In today’s discussion, we dive deep into the current state of the economy, societal struggles, and the urgent need for leadership that truly cares about the future. This candid conversation sheds light on the challenges young people face, the increasing cost of living, the housing crisis, and the broader implications for society if these issues remain unaddressed.
Young people today, especially the Gen Z cohort, are facing unprecedented financial hardships. Unlike past generations who could make ends meet on a single income, many young individuals now find themselves borrowing just to survive. The cost of living has skyrocketed, and the traditional path of working hard, saving, and investing seems out of reach for many.
“These young people are having trouble making ends meet. They actually borrow to make ends meet. It’s just things are so goddamn expensive.”
Back in the day, one wage could support a family with a home and a stay-at-home parent. Today, that’s almost impossible. This economic pressure is compounded by a lack of financial education in schools. Young people often don’t learn how to save, invest, or manage money effectively, leaving them ill-equipped to navigate inflation and rising costs.
One proposed solution is to reintroduce practical financial education in schools. Teaching students how to save, invest, and manage their finances like a business could empower them to get ahead rather than fall behind.
Without this foundation, many young people fall into the trap of easy credit options like Afterpay, Klarna, and Zip, which promote spending beyond means and contribute to growing debt.
Housing affordability remains a major concern. Currently, the average house price is around 8 times the household income, which is far from the ideal 3 to 5 times. This situation is worsened by rising interest rates, bureaucratic hurdles in construction, and local councils increasing rates dramatically—sometimes by over 10% in a single year.
“The prices of properties need to come back. It needs to be between three to five times household income. Increase the housing stock and make it cheaper for builders and developers.”
Complicated consent processes and excessive costs to build essential infrastructure like supermarkets drive up prices for everyone. This lack of competition in retail also keeps prices artificially high, with monopolies like Food Stuff dominating the market. Introducing more competition, such as Walmart or Aldi, could help lower prices and provide relief to consumers.
Many frustrations stem from government policies that seem to prioritise short-term political gains over long-term economic health. Increasing minimum wages, while noble in intent, can have unintended consequences like passing costs onto consumers and exacerbating inflation.
There is a call for strong leadership with a business mindset, someone who can manage the country’s economy like a company—focusing on sustainable growth, competition, and reducing bureaucratic inefficiencies.
“We need people like Donald Trump—someone who runs the government like a business and cares about the people.”
The conversation highlights the importance of leaders who cannot be bought or manipulated, who think beyond the next election cycle, and who prioritise the welfare of future generations.
Rising unemployment, inflation, and financial instability have far-reaching effects beyond just numbers on a spreadsheet. Increased job losses lead to higher rates of domestic violence, theft, and mental health issues, including suicide.
Economic stress strains families and communities, creating a cycle of despair that is difficult to break without systemic change.
The widening gap between the rich and poor threatens to create a polarized society where only the wealthy thrive while the middle and lower classes are squeezed further.
“The rich get richer, the middle class gets squeezed down to the bottom, and then you’ve got the government. It’s going to be those two groups running western society, which is a downhill slope.”
This division erodes the sense of ownership and pride in one’s community. When people don’t own property or assets, they lose incentive to maintain and improve their surroundings, leading to societal decay.
Despite the grim outlook, there is a call to action. Society needs leaders who think long term, who prioritise economic stability and opportunity for all, and who understand that the economy is the backbone of the country.
Some key steps to consider:
By making these changes, there is hope that the next generation can live better, own property, and find purpose in a thriving society.
The current New Zealand economic challenges are complex and deeply intertwined with societal issues. Without urgent reform and visionary leadership, the risks include growing inequality, social unrest, and a decline in the quality of life for many.
It’s crucial to address these problems head-on, not just for ourselves but for the generations to come. By empowering young people with financial knowledge, creating affordable housing, fostering competition, and demanding accountable leadership, we can work towards a more stable and prosperous future.
Let’s hope that those in power step up before it’s too late, and that society as a whole embraces the responsibility to build a better tomorrow.
Rising living costs, high housing prices, and limited financial education mean many young people borrow money just to meet basic needs, unlike previous generations who could live on one wage.
While intended to help workers, wage hikes often lead businesses to raise prices to cover increased costs, contributing to inflation that affects everyone.
Leaders who focus on long-term national interests, reduce bureaucracy, and foster competition can help stabilize and grow the economy, benefiting all citizens.
Teaching saving, investing, and money management from an early age equips young people to build wealth, avoid debt traps, and stay ahead of inflation.
Financial strain increases stress, domestic violence, crime, and mental health issues, which in turn affect community wellbeing and productivity.