Col Rouge:

Isn't it amazing what a bit of freshly-baked irony will do to get the juices flowing. What is more interesting is, that you appear to actually believe some of my previous posting points. (It says A LOT about you).

Anyway, thanks for the words of "wisdom". I'll take them on board and deal with them appropriately.

I don't have any “expectation to entitlement” just an expectation that people behave rationally (which is VERY hard). Religion disqualifies most people here.

Like you, I pay my taxes and I vote, but I haven't seen much rationality amongst politicians lately.

RE: Buying 'out one of those “business owners” '. I don't need to do that mate! As a quad-degreed professional I have been self employed for over 30 years and reckon I can just about survive without a bunch of whingeing employees. However, it doesn't meant they don't have an expectation to entitlement (like a minimum wage). Oops, sorry, a minimum internationally-competitive wage - those Chinese/Indian peasants are getting paid more now.

I think Australia has been sold/flushed down the toilet by the economic rationalists for over a decade now. So John Howard has been all to ready to pull the chain.....(and retire on his taxpayer-funded pension).

Leith, my perspective is almost the opposite - I'm quite well aware that my wife and I aren't always the most responsible budgeters, and have lived beyond our means at times. But, largely due to the fortune of natural abilities that have enabled us to succeed in well-paying jobs, combined with a generally fortunate upbringings, we've never genuinely struggled at all, and now that we both work full-time, are easily paying off our debts, and could handle another several interest rate rises without any great stress. So if the biggest crime was having high expectations and not knowing how to manage money, then why are we escaping punishment?

I also believe that frugality is to a large extent a skill that has to be learned - our natural inclination is to satisfy our instincts where possible. Those who grew up earlier generations had little choice but to learn frugality, whereas more recent ones generally haven't had the need (or opportunity).

Either way, blaming others for their inability to manage money is not particularly helpful.

Wizofaus. By your thread, I'm not sure whether you understood my post. I was simply responding to the numerous negative comments by older bloggers that young people are lazy, don't save, irresponsible with money, and therefore deserve to get hammered by higher interest rates.

The fact remains that housing has risen to such a level that younger buyers have no choice but to take on large debts (on two incomes) just to afford a basic house, so to label us as financially irresponsible is both unfair and misguided. This situation contrasts to older generations who were generally able to afford cheap well located housing on a single income.

So its a bit rough to attack the young simply because they have borrowed heaviliy and are sensitive to interest rate rises as many of us have had little choice. My situation, where my wife and I saved $125k over 8 years to cover the 20% deposit and stamp duty (equal to 2.5 years of my after tax income), is just one example where, despite being strong savers and financially responsible, we will still get burnt by rising interest rates [we still owe $350k, so each 0.25% interest rate rise costs us $875 in additional annual interest]. This isn't something that previous generations had to worry about simply because they bought their houses so cheaply.

Leith, I understood it...the point is that I would accept the "lazy, doesn't save, irresponsible with money" charge...and yet we haven't been "hammered" by interest rates. So the fact that others have can't simply be put down to their own actions. Circumstance has a good deal to do with it.

Great article, Tony!
This sentence says it all:
"The campaign focus on key marginals and key demographics actually corrupts the search for the good society."

Well said Leith - good to see someone bringing a bit of balance in to this debate.

At present, there seems to be a perception from the older generation that the only reason why the youth could possibly be having money troubles is if they're wasting their money on ridiculous fripperies. How dare they!

Perhaps it's not surprising that there's a similarly flawed view from the younger set in response, that the elderly are simply conservative windbags who want to stitch up Australia from foreigners while upping the pension and making the youth work harder.

Truth of the matter is, there are youth who waste money, but as Leith points out, there are plenty who don't.

In a previous thread I made the point that I had to work full time while also studying to get through university, which in the past, was completely paid for by the government.
Now we have HECS and the Ausstudy payments aren't enough to live by.
The response was essentially that the only reason why the youth could be doing it tough was if they were wasting their money.
That may be the case for some who have family money to support them, but for others it isn't.

It's quite concerning that so many older people have that perception.

What's heartening however, is that on balance, there are also plenty of older people who don't fit that stereotype either, and are keen to elect a government with a bit more moral backbone, for the sake of their grandchildren.