The principle reason why the younger generation finds itself gobbling up the capital of their parents is straightforward enough: decades of falling interest rates have made it progressively more difficult to accumulate risk-free retirement savings for retirement or asset purchases. On the flip side, the same falling rates lead to rising asset prices, putting things like home ownership out of reach for many.
The Keynesians won’t be satisfied until the savings of every last one of us is drawn down to zero.
Over half of parents surveyed say they’ve dipped into their savings to help their adult children, with one in five making significant sacrifices. Nearly half have also put off paying down debt to provide support, and more than two in five parents reported helping at the expense of their retirement savings. Overall, about 16% of parents reported significantly putting off hitting other financial milestones in order to prioritize their children’s financial needs.
…continuing to help out adult children can lead to a “vicious cycle” where if parents overextend themselves, they might end up jeopardizing their own financial security and may need to call on their children for support at some point.
Greed is all that’s left in this monetary system that was totally out of whack decades ago as scammers are our current society infrastructure…putting a price on everything…including massive creation of currency and credit out of thin air and yet suckering the citizens to pay interest including taxes.
Imposed insurance?
Really good representatives have bought our politicians in making it imposed.
Monetary debasement is also a major problem.
Maybe their kids would actually GROW UP if they didn’t have someone wiping their asses every time there were challenges. You get EXACTLY what you incentivize. ALWAYS.
Sure thing glow worm. Glad I’m not a kid of yours.
$20/hr is POVERTY PAY in 2023. What does that tell you?
$1.2 million for a falling down wreck of a house is not a “challenge” my dear boy. It is an insurmountable mountain of debt that will take longer than one human lifetime to pay off for anyone not making $300K++ per year. Presently you are going to see mortgages with 100 year amortizations, where the second generation is enslaved to keep paying for it.
What is being incentivized there? Hmm?
This is true; my brother lived in Geneva, Switzerland in the ’80s. The cost of a detached home was $800,000 at that time and they had 100 year mortgages.
I agree for day to day life they have to stand on there own. But we help them with a downpayment. With the cost of housing in Greater Vancouver it was the only way to give them a chance. But everything else, figure it out, we did and everyone has to.
“decades of falling interest rates have made it progressively more difficult to accumulate risk-free retirement savings”
This is true. I take care of my mother’s finances, and would vastly prefer to have her in investment-quality bonds. But with interest rates often below the rate of inflation, that’s a formula for poverty, so I have her in dividend-paying blue chips. Riskier but really no choice.
“The Keynesians won’t be satisfied until the savings of every last one of us is drawn down to zero.”
^^^ THIS ! ^^^
Until people begin to realize the greatest damage to the US and any other free market economy has been the embrace of fundamentaly communist ideological controls (Keynesianism) we cannot and will not ever witness our truely awesome economic potential (capacity) and therefore systematicly fail to significantly improve standards of living for any other than the oligarchy / plutocracy / aristocracy who are and always have been the true fascists.
They are only have Keynesians, since they don’t bother with the difficult part of his prescription of paying off debt during periods of growth, instead being content to punt it to forever.
A lot more of it has to do with Boomers not willing to do anything about immigration because they liked that it made their house worth more.
Now their children get discriminated against and they get articles written trying to blame everything but themselves.
George
Take a deep breath as that’s quite a load you just woofed up.
Are you going to be alright?
Yes!
Younger people tend to be more politically left wing than their parents, so they’re even less willing to do anything about immigration. One shouldn’t blame the victim, though, since no one has ever explained to them that governments in Canada borrow such insane amounts of money that we would go bankrupt if we weren’t expanding the economy by bringing in lots of immigrants. Those same governments then wait for people to die of old age before they issue a building permit, which drives up housing prices even more. This is all about socialism working its magic, and has nothing to do with parents being more evil than their kids.
After seeing the Covid shiteshow, who says .Gov is waiting for people to die of old age, they just sped up the dieing part.
It is “draining the sugar bowl”….similar to Marxist regimes….they drain the sugar bowl until it is empty and then they find there is no one to refill it.
GDP per capita in $US per World Bank – Canada $51,000 USA $70,000
Canada cannot support first world consumption when it is close to a third world shithole. In 8 years Trudeau has managed to turn Canada into a pariah for world scale investment. Do you wonder why all our doctors come from third world shitholes and all Canadian doctors move to the US? There’s not enough money here to support a first world medical system.
There isn’t enough money in the US either.
GDP is a bad criteria to use for the financial health of a country, because it includes government spending.
In countries with huge deficit spending like the US, that large government spending inflates the per capita number and papers over the rot in the actual productive economy.
I know a fair number of people with kids, mostly in their thirties, who spend money like it physically pains them to keep it in their wallets.
I know lots of people of all ages who just can’t manage their money. Or is it their consumerism?
Maybe that’s why so many want the Government To DO Something!
