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Young individuals in the UK may feel overwhelmed by the financial challenges they encounter, believing that past generations had it easier economically. Adding to their concerns about owning a home and navigating a volatile job market is the unsettling news that the public debt in the UK has reached 100% of GDP.
This debt load will burden taxpayers for years to come. Currently, paying just the interest on the country’s debt consumes approximately 7.3% of public expenditure—more than what is allocated for defense (4.8%) or transportation (3.8%).
A portion of these funds will be directed towards essential future public services, while some will be used to address issues stemming from historical underinvestment in critical infrastructure like water and railways.
In past decades, UK governments utilized infrastructure assets such as British Gas to generate revenue, selling them off at discounted rates. Older generations who could afford shares profited from these transactions.
Today’s youth have also borne other costs, such as disruptions caused by COVID lockdowns that forced closures of schools and universities to protect older individuals. Additionally, Brexit—largely supported by retirees—has restricted young people’s ability to live and work in the EU.
Despite these challenges faced by younger generations, pensioners have seen a significant increase in their average income over the last two decades compared to working-age adults. The median income of pensioner households now surpasses that of households with children after housing expenses are considered.
2024-09-30 01:15:03
Source from phys.org