Millennials will redistribute wealth in ‘Age of Disorder’ claim financial strategists


Millennials could look to redistribute wealth away from older generations and towards younger ones (Getty)

Researchers at Deutsche Bank, one of the world’s leading financial service providers has some things to say about millennials.

In a report entitled the ‘Age of Disorder’, financial strategists led by Jim Reid suggests that as millennials attain greater levels of influence within governments and corporations they will redistribute wealth away from the older generation.

‘An issue that is quickly emerging as a political force is the intergenerational gap,’ claims the report.

‘Assuming life does not become more economically favourable for Millennials as they age (many find house prices increasingly out of reach), this could be a potential turning point for society and start to change election results and thus change policy.’

Reid suggests that things like the Brexit vote and Trump win in 2016 left millennials (those born between 1981 and 1996) feeling alienated. And, as a result, they will seek to redress the balance when able to influence policy.

‘Such a shift in the balance of power could include a harsher inheritance tax regime, less income protection for pensioners, more property taxes, along with greater income and corporates taxes . . . and all-round more redistributive policies.’

The report also points out we’re in the midst of a technology revolution (Credits: Getty Images/iStockphoto)

The Deutsche Bank report reckons the age of mass globalisation that began in the 1980s will give way to what it calls the ‘Age of Disorder’.

‘The era of globalisation to we are likely waving goodbye saw the best combined asset price growth of any era in history, with equity and bond returns very strong across the board. The Age of Disorder threatens the current high global valuations, especially in real terms,’ it says.

According to the report, there are eight themes that will come to the fore during this Age of Disorder.

  • Deteriorating US/China relations and the reversal of unfettered globalisation.
  • A make-or-break decade for Europe.
  • Even higher debt and MMT/helicopter money becoming mainstream.
  • Inflation or deflation?
  • Inequality worsening before a backlash and reversal takes place.
  • The intergenerational divide widening.
  • The climate debate will build.
  • Technology revolution or bubble?

If you’re interested to delve more into the ideas, you can find the report here.

Let us know what you think of it in the comments below.





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