How the baby boomers have stuffed the younger generation

FTBFun

Percy1983 wrote: »

Yes you are correct and we will be buying when we are 28 (Only 1 months older than my better half). So yes we are probably ahead of the game abd have worked hard so rightly so.

My point is the generation before bought a good 6 years before we will be doing and did it without putting the hard work into careers like we have had to.

My parents were baby boomers and didn't buy until they were in their 30's - and that was a right to buy council house. I bought my first place at 28 (well, just!).

Some of my married friends bought up to 3 years ago - in fact one couple are already in their second home which will now be their main one for a while now.

Jennifer_Jane

Interesting point about the tax rates, ILW. I was never rich enough for this to affect me, but I remember my brother-in-law (who was a generation or so older than me), having to pay 19s 6d in the Pound. Here is some info from Wikipedia:

"In 1974 the top-rate of income tax increased to its highest rate since the war, 83%. This applied to incomes over £20,000 (£155,247 as of 2011),[2], and combined with a 15% surcharge on 'un-earned' income (investments and dividends) could add to a 98% marginal rate of personal income tax. In 1974, as many as 750,000 people were liable to pay the top-rate of income tax. [4] Margaret Thatcher, who favoured indirect taxation, reduced personal income tax rates during the 1980s. [5] In the first budget after her election victory in 1979, the top rate was reduced from 83% to 60% and the basic rate from 33% to 30%. [6] The basic rate was also cut for three successive budgets - to 29% in the 1986 budget, 27% in 1987 and to 25% in 1988. [7] The top rate of income tax was cut to 40% in the 1988 budget."

So, not only were the 'Baby Boomers' having to deal with extremely high inflation rates, but also high tax rates. I remember my brother telling me about a housing boom because of the MIRAS tax benefits (I did not live in the Country and the country I was living in had inflation of well above 30% and house interest rates of 27% or so. High inflation/interest rates were not exclusive to the UK).

People have more disposable income today than 30 years ago. My bike was paid for over two years using all my Christmas and birthday presents and savings from my part-time job. A lot of my generation could complain that the young of today are spoiled and really do expect things we would never have dreamed of.

Also, perhaps today's young would also remember that in my 20's very few, if any, bank managers would have given a woman a mortgage. It's taken me an awful long time to acquire a little house, and some savings, and a bit of a pension.

ILW

Percy1983 wrote: »

Yes you are correct and we will be buying when we are 28 (Only 1 months older than my better half). So yes we are probably ahead of the game abd have worked hard so rightly so.

My point is the generation before bought a good 6 years before we will be doing and did it without putting the hard work into careers like we have had to.

The ones that did probably started full time work six years earlier.

Percy1983

It does come down to a side debate of what you class as working hard, personally I would say getting qualified in a profession and working in said profession is working harder than leaving school and doing all types of unskilled work.

To put it simply, I have to earn more than my dad (in adjusted terms) to get the same home he did, to earn more money it is generally regardard you work harder. I am earning more in adjusted terms so therefore must have worked harder.

By all means I can agree this is an opinion so you are free to disagree, but neither is right or wrong.

Percy1983

ILW wrote: »

The ones that did probably started full time work six years earlier.

When they where 9?

Butterfly_Brain

MRSTITTLEMOUSE wrote: »

To be fair we voted in a "government" what they did and indeed do is out of our control afterwards.
You only have to look at the present government,how many policies have they gone back on already.

Well said MrsT :T

Kohoutek

Jennifer_Jane wrote: »

So, not only were the 'Baby Boomers' having to deal with extremely high inflation rates, but also high tax rates.

Taxation as a percentage of GDP has been an average of 40% since the mid 1960s. Just because income tax is lower today doesn't mean that taxes altogether are lower. Taxation % GDP has been on a downward trend since the early 80s, but obviously that will soon be reversed by an upward trend.

See page 30.

http://www.ifs.org.uk/bns/bn09.pdf

Butterfly_Brain

mystic_trev wrote: »

Of course it's tough for you young'uns these days, and yes House prices are overvalued, but that's the market rate and that's what you'll have to pay.

It was hardly 'a piece of cake' when I bought my first place, in late 1982. I furnished the House with a couple of deckchairs in the Lounge, and a few bit and pieces bought from a Jumble sale. No car, as I couldn't afford that and a mortgage. *Youngsters I see buying today wouldn't dream of buying a place without nice furnishings and a flat screen TV with Sky etc, and the car couldn't be any older than a couple of years!

* down my way

I agree
When we bought our first house in 1981 we had everything second hand, we didn't have dishwashers, flat screen tv's,computers, or any of the things newlyweds expect today and we had interest rates of 15% and both of us worked.
In fact I remember things that are taken for granted now such as video players/dvd players being nearly £1,000 to buy in the early 80's
We just went without in order to get our foot on the housing ladder. Life wasn't as easy as some seem to think.

abaxas

Butterfly_Brain wrote: »

I agree
When we bought our first house in 1981 we had everything second hand, we didn't have dishwashers, flat screen tv's,computers, or any of the things newlyweds expect today and we had interest rates of 15% and both of us worked.
In fact I remember things that are taken for granted now such as video players/dvd players being nearly £1,000 to buy
We just went without in order to get our foot on the housing ladder. Life wasn't as easy as some seem to think.

Like is not as easy now, manufacturing and labour is cheaper. Hence products are cheaper.

Take for example

BBC micro 1983 - £399
Laptop today - £399

But if we take inflation into account and price the BBC in current value of pound.

BBC micro 1983 - £1000
Laptop today - £400

The example of a £1000 tv is the same.

Lots of things are MUCH cheaper today hence the money we have left over from housing/eating etc goes alot further.

Jennifer_Jane

Kohoutek wrote: »

Taxation as a percentage of GDP has been an average of 40% since the mid 1960s. Just because income tax is lower today doesn't mean that taxes altogether are lower. Taxation % GDP has been on a downward trend since the early 80s, but obviously that will soon be reversed by an upward trend.

See page 30.

http://www.ifs.org.uk/bns/bn09.pdf

Thanks for posting this. It's extremely interesting and I'll read it when I have more energy. I did look at Page 30, however, and agree with your comment.

Nevertheless, if you are earning £10,000 a year, and paying £9800 in tax (yes I know that you don't exactly work it out like that, but too lazy to work it out), you would be pretty upset. 750,000 people were doing that.