Economic Study Proves Kids Born in the 1980s are Financially Disadvantaged

Publish Date
Friday, 7 October 2016, 9:13AM
Photo / Getty Images

Photo / Getty Images

Sorry children of the 1980s, you're screwed - and this time it's official.

In addition to crippling house prices and a debt-laden future, young people have been dealt a blow by protectionist attitudes which could affect their economic prospects for years to come.

That's according to the International Monetary Fund's (IMF) latest World Economic Outlook which warns countries turning inward following a long period of economic stagnation could lead to lower global growth prospects in the short-term.

It comes following a report that shows those born in the 1980s only have half the wealth those born a decade earlier did at the same age and are unlikely to catch up. That makes those in their 30s in the UK the first post-war generation not to earn more in early adulthood than those in previous decades.

IMF chief economist Maurice Obstfeld said eight years after the financial crisis the world has moved "sideways" with developing countries picking up the slack while more advanced economies stagnate.

The organisation expects advanced economies will grow just 1.6 per cent in 2016 - much less than the 2.1 per cent last year.

The warning comes as countries around the world from the US to Europe lurch to the far-right in the midst of fears of immigration, terror and the consequences of unrestrained globalisation which many feel has not been to their benefit.

It's perhaps most pronounced in the UK where young people face a decade of uncertainty over their relationship with Europe following eight years of recovery from the 2008 recession.

Think tanks Demos head of citizenship Ralph Scott said the June referendum highlighted a huge identity gap in UK politics that had previously remained hidden and left many young people disillusioned with their economic, cultural and political prospects.

"Their economic prospects are much poorer," he said about the generation moving into the workforce as the government grapples with what Brexit means."

The changes in the UK will also have a profound impact on young Kiwis wanting to live and work abroad who are likely to face tougher restrictions on visas and a business environment geared towards favouring local employees.

Read the full story at nzherald.co.nz