The Harsh Truth: Gen-Z's Reality Check for 2024 and Beyond
This is an attempt to explain how things that sound like a good idea are making you poorer and slowly eroding what makes Australia a good place to live.
I have recently come to the realisation that most of Gen-z do not understand the impact of the current economic and political situation and how this directly impacts you from a cultural and an economic perspective.
This is an attempt to explain how things that sound like a good idea are making you poorer and slowly eroding what makes Australia a good place to live.
Let's not mince words: the world is an absolute shit show. Europe is embroiled in conflict, with the Russia-Ukraine war dragging on. The Middle East remains... well, complicated. We've seen assassination attempts on former presidents, and America is grappling with a severe identity crisis. The nation is deeply divided between the far-left "woke" ideology and the far-right, who seem hellbent on perpetuating the American military-industrial complex's profiteering from global conflicts, including Ukraine.
Closer to home, the situation is equally grim. House prices continue their relentless upward trajectory, defying logic in the face of record-high interest rates. These rates have added an eye-watering average of $1,200 per month to mortgage repayments, squeezing homeowners and aspiring buyers alike.
Still people continue to buy, with limited housing supply, suburbs that you’d never even consider living in will go for 200-300K above asking price. Alot of this price growth is driven by migration. In 2023, immigration figures hit a staggering 672,000, and all indications suggest this trend is accelerating in 2024.
Speaking of housing, the rental market is a nightmare. Vacancy rates in Perth have plummeted to an absurd 0.6%, while rent prices have soared to new heights. It's a perfect storm of unaffordability and scarcity. And let's not forget Australia's raging inflation problem. As if the situation wasn't dire enough, it's added a further $7,224 to my HECS debt.
From a financial standpoint, it has never been worse to be 20-30 years old, you are slowly being priced out of the market and the dreams of owning a house in the neighbourhoods that you grew up in are largely over, without a significant cost.
But here's the kicker: as challenging as the economic situation is, the cultural landscape is even more treacherous. Konstan Kinsin articulates this better than I can, as evidenced by the following extract from his article:
“
This is the bad news for Australia: it appears to have been infected with the same mind virus as the rest of the Anglosphere.
The symptoms are all too familiar. Identity politics fuelled by the false teaching of history. Political polarisation. Two-tier policing with anti-lockdown protests brutally suppressed, followed by the police standing by as crowds chant “Gas the Jews” outside Sydney Opera House due to fears of upsetting “social cohesion”.
The number of children being treated for gender dysphoria at Victoria’s Royal Children’s Hospital’s gender clinic has increased by over 1,000% in less than a decade.
Some journalists at the ABC, avoid revealing their nuanced political views to colleagues for fear of appearing insufficiently woke. Corporations jump on every progressive cause with enthusiasm.
Activists want to cancel Australia Day: instead of being a day of national unity, they want to turn it into one of shame and self-flagellation.
On cultural issues too, while apathy is how woke activists are able to continue hollowing out the country’s institutions, when forced to step away from the barbie and vote in the Aboriginal Voice Referendum last year, ordinary Australians made their feelings clear. Fronted by the courageous Jacinta Price, the “No” campaign overturned a one-sided onslaught from the country’s media, corporate and political elite, with 60% voting against embedding identity politics in the Constitution.
When I came to Britain in the mid-1990s, the British public were entirely unconcerned about immigration, with just 3% describing it as a major issue in the year I came. Back in the early 1990s, net migration was running at about 54,000 people. This was followed almost immediately by the hugely popular election of Tony Blair who abandoned all caution with Britain welcoming more people during his premiership than had come between the Battle of Hastings in 1066 and 1950. The abovementioned David Cameron, his Conservative successor, and his innumerable replacements, failed to stem the tide. Despite the popular uprising that we call Brexit, the latest net migration figures up to June 2023 were 672,000.
This is the great paradox of the woke takeover of any society. “Why are you being a divisive culture warrior?” they’ll scream at you as they take the foundations of your society apart, brick by brick. It is difficult to oppose robustly until the majority of people notice the problem. By which point it may be too late. Getting ordinary Australians to recognise the threat before the dangerous threshold is reached is the big challenge for the country’s sensible elite. Whether they can succeed remains to be seen.
“
The far left's influence on Australia's economic policies isn't just academic - it's making you poorer. While Australia prides itself on being a "multicultural centre of the world" and a haven for refugees, the reality is that housing costs for citizens are skyrocketing.
Take the Australia Day debate. Changing the date might sound noble, but it's pushing race to the forefront of everyone's mind. The media's not helping, turning every issue into an identity politics showdown. Disagree with a law? You're labelled a racist before you can blink.
This environment is killing rational conversation. It's become nearly impossible to reach a mutual agreement when everyone's on edge, ready to throw accusations.
Let's be clear: I'm not denying the complex systemic issues facing First Nations people in Australia. They exist, and they're significant. But does every single policy, every change, need to be viewed through this narrow lens? It's limiting our ability to address issues holistically.
As this woke ideology seeps into government institutions, it's creating a regulatory nightmare. Companies are struggling with compliance, forced to add headcount just to manage the ever-increasing red tape.
The government's churned out so many laws they can't keep up with their own paperwork. The backlog of approvals and applications is massive, strangling new projects and economic growth.
The result? Skyrocketing construction costs and endless delays. Big builders are struggling to stay afloat, which means even fewer houses are being built. It's a perfect storm for anyone trying to enter the housing market.
But here's the irony - all this regulation that's supposed to decrease the power of large companies? It's doing the opposite. Small companies can't handle the regulatory overhead, so they're going bust or getting bought out by the big players. The social justice warriors are accidentally empowering the very entities they're trying to constrain.
So, while everyone's busy signalling their virtue and patting themselves on the back for being progressive, the average Aussie is getting squeezed. It's time for a reality check, mates. This isn't progress - it's economic quicksand with a side of misguided idealism.
The erosion of our core industries, particularly mining, is a reality we can no longer ignore.
Recent market reactions serve as a sobering wake-up call to Australians who've long basked in the nation's wealth, built on the back of low-cost iron ore and coal exports. The collapse of nickel and lithium prices is a harsh reminder of our country's economic vulnerabilities.
In Western Australia alone, the fallout has been severe. We've witnessed Nickel West shut down, laying off 3,000 staff. Other companies including Core Lithium, PanRes, Wyloo Metals, First Quantum Minerals have shuttered their operations, leaving thousands without jobs.
Meanwhile, interest groups continue to push for higher pay, reduced work hours, increased flexibility, more mental health days, and stronger guarantees of permanent employment. While these demands may seem reasonable on the surface, they're eroding Australia's global competitiveness in the resources sector.
The mining industry and Environmental, Social, and Governance (ESG) campaigns have pushed into government policy, resulting in increased coal royalties and the premature shutdown of coal projects. It's now an arduous 7-10 year process just to secure approvals for a new mining project.
While these initiatives might make some feel righteous about "making big industry pay," the reality hit home when consumers faced the music of increased electricity costs. Energy prices have surged by 25% in Queensland and New South Wales, exposing the short-sightedness of these policies.
The solution, the government sends you $400 credit for your energy bill. Sounds great right?
No, where do you think this money comes from?
The government doesnt just ‘have’ this money, they literally print it. Adding to the money supply, which increases inflation. IE increases your HECs repayment which is indexed on the inflation rate, it also makes your groceries more expensive as Coles and Woolies increase their prices with inflation.
Labour pressures and new regulations, like the safeguard mechanism taxing our largest carbon emitters, have rendered our once-competitive assets