018
    2:23pm
    There is an Us and Them - they're hitting Pearl Harbour as we speak... this is no drill...................

    Same as dick-weeds in a QANTAS chorus who 'feel' 'offended' by the use of everyday terms - it is THEY doing the attacking - not the ordinary folk going about their business.

    It's an old sheila's trick - find some silly 'issue' to start a war over, then blame the other person for it all..... and get the government to beat him up to enforce your right to start that war.

    Crazy.... just crazy.
    fred
    14th Mar 2018
    9:09pm
    yes I agree Baby Huey they are Communists or is it politically incorrect to call them that , stuff them and the Greens who are worst . They will take your house and car and everything in them
    Rae
    15th Mar 2018
    9:12am
    There is a whole bunch of Fascists coming out of closets now as well fred. Very trying times.

    The young will willingly welcome in the Corporate State and Globalisation, as they have been taught, and when the consequences hit blame the baby boomers.

    You can see it happening right now all over the world.
    Tib
    14th Mar 2018
    12:53pm
    Politicians And the like are taking advantage of x and y gens overdeveloped sense of entitlement to try to reduce what little support we get. It's working. They want to raid our super and this is their excuse. They are too stupid to realise that what changes are made for us will be waiting for them when they retire.
    Captain
    15th Mar 2018
    5:41pm
    Tib, don't always agree with you but you are correct here.
    Jem
    14th Mar 2018
    12:54pm
    I’me with you Pennweaver, what a load of blah blah blah!
    ceejay
    14th Mar 2018
    12:56pm
    I am a baby boomer who started work at 13 1/2 while at high school and continued working and studying until a couple of years ago when I developed a chronic health condition. Despite now being on the DSP, I still do the administration and small, light tasks for the family farm, 7 days a week. When I got married at 19, we were given hand-me-down furniture and fittings and baby clothes and equipment from parents and friends. I bought my first brand new, small car when I was 50+. I only qualified for superannuation about 20 years ago, so the sum available to me is much less than I require according to economists to live an ordinary life. I've had to work very hard for everything I have. Now because I live on a non-productive 160-acre farm, Centrelink deems 155 acres of that an asset, leaving just 5 acres and an old farm house as my principal place of residence and a much reduced pension. I see my children going on overseas holidays, buying big, expensive homes and the best of electronics and furniture, and driving good quality cars. They will have superannuation for their whole working life to set them up for retirement. My grandchildren are given the latest phones and electronic gadgets and are seasoned travellers. The adult children have told my husband and I that they will not help us on the farm, which ultimately they will benefit from on our demise....unless we sell it and have a grand old time spending all the proceeds!
    KSS
    14th Mar 2018
    1:01pm
    Sell up and have that 'grand old time' ceejay. Clearly the younger members of your family don't want or need it.
    Rae
    15th Mar 2018
    9:17am
    Have you looked into subdividing off the 155 acres for sale just keeping the 5 acres and house or leasing the 155 acres to another farmer for a bit of income.

    By selling and buying a large block and house in town you could then have the latest things yourself, pay for some extra home help and have a grand time while you still can.
    Not a Bludger
    14th Mar 2018
    1:05pm
    Ben Hocking - what sort of trog/trot are you - stating that labour’s $58bn super raid is just redressing the balance between haves and have nots - just like the soviets of old.

    You forget that so-called industry super funds (all union controlled) hate SMSFs because they cannot get their hands on SMSF money.

    Ex union thug boss Shorten is simply supporting this line.

    It is no more and no less than class warfare of the worst type and blatant theft from retirees who don’t have many shorts in the locker to protect what they earned and is rightfully theirs!
    Not a Bludger
    14th Mar 2018
    1:22pm
    Sorry - for shorts please read shots.
    Anonymous
    14th Mar 2018
    1:54pm
    Spot on N.A.B.

    For Ben to make that idiotic statement shows that the left are devoid of any morals and independent thought

    Shorten sure has a lot of simple minds fooled
    TREBOR
    14th Mar 2018
    2:09pm
    Need for a unified Universal Retirement Packaging Scheme far from the hands of 'business', union, and government hands.

