Kidnapping signals split, economist says | Liverpool City Champion
If parents thought that home schooling, mediating feuds and giving everyone snacks 15 times a day was enough to get their kids through lockdown, they might have been wrong.
It turns out that if they didn’t simultaneously build them a portfolio of stocks to rival Gordon Gekko’s, they might have failed.
According to a recent study by comparison site Finder, 270,000 children under 12 across Australia now have active equity portfolios in their name.
This is a main economist trend at the Center for Future Work that Alison Pennington attributes to “financing the pandemic era.”
After central banks flooded global economies at the start of the pandemic, dropping interest rates to record highs, those with money in the bank had to think of another way to make it work for them.
Some invested in real estate, while other cash flow households threw their savings into stock accounts, often on behalf of their children.
As a result, the better-off households will emerge from these few ruinous years with their children ready for life. Countless more will end the era of the pandemic in a dire dire situation than ever before, deepening the intergenerational wealth divide.
“There are huge implications as it is clear that not everyone has the money available to invest in investments,” Ms. Pennington told AAP.
“We will see, in this era of pandemic, increasing levels of inequality between households.”
With 1.7 million people receiving government disaster payments and others suffering pay cuts, losing their jobs and struggling to make ends meet, the concept of having extra money to invest is laughable for many.
“There are hundreds of thousands of children growing up in poverty who … will never have excess income to put into investment accounts,” Pennington told AAP.
As economies struggle to save themselves over the next few decades, the implications for children with no wallet, no savings, or no real prospect of employment are overwhelming.
“It’s depression 2.0,” Ms. Pennington said.
“We want to avoid falling into the same levels of poverty and deprivation as in the 1930s, but it doesn’t seem like governments are serious enough about spending and investing, and taking the leadership necessary to prevent this from happening. occur.”
Paths to a good job, income and security are difficult to find, due to the collapsing labor market. Youth unemployment is more than double the adult average.
For those who cannot tap into the “mom and dad bank”, the outlook is bleak, says Pennington.
“As a parent watching over this environment, you would of course do what you can to increase your children’s financial security in the future.
“But for a poorer person, those avenues don’t exist.”
The phenomenon is indicative of a depressing level of overall economic security, she said.
Associated Australian Press