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munimula

For The First Time The Gap Between The Haves And Have Nots

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Analysis: The Roof Over Your Head will be broadcast on Thursday 16 August, 2007 at 2000 BST on BBC Radio 4.

http://news.bbc.co.uk/1/hi/business/6944853.stm

For the first time the gap between haves and have-nots is generational, rather than one created by class or job opportunities.

This has come about because older people who bought before the price boom of the 1980s are now cashing in on homes worth many times what they paid for them.

And it is today's young buyers who are financing their profits by paying hugely inflated property prices.

That represents a major transfer of wealth across the generations, especially as an increasing number of older people are accessing housing wealth to spend, instead of passing it on to their children as inheritance.

Edited by munimula

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When you cast your eyes upon the skylines of this ...

Once proud nation

Can you sense the fear and the hatred

Growing in the hearts of it's population?

And our youth, oh youth, are being seduced

By the greedy hands of politics and half truths

The beaten generation, the beaten generation

Reared on a diet of prejudice and misinformation

The beaten generation, the beaten generation

Open your eyes, open your imagination

We're being sedated by the gasoline fumes

And hypnotised by the satellites

Into believing what is good and what is right

You may be worshipping the temples of mammon

Or lost in the prisons of religion

But can you still walk back to happiness

When you've nowhere left to run?

If they send in the special police

To deliver us from evil and keep us from peace

Then won't the words sit ill upon their tongues

When they tell us justice is being done

That freedom lives in the barrels of a warm gun?

The beaten generation, the beaten generation

Reared on a diet of prejudice and misinformation

The beaten generation, the beaten generation

Open your eyes, open your imagination

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This is very very very bad news for future growth of the economy, the creatiion of new businesses and the flexibility/improvement of existing businesses.

Sir Talbot Avenger, The The, classic.

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This is very very very bad news for future growth of the economy, the creatiion of new businesses and the flexibility/improvement of existing businesses.

Sir Talbot Avenger, The The, classic.

That's right, as time goes by more and more wealth of people will be used to service debt to pay for super-sized mortgages. This can only be bad for the economy

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The headline is wrong, its at least the second time.

The baby boomers were vastly wealthier than their parents generation.

When you look at the big picture you can see that the baby boomers (of the west) were a golden and lucky generation in economic history.

As my mum puts it, there were no big wars, and there was a good standard of living. It was great to have ones productive years from 1958 to the beginning of this century.

Keep in mind though that ordinary working class people like my mum have reached old age with nothing more than the state pension, and she worked hard all her life. Yes, her bungalow is supposed to be worth 200k, but she can't sell it, its her home. The value in it is notional and will probably be required to fund any long term care she needs as neither of her responsible kids live in her area any more. My father died at 67 with his personal pension reduced to half its expectation by the low annuity rates thanks to the low IR policy of the early 00's. He died before he could enjoy retirement, still commuting the 2 1/2 hours to London to supplement his reduced pension.

It was roses for a few, but don't kid yourselves. Most people still struggled. The big difference with that generation is that if they couldn't afford anything, generally they saved up then bought it. They didn't expect much because they pretty much started with nothing. Courting was done by bicycle, and entertainment was a B movie once a week at most. Dinner out was an alien concept.

At work, their generation did what they were told, or they were fired. As my mum was once told by a boss when she got a bit too familiar (she was PA to the MD of a medium sized chemical company) 'little people shouldn't latch on to the status of big people'.

Holidays were invariably via a family sized frame tent, or in a caravan somewhere like Yarmouth where it rained continuously and back biting became the order of the day.

Many people today buy what they want when they want it, dine out, and feel that they have a *right* to be respected at work. Perhaps the one thing they can't afford is a house (my parents first house was a small Taylor Woodrow estate house so nothing special, it creaked like all modern houses). Perhaps its not a bad trade, owning your own house versus 'the world is my oyster'

Despite my having many sympathies with the young, particularly university tuition fees, I think this idea that they are hard done by, by the golden boomer generation is a huge and painful chip on the shoulder that they just need to let go.

Anyhow, FTB's will in the next few years be able to more easily fund house purchases after the crash. Then many aspects of current concern will seem quaintly historic and we will see Browns need for 3 million new houses as what it is, a side effect of a massive property bubble.

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The headline is wrong, its at least the second time.

The baby boomers were vastly wealthier than their parents generation.

When you look at the big picture you can see that the baby boomers (of the west) were a golden and lucky generation in economic history.

As my mum puts it, there were no big wars, and there was a good standard of living. It was great to have ones productive years from 1958 to the beginning of this century.

Keep in mind though that ordinary working class people like my mum have reached old age with nothing more than the state pension, and she worked hard all her life. Yes, her bungalow is supposed to be worth 200k, but she can't sell it, its her home. The value in it is notional and will probably be required to fund any long term care she needs as neither of her responsible kids live in her area any more. My father died at 67 with his personal pension reduced to half its expectation by the low annuity rates thanks to the low IR policy of the early 00's. He died before he could enjoy retirement, still commuting the 2 1/2 hours to London to supplement his reduced pension.

It was roses for a few, but don't kid yourselves. Most people still struggled. The big difference with that generation is that if they couldn't afford anything, generally they saved up then bought it. They didn't expect much because they pretty much started with nothing. Courting was done by bicycle, and entertainment was a B movie once a week at most. Dinner out was an alien concept.

At work, their generation did what they were told, or they were fired. As my mum was once told by a boss when she got a bit too familiar (she was PA to the MD of a medium sized chemical company) 'little people shouldn't latch on to the status of big people'.

Holidays were invariably via a family sized frame tent, or in a caravan somewhere like Yarmouth where it rained continuously and back biting became the order of the day.

Many people today buy what they want when they want it, dine out, and feel that they have a *right* to be respected at work. Perhaps the one thing they can't afford is a house (my parents first house was a small Taylor Woodrow estate house so nothing special, it creaked like all modern houses). Perhaps its not a bad trade, owning your own house versus 'the world is my oyster'

Despite my having many sympathies with the young, particularly university tuition fees, I think this idea that they are hard done by, by the golden boomer generation is a huge and painful chip on the shoulder that they just need to let go.

Anyhow, FTB's will in the next few years be able to more easily fund house purchases after the crash. Then many aspects of current concern will seem quaintly historic and we will see Browns need for 3 million new houses as what it is, a side effect of a massive property bubble.

Yes its a shame your mum has to rely on a poor state pension, but at least she will be able to sell her house for care.

What will there be for us when we get to that age, no state pesion at all, and no home to fall back on.

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