"Inter-generational tension is not just because boomers have got rich from QE driving asset prices higher, especially housing,"
"In the UK and especially France, pensioners have broken the public finances in two of the countries who can least afford it. Bonkers!"
"We 'need' a fiscal crisis for politicians to be able to act."
Runaway government spending on citizens older than 65 in the UK and France has surged, increasing public outlays and deepening intergenerational inequality. Quantitative easing after 2008 and 2020 amplified asset prices, notably housing, disproportionately benefiting older and wealthier cohorts. Pension spending in the UK and France has strained public finances in countries with limited fiscal capacity. Political dynamics allow wealthier Baby Boomers to exert outsized influence, hindering reforms. Some argue a fiscal crisis is necessary to force politicians to enact corrective measures. Longstanding bearish theses predict prolonged economic stagnation and worsening prospects for younger generations.
#intergenerational-inequality #pension-spending #quantitative-easing #public-finances #gen-z-prospects
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