Over the past couple of years the FT and the Economist (journals not noted for “left wing” thinking) have published a series of articles (of which this is another) spelling out the consequences of a lack of home-building in the UK (mainly due to excessively tight planning controls), high levels of public debt, and unfunded pensions. The effects include an ongoing transfer of wealth to existing home owners, most of whom are over the age of 50, a trend towards renting, and a general increase in inequality. Neither political party can be expected to mention this, because pissing off older voters and homeowners is an electoral no-no. But two decades from now a much smaller workforce will find themselves owning very little, and being taxed to the hilt to support the (unfunded) pensions and spiralling health care costs of retired baby boomers who plan to live until they are in their 90s. And the young will be too few in number at the ballot box to do anything about it.
Posted on: Wed, 21 Jan 2015 10:13:55 +0000