    If any of those bodies wish funding via loans iron-clad - they may apply on merit and offer a genuine business plan.
    TREBOR
    14th Mar 2018
    2:15pm
    As an old Union unpaid delegate, fired by ambush from his remunerative job - and then applying for a Union job proper, I knew the Union movement had started to go off the rails way back in 1992 when it 'encouraged' applications from women and other specified groups - meaning old barricade veterans such as myself were excluded.... nothing but one of the great unwashed and not steeped in the ideology pouring out of the universities at that time....in their eyes, a dangerous Trotskyite with the interests of the people in mind and not the ideology.

    I am not happy with union leaders and past union leaders and now politicians holding privileged seats on the boards of union super funds.

    Like every other greedy business vulture, just exactly how many bites of the gravy cherry do they want?

    Think of bill - union secretary = great super/salary etc stashed away and all job costs covered - politician with great super/salary and all costs covered - union super fund boss with great super/salary and all costs covered.

    How is that any different from the corporate parasites he claims to declaim?

    Your education is proceeding, Grasshoppers.
    Old Man
    14th Mar 2018
    3:01pm
    I read that union controlled super funds will be exempt from the proposed excess dividend imputation credits and will be able to keep claiming a refund.
    Not a Bludger
    14th Mar 2018
    3:34pm
    Old Man - if so - would you please provide a source - because such an exemption would be dynamite in the right hands.
    TREBOR
    14th Mar 2018
    3:48pm
    A fair point re equal treatment, OM.
    Old Man
    14th Mar 2018
    4:42pm
    The announcement by Shorten included an exemption for charities and NFP's

    https://probonoaustralia.com.au/news/2018/03/charities-nfps-exempt-labors-tax-system-reforms/

    The Association of Super Funds is an NFP.

    https://www.superannuation.asn.au/ArticleDocuments/280/sub1428_Treasury_TaxTreatyProgramConsultation.pdf.aspx?Embed=Y

    It could be argued that union controlled super funds will still be exempt and be able to claim excess dividend imputation credits.
    Not a Bludger
    14th Mar 2018
    5:41pm
    Thank you, OM.
    fred
    14th Mar 2018
    9:18pm
    Can some one tell me how Shorten thinks they can exemption for Union based superfunds and none for other funds including SMSF . Will he just give the franking credits as a donation to the union bossesor he maybe generous and give half to the fund members . He must think the public are stupid and cannot see through his lies . Trouble is you get dopes in the LNP Government like Kelly Dwyer and Julie Bishop who don't understand anything about super eg all super funds are generally not taxed in pension Phase and accordingly any tax credits eg Imputation credit and rebated for the share of the Company tax paid before distribution of after company taxed dividends
    Circum
    14th Mar 2018
    1:11pm
    There seems to be two topics here..One regarding the professors opinion,which many are disputing as unreal.The second is the $59 billion tax grab which the author sees as an attempt to balance differences between the haves and havenots.The statistics of how people will be affected doesn't agree with Blinkers Bills claim to affect the wealthy only.
    dreamer
    14th Mar 2018
    2:49pm
    I was born in 1955 my first job was a hod carrier in 1970 on a building site in the uk the same was if you a white collar worker and couldn't do a mans job you got super forget the blue collar workers, thank you hawke and keating
    Alexia
    14th Mar 2018
    3:24pm
    Ferguson is far away from real issues, he must go back and examine social and humanistic tendencies and facts of today's thought in the world instead of taking economic facts as a basis for his analysis. There is no war between people of different ages, only between politicians and their anxious thirst to amass a fortune for themselves.
    Historically some world tendencies have changed a great deal and humans have developed interests in economic facts that did not exist in such a great extent before, but age and ageing have always existed and have been looked at as a sign of wisdom and respect or the opposite, as in many cases happens today.
    Countries have to get used to the idea that people lives longer in today's world and have to be considered and treated with respect, humanity and affection, not looked at as dredge in the countries economy.
    It is everyone's obligation to take care of their old and must be looked at as a government job to arrange the country's economy to serve the issues of providing a decent and enjoyable life for the years left to the older population.
    Australia would be better off if it would look after its people rather than other countries unfortunate.
    Fix your own backyard before you fix the neighbour's.
    Kaye Fallick
    14th Mar 2018
    4:23pm
    think this man just wants to promote his books?
    TREBOR
    14th Mar 2018
    7:15pm
    Of course... academics is like politics - it's all about lining your own pocket first - then the trickle-down from your Olympian majesty will enrich the lives of the paisans below being hit by your merde droppings.

    It's the Irish in me - I do like a good turn of phrase.... now and them.. better than spending days dogging a fled horse....
    Curious
    14th Mar 2018
    4:56pm
    Well, well! Have we learned anything from History, concerning The Great Depression in the 1930's and the destruction of the WWII in the 1940's? Our parents tried very hard to provide a better life for their offspring, who were born after WWII......the Baby Boomers. Their parents worked hard and passed on their hardship experience to this generation. These parents must be given the credit for raising The Baby Boomers right for the dice loaded in their favour in today's economy of a globalization environment. Back the,our Education system was free for all Baby Boomers, thank to Gough Whitlam. The universal health system took care of all young and old. Industrial bargaining secured jobs. Public purses were filled enough to look after the nation's needs. Our nation's borders were safeguarded. Migrants were welcome as a new breed and human resources to our growing Country. My mother was so proud to call Australia home. Her allegiance to this land of milk and honey was so much that it has imprinted my siblings today. It all sounds very much like a God given Country, but there were as much sweats and tears in building up this promised land. The post war migrants came, saw and conquered, the Australian life style, work ethics, cultural diversity and helped to develop a new Australian values, such as international cuisines and emerging developed western economy. Looking back, it is a golden era.

    What has changed so much since the heyday days of Traditionalists and Baby Boomers? The generation gaps between X including Xennials, Y including millennials and Z have individually characterized by their outlooks in life of that era. For example: -

    1. Traditionalists - they are known to respect authority (which comes with age and experience), save their money, and work hard. They also have traditional nuclear family values.
    2. Baby Boomers: - After the strict rules of their parents, many baby boomers rebelled in the 70s, and then became yuppies in the 80s. They grew up in the post-war economic prosperity, they developed a taste of greed and materialism. In this era, the middle class was the phenomenon behind the success of the manufacturing industry before the cyber age.

    3. X Generation: - They are well educated, with higher levels of Gen Xers getting degrees than any group beforehand, but they are thought to be somewhat nihilistic and sceptical, having grown up during major world issues such as the Cold War and the AIDs crisis.

    4. Generation Y is branded as sensitive and entitled. They want instant gratifications with the advance of digital technology. Information highways are always at their fingertips. However, their entry into work force has been hammered by the slump of the economy through globalization. Their competitive advantage has been dampened by rising of the Asian economies, mobility of the workers for the neutralisation of labour costs in the global economy, costly tertiary education not a guarantee for jobs, the lack of empowerment in their jobs and the pride of their family values discounted by unaffordible housing.

    5. What is the solution to lift these Xers' curses? If we don't find one, what can we tell and say about Generation Z?

    6. We all know throughout the world events, we don't trust our governments, political parties, big conglomerations in foreign investments, international companies, economists, journalists and the advance of digital technology, replacing and robbing human productivity.

    7. Should we not admit, the system of the administration need refreshing? The global economic model needs rules and definitions,so that we can have abiding global corporate citizens? This needs a top-down approach to filter a stable and effect governance for the world we live in. For the sake of our future generations, we cannot afford to have a laissez-faire system in our big global economy and to retain a small government for free market in the name of democracy. The Keynesian Theory on competitive advantage of a sovereign state is broken by globalisation. The supply and demand for consumer goods are really threatened by concentration of labour and capital capacity of the superpowers, dumping practices, state-corporations with heavy subsidies. The current establishment of globalisation and Free-Trade arrangements have reminded that of the establishment of the global financial market under the hemp of the International Monetary Fund, no one sovereign state or government would interfere or intercept the onslaught of the Global Financial Crisis. Will Australia be lucky on the second time round?
    TREBOR
    14th Mar 2018
    7:39pm
    I've long said that the two major components of the 'global economy' that have not kept pace are taxation of corporations and industrial relations/labour cost.

    These two are demonstrably NOT 'global' in any sense, but are instead a deliberate concentration by the corporations (rapidly gaining near total control over the planet via capital) of those functions into small areas within the 'global village'.

    There is NO international tax regime, and no international industrial regime and no international employee earnings regime, which, by being concentrated into small areas and not globally as advertised, create a de facto tariff barrier AGAINST higher performing nations with a better standard of living and of income/costs of living ratio. All that is left, in reality,is what actually created tariff barriers in the first place - the essential monopoly on production by specific nations, meaning that every other nation was merely exploited.... and so the future IS tariff resurrection.

    You can liken the current 'global economy' to such "radical" concepts as Islamism, International Communism - both of which, as clear examples but not the only ones, are essentially 'nations without borders' exactly in the same fashion as this 'global economy'.

    It is, therefore, up to a nation defined by its borders to stipulate on what terms that ideology, including globalism, can operate within its borders.

    This, governments respective of this and other nations, have singularly failed to do, but chose to raise their rumps and ours with them, and invite the globalists to enter at will...

    (hush - and that's just me being nice, Paddy...)
    Sundays
    14th Mar 2018
    5:03pm
    The problem is Gen Y are buying into this rhetoric. I had a conversation with a couple who were anti baby boomers. When I said, but what about your grandparents, have they got it easy, should they sell their home and free up capital, the penny dropped! No, not Nan and Pop. Other people then. These proposals won’t get off the ground
    TREBOR
    14th Mar 2018
    7:44pm
    Well done - I have argument with a relative whose spouse is a deputy commonwealth DPP... over my ferocious defence of people wrongfully accused.

    The most telling point is when you arrive at the point of saying:-

    "Wait until it happens to one of yours!"

    Suddenly the scales drop from eyes... but... but... but... that wouldn't happen... mine never do wrong.....

    Neither do those wrongfully accused....... of which as many as one in six may be languishing in prison.

    (welcome to around the world with Trebor again - as someone said here once)...
    Kia
    14th Mar 2018
    7:07pm
    I am a boomer, immigrant and blue collar, so I know how hard we all had to work, as the Spousal person always says: 'easy to spend money hard to hang on to it'. In my adult life, 65 now, I've owned only two cars and both second hand, and saved, saved, saved. I've also had 'that' conversation with Millennials and you have to seriously point out to them that the infrastructures they so use and enjoy were paid for by many generations and their taxes, that our first homes in many cases were very modest indeed. Cars and white/electrical goods and furniture were extremely costly way back when, and 'lifestyle' was a relatively unknown concept, so all in all things should balance to some degree. The reason I mention all this is that as with many in our age group we have been to quite a few funerals in recent times, all perfectly normal you might say. What has been staggering, however, is the almost universal comment on people's life stories that has included the fact that so many of them and indeed many of us had second and sometimes third jobs to make ends meet, something that seems to have been forgotten. The other common thread is that all of them had a serious Service to Community interest which seems to be almost non existent with the younger generation. So not only did we work in jobs that don't exist anymore but we gave our labor away for free and enjoyed doing it. Funny old people aren't we?
    OnlyGenuineRainey
    14th Mar 2018
    8:26pm
    I can't believe, Ben, that you actually took this opportunity to endorse Labor's attack on poor self-funded retirees whose incomes are LESS than the pension, or that you are gullible enough to think a policy that crucifies people who responsibly saved and invested a little for old age and drives more aged poverty, while still giving tax credits to high income earners who own shares, is smart. For heaven's sake wake up! Labor isn't addressing inequity. It's demolishing all incentive and reward for responsible work and saving and making all of us poor in old age. Their STUPID scheme will smash the incomes of millions of very low income earners with a tiny handful of assets, while the big income earners continue to party with their tax credits.

    Yes, this intergenerational warfare is harmful and based on BS, but it's not nearly as damaging as people endorsing dumb policies that will wreck the economy and create hoards of poor people fighting for crumbs.
    TREBOR
    15th Mar 2018
    12:33am
    Yes - it's absurd, Rainey - those with a self-funded retirement fund that falls below pension should receive a top-up to at least pension standard.

    It's not really that hard to work the figures out annually or even three monthly or whatever,and cut a cheque for the shortfall, but the 'government' does not wish to do this.

    It is jammed in the idea that 'its' budget has nothing to do with us and our budget and what it is supposed to produce for those the government ostensibly works for.
    Sophie
    15th Mar 2018
    3:15pm
    I am one of those who happens to agree with Niall Ferguson..Someone has to pay for the current and future pensions. Our Millennial generation is not likely to be so lucky. Millennials..may not benefit from pensions in the future. So although many baby boomers do not want to hear this.. funding retirement falls squarely on the shoulders of Millennials.