They laugh when I tell them I carry 100$ CAN And 100$ USD in my wallet for emergencies.
Oh and rural farm families never ever had parents and grandparents that gave up a section or more of land and equipment to help the next generation?
Typical myopia from you hillbillies. Two faced hypocrites.
But I guess you numb nuts would rather it be horded so that the government can seize it as inheritance tax. What a buncha dummies you are.
Maybe folks are learning or relearning what so many immigrants know: helping your kids out while they are young and in need is better than dying with it and letting the govt tax their inheritance. I don’t see a problem with this, helping out family is all good as far as I am concerned.
I wonder though ,how much of this change is driven by the increase in immigrant parents in the survey.
You should look into the ejido concept in Mexico…..it resulted in smaller and smaller plots of land until they no longer became viable except for subsistence.
The government can find many ways to seize assets…..I mean, any government that can tax thin air can think of many other ways of doing so. Perhaps you recall when Red Ed Broadbent suggested years ago that a 10% “one time” tax on RRSP savings should be imposed on Canadians.f
I dont know what rural economy you are talking about. Any I know, at least the past 30 years or so, no one is giving anyone ‘sections of land’. Federal government tax policy made it preferable to sell outside the immediate family until a recent Conservative bill was put forward.
As someone more in the Austrian school when it comes to economics, I wouldn’t describe what we now enjoy as strictly Keynesian but a gross perversion of Keynesian economics. Keynes would not have been in favour of QE in both good times and bad. Harper was actually a practicing Keynesian, thinking about actually balancing a budget and using surpluses to pay down debt during the good times. Keynesian economics is flawed because it presupposes the fallacies of central planning, central banking, and fiat currency resulting in the prolongation and exaggerating business cycles and currency manipulation.
Agreed in all respects.
Yeah, it’s funny how the left seems to forget the second part of the Keynesian concept. In fact, they do exactly the opposite and demand that when surpluses arise, they must be put to “services” immediately.
All Kleptocracies end this way.
After robbing Peter to pay off Paul.
All the Peter’s move.
Or stop having recognizable assets.
When you produce nothing,yet consume endlessly..you will wind up broke.
Basic law of life.
We are watching the Free Lunchers reaching adulthood.
Funny how “different” it is,when it is you being pillaged.
Of course the children,are “Gobbling up the assets of their parents”,this is what we taught them to do.
Does the phrase,”Gimee Dat” ring any bills?
Government,the banks(Same thing really),advertisers and producers of consumer goods have all endlessly assured the modern consumer,”You can have it all,just 10 easy payment”..
Show business has made millions promoting the “Consumer Lifestyle”,while our real production of wealth has declined..
We can produce no natural resources,thanks to Rule and Regulation by idiots.
We can do no value adding before export,thanks to idiot trade deals ,rules and regulation..
We produce less/per hour worked every year.
But we import an endless string of junk,problems and parasites..
And now we are firmly revealed as governed by foreign agents,directing internal bureaus of theft and Idiocy..
Well Can Ahh Duh,how did you go bankrupt?
Slowly at first,then suddenly.
We are past 3rd world .
Every smart kid is seeking to steal what they can and get out before they are caught..
What we once referred to as “The Brain Drain”.
Greed and stupidity are the root causes of this problem.
People voted for governments with zero financial sense to cater to idiots who think that things are free and they are entitled to them.
Greed and stupidity, and forgetfulness. And, er, something else…
More international reasons.
I think you’re going to find, after we see a little more time go by, that 90% of our current economic problems are enemy action.
The reason why no one MAKES anything in this country anymore is government. If we change that one little thing, suddenly it all turns around.
Easier said than done, sadly.
This country is done because people are happy with the way things are, even if it means losing everything.
There are zero rentals around for spawn to move to. He’s 20, employed.
Finally found something, but I’ve been charging him 400 a month for rent for a while. That’s fair. What he didn’t know was that I was putting that away in an envelope for him.
He is overjoyed, and grateful that we did that, as he has school in May again. Mechanic.
Upvote!
Justin’s media says that we should experience this differently. Apparently if we stop eating and paying the rent for a while, we can go on “big” and “lavish” vacations. I’m guessing that they won’t be as big as the ones Justin goes on every other day, or as lavish as his trip to London, but judging by the photos it seems like a nice idea:
https://www.cbc.ca/radio/costofliving/scrimp-and-save-rbc-spending-tracker-1.6810036
On the other hand, there seems to be a worrisome undertone in the piece along the lines of, “forget all that global warming crap, we’ve got real problems now”.
This exemplifies what Canadians are: clueless and frivolous.
One would think with the higher costs of things, they would watch their budgets.
