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Interest Rates and Populism

Discussion in 'Property Market Economics' started by Graeme, 26th Sep, 2016.

  1. Graeme

    Graeme Well-Known Member

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    The economist Frances Coppola has put together a piece on interest rates over the long and short term.

    A Dent in the Surface of Time

    Starting from this graph, showing rates over the last 5,000 years.

    [​IMG]

    She makes the point that young adults, the tail end of the Boomers, would have faced high interest rates on their mortgages. But as they approach retirement, they now have low returns on investments, which makes retirement more precarious.

    Throw in a few more factors, including globalisation and technology hurting jobs, the GFC, China, and extended lifespans, and things aren't looking good for them.

    Coppola concludes that the rise of populism is due to politicians targeting the old, not the young. You can see that in Brexit, which was supported by the over fifties. And she points out that there are an awful lot of votes from the Boomers.

    Incidentally, there's another piece by Coppola about the British housing market, which will also appeal to some around here.

    Don't Blame the Boomers
     
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  2. Graeme

    Graeme Well-Known Member

    Joined:
    26th Jul, 2015
    Posts:
    258
    Location:
    Melbourne
    Somewhat related to the above, a piece about how those born in the latter part of the Baby Boomer generation in the UK are likely to suffer in retirement due to the closure of occupational pensions schemes.

    Boomers and Busters

    Going back to the rise of populism theme, that Coppola (Frances, not Francis Ford :p) brought up, here's a piece largely about Brexit.

    Why are the Boomers so angry?

    It was prompted by rant from one of the author's friends:

    This is the last ‘f*** you’ from the baby boomers. They took the secure corporate and government jobs with the guaranteed pay rises and final salary pension schemes and benefitted from property they bought cheap and sold dear. They burnt the bridges behind them by colluding with the dismantling of the very things that had brought them prosperity. Their last act will be to burn the economy before they die.

    OK, it doesn't answer the question posed in the title, but perhaps asking it is the important thing.
     
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