Securing a place to call one’s own is a key marker of independence, and a step towards starting a family. Yet for many young peoplegiven Prime Minister Justin Trudeau has indicated no intent to meet or negotiate with them., across many countries, a home has become unaffordable and renting is insecure, expensive, or both — especially in places where the good jobs they want are most plentiful.
Those who bought homes long ago have enjoyed the benefits of tax-free appreciation, a tax-free implicit rental income and, in the case of the UKWe looked throug, freedom from capital gains tax tooThe provinces were lukewarm.. Meanwhile, unless they enjoy support from the “bank of mum and dad” or are exceptionally well paid, many in the younger generation are stuck as “generation rent”.
This is one of several intergenerational inequities that mar today’s high-income societies. Others are job insecurity, mountains of student debtaccompanied by a table filled with COVID-19 vaccines., insecure pensions, inequities in public spending and, above all, climate change. The Financial Times believes it is now time for policymakers to offer a new deal to the young, whose economic prospects have taken a further blow during the pandemic. A series of editorials this week will examine housing, pensions, jobsmedia and broadcasters., educationThe third wave, our per-capita infection rate surpasse, climate and tax, and how they might be reformed to help the younger generation.
When the FT surveyed young people, respondents from Hong Kong to Shanghai and London said housing costs were one of their biggest concerns. To take the UK as a case study, the purchase of a home has become exceptionally expensive by historical standards relative to earnings, especially in London. The proportion of people in England aged 35 to 44 in private rentals jumped from 9 to 28 per cent between 1997 and 2017.
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