But no …
So the Boomer generation was spoon fed the illuminatti excrement that if you get a university degree you’ll get a better paying job, and they fed that to their kids while the illuminatii told the kids it didn’t matter what the degree was in or how much it cost because they were going to inherit the greatest transfer of wealth in mankinds history. The reality is that we now have a population that is unable, because of lack of skills, to maintain the society they inherited and with it they have inherited the greatest transfer of debt in mankinds history. Yet truth be told we keep electing the politicians that install the bureaucratic illuminatii that keep shovelling this crap at us. If you believe what is happening to our society in the West is just a coincidence then then you just keep eating that manure, Buttercup.
When the covid restrictions put the stepson’s business out of business, and it took him 3 years and 3 moves to finally get permanently working and settled again, what was I supposed to do, let him live on the streets?
He is certainly not a lefty grifter, and having to live like this totally went against his righty self sufficient and responsibility attitude.
My retirement advisor said; “Plan for 100.”. I replied; “Don’t tell my kids.”.
I’m so old I remember the stories that we’re looking at the biggest wealth transfer in history. Maybe I missed to who (or is it whom? I’ll ask ChatGPT 4 and get back to you). The old fart nursing industrial complex is designed to hang on the steady drip of too-healthy but just stick-enough boomers and early Xers while they pay adorable Phillipinos crappy wages. That is until our savings are gone.
If they could figure out, Matrix style, how to turn us into batteries I’m sure Guilbealt would welcome it as a new renewable energy source and still not pay the help.
In Quebec and NY during COVID they made some ‘decisions’. Now there are thousands burning Pappy’s meagre inheritance down in Florida while mocking ‘Maga-a-largo’ and listening to Pitbull on the AM radio of their 1992 Je Me Souviens Ford Aerostars.
My only goal for my kids was that they become self-sufficient and they did. Modest help from me when they were starting out, help that was repaid. They expect nothing when I die and the money I have is being used to support us until we die and there will not be much left.
Please not another whine about how the boomers took everything and left nothing for the young people. Bullocks. What people forget is that boomers were squeezed from the beginning. I spent my entire Grade 7 in Edmonton in a portable (in January with -25F temperatures, we never took our coats off) because the school system facilities did not catch up with the boomer growth). I was lucky that I was accepted into a university program when I first applied – many of my friends were not because of over crowding. When I graduated from university (with no debt because it was almost impossible to get a student loan unless you were declared an independent individual – I worked at least one if not two jobs during university and still graduated top of the class and I’m not that smart) it was right into a really bad recession, which was followed by super high mortgage rates (remember those 16, 17,18% mortgages). By the time I ended up buying a house in the early 1990s by interest rate was still 8.2% – yes the house was cheaper than today, but it as a dump and I was only earning a little over $30K.
There is a nice 1,000 sq ft bungalow across the street from me that was put on the market before Christmas for $249K – it is now $205K and probably could be had for $190K (granted I live in Regina so it is not the costs of Vancouver, Toronto etc, but then maybe you should look at moving to a cheaper place – lots of good jobs going in SK). Nothing wrong with it other than updates on bathrooms/kitchens (maybe 40K in total) and repair the roof (10K). I was speaking to one young couple while I was doing yard work and they didn’t like that they had to fix it up (but they also didn’t have the 400K to buy a house all done). And THAT is the difference – I was prepared to fix my dump up, but many house buyers to day are not. So don’t cry for me that you are priced out of the housing market.
“…before Christmas for $249K – it is now $205K…”
We haven’t seen prices like that in Ontario for nearly 20 years. I looked at a 3 story row house in Toronto, 2019, that needed a full gut and rebuild, including the foundation. Million dollar refit for sure, there was a creek of running water in the basement. 4 inches deep, and flowing like a trout stream. Don’t ask about the roof.
That house sold for 1.7 million the same day it listed. That is before the WuFlu frenzy. Somebody threw a couple million at it, and now it looks like Architectural digest. If they flipped it they could sell it for $4M. But they’re into it for $3M so the profit is only extreme, not obscene the way it used to be.
You can see the same thing happening in Kitchener, Burlington, Hamilton, even Niagara Falls. That little dump across the street from you is worth $800K in -Kitchener-. Okay?
So let’s not get excited about the Younger Generation not wanting to fix up their starter dumps, shall we? Nobody wants to spend money and do a ton of work so some other, richer guy can have a turn-key house. We all do it because we have to.
Or they fix it up and live in it for 7 to 10 years – an agent once told me that you only really make money after owning the house for about 10 years.
The housing market – when the feds talk about it – consists of Toronto, Vancouver and Montreal. And of course if you want to live in those very expensive cities, you pay the price. I have little sympathy for those who decide to move there and then complain. There are lots of jobs in other cities
As for rentals, there is a huge mismatch between what is needed and what is on the market – and that is down to local governments who issue the building permits and charge huge development costs. In Regina and probably most other mid-size cities there needs to be lots of good studio and one-bedroom apartments with minimal services. That would accommodate a lot of people who might be deemed homeless. But instead most of the units being built are 2 and 3 bedroom apartments (great for families) that also end up with lots of costs associated with them.