    It’s the young who are and will be bearing the burden of those who made no special provisions for their retirement. Granted..for some baby boomers the road was very rough and this may not have been possible..however..many did not think or care of their tomorrows and now the young will have to pay for those past mistakes..
    Circum
    15th Mar 2018
    7:35pm
    Sad comments.I think you have a lot to learn.Your generation regardless of whatever letter they call it has no idea of reality.Yes some people in the past over indulged.The young don't have to pay for that. Many today over indulge daily but see it as an entitlement.
    How many of the young are prepared to help paint parents house these days.Not many as it interferes with their down time
    Sophie
    16th Mar 2018
    6:38pm
    Sometimes the truth can be "sad" unfortunately..please don't take anything I've written personally..

    I'm a baby boomer myself ..
    OnlyGenuineRainey
    17th Mar 2018
    4:25pm
    Sophie, what the Millenial generation will pay for is the incompetence of government - just as our generation is paying for it. No difference. We ALL provided for our retirement via the scheme that was operational at the time, and had been working adequately for a couple of generations - a 7.5% tax levy. Sadly, that money was stolen. And now those of us who saved independently for retirement are being bashed, bullied and deprived and gradually all the benefits of saving are being eliminated.

    Despite this, Australia has the lowest cost retirement funding system in the developed world - just 3.5% of GDP, as opposed to 7.5% average among developed countries. And while the cost is rising abroad, to 10% average in the next few years, our cost will stay static until 2030 when it will begin to fall dramatically due to superannuation.

    So the fact is that Millenials are getting off VERY VERY LIGHTLY - paying far less toward the cost of retirement than our generation did, and by my observation, also doing far less in terms of direct contributions (such as painting the house, for example!).

    All this ''poor Millenials'' garbage is wearing very thin indeed. They are VERY well off compared to our generation. Sure, there are many doing it tough. There always have been. But they are not bearing an unfair or heavy burden at all. That said, the burden would lighten substantially if stupid politicians woke up to the fact that rewarding spendthrifts, cheats, manipulators and bludgers while punishing savers for their diligence until they are ground down into hardship isn't good for the nation.
    Curious
    15th Mar 2018
    4:31pm
    Historians can neither blame Baby Boomers for the misfortune of Gens X and Y nor moan about the meanness of Baby Boomers for not decapitalising to help Gens X and Y. The wealth of the Baby Boomers is not a bottomless pit. Not only Baby Boomers didn’t have the benefits of the savings from the superannuation systems, which were taken placed in the 80’s and refined in the 90’s, successive governments have short-changed them in their old age pension. The surplus of the old pension scheme in the Menzies’ era was appropriated into General Revenue. The old age pension given out instead was nowhere near to maintain a living above a poverty line. Successive governments did their best to down-size the old age pension and to position the concept of self-funded retirement to eventually replace the old age pension. No one can blame the Baby Boomers to hold on every cent they have, ensuring that they will not be disadvantaged by their longevity.
    Historians have oversimplified a complex issue and covered up the Pandora’s Box with a blame game on the Baby Boomers. This is a worry. Have we come to a point now that we cannot trust the Historians, too?
    I would like to appeal to all levels of governments, politicians, political parties of all persuasions, captains of industries, economists, journalists and now historians, to look at the world we live in. The limited resources on this Earth do not any longer allow the concept of “the rich gets riches and the poor gets poorer”. If governments think that they can rob the poor to give it to the rich, this branch of political thinking is at the risk of extinction. This will the pivotal point for the down-fall of the capitalism.
    The rise of capitalism was based on the rules and definitions of governance over commerce and national interests. Individual governments have the power to control those rules and definitions of governance. Not only the concept of globalisation has broken a sovereign state’s boundaries, it tore up the rules and definitions of governance of the boundaryless economy. This is an instalment of a laissez-faire system where the power of money speaks louder. In fact, it can be used as a modern warfare weapon by its own right. An inflation rate of a country has no relevance to the government of state, as the factors influencing this inflation rate now are caused by external force beyond any government’s capability to defend external offences. Continuing privatisation of public utilities by governments and TTP have diminished the right of the administration to govern, to protect and to defend the rights of its citizens. Wake up, our Great Western World!
    OnlyGenuineRainey
    17th Mar 2018
    4:41pm
    I asked my grandchildren for their views. They were horrified that anyone should be so ''dishonest and disrespectful'' to a generation who ''struggled to build so we can enjoy greater affluence''. They say they believe their lives are far, far easier in every way and they enjoy far greater affluence. When I mentioned the cost of education, they replied that it was a worry, but at least it's available - not like ''grandma's day'' when so many were forced out of school at age 15, and anyway there are multiple options that let you get a uni degree very cheaply while working and earning. A granddaughter outlined her plan to leave school at the end of year 11 and work and study to get an arts degree over 7 years with no HECS debt at all. I was amazed at the options available.

    When I asked about housing costs, I was stunned by the reply that when you add up rates and insurance and maintenance, and take into account that older houses need costly repair to sell for a good price, it's hard to see how older people have really achieved much capital growth, especially considering the high interest they paid. Wow! These kids are thinkers! They also remarked that if you force oldies out of their houses, they have to buy something to replace them and most would probably struggle to find cheaper options that are really appropriate for their needs in old age.

    A 15-year-old is earning as much working a few casual shifts as a couple get on the aged pension, and after being put off a week ago, she reported she had 4 job offers. Her brother, aged 14, has $15000 in the bank and is earning $5000 a year working weekends.

    On the other side of the coin, a 'struggling home buyer' complained about the cost of housing, saying raking up a deposit was impossible with their income and costs. I walked through their house and identified $50 a week in very easy savings in 10 minutes flat. And that's without addressing the hefty food bill for shaved ham, avocados (out of season), exotic cheeses, fancy ''eco-friendly'' detergents that do no more than plain old bi-carb soda and white vinegar... I'll guarantee I could find $150 in savings if given the opportunity to examine their spending in detail. Oh, and she pays $60 for a haircut against my $25 and paid $90 for a pair of sandals almost identical to those I can buy at Rivers any day of the week for $30 or less. But she turns her nose up at ''discount stores''.
    OnlyGenuineRainey
    17th Mar 2018
    4:50pm
    I would have NO FAITH in this clown as a ''historian''. He obviously knows nothing, does no research, and is so bigoted and selfish that he would never acknowledge the truth if it bit him.
    MD
    19th Mar 2018
    7:51am
    This subject can be split, dissected, drawn out, extrapolated, reviewed whatever to the 'enth degree and any amount of explanation or difference of opinion to the contrary is little likely to alter any contribution herein. Much less a change of tack by the learned professor.
    Respective generations contemporize their times, meaning the younger ones cannot fully appreciate the values of their parents, grandparents or great grandparents - and regardless of whether any one group continuously bangs on about their respective hardship(s) will not alter the past and certainly little effect the present.

    Although I seriously doubt it will assist the mindset herein a worthwhile read that might prompt some deeper consideration of 'entitlement' is Fergusons' book: 'Civilization'. The following is an extract from a British newspaper (the journalist had suggested the Prof is seen as "provocative") :-
    "Warming to his theme, he cites one reviewer of Civilization who clearly hadn't even read the book before attacking it. "You know what?" he says crossly. "There's a lot of intellectual shoddiness in this country. My interest in my work now is not to wind up British lefties; I couldn't care less about them, not really. I couldn't care less about how they feel. So the problem is not that I like to wind them up. It's that they like to be wound up by an imaginary rightwing historian who satisfies all their emotional needs."

    That his opinion is not restricted to Britain is most certainly evident here in Oz.
    BElle
    20th Mar 2018
    3:11pm
    No mention it would seem of the pre-war and war time generation. How are we meant to survive. We did not have the benefits of Superannuation or any other kind of pension scheme, or a minimal one at best, but all the figures are based on Retirees having a sizeable Superannuation. I do wish some of these "experts" would get their facts right, it would certainly help. Also, it is all very well for the Government to raise the age of retirement entitlements, but what is meant to happen to those who are retrenched or for other reasons Have to retire in their 50's. There is no level playing field we all have our own issues to contend with and don't all fall into the Government or Experts parameters.
    BElle
    20th Mar 2018
    3:15pm
    AND WHO WILL BENEFIT WHEN THE BABY BOOMERS DEPART THIS MORTAL COIL. WHO WILL INHERIT THEIR "WEALTH"? Give you one guess... that's right the whinging mob that keep inventing these statistics. Or as the old say goes " There are lies, Damn lies, and Statistics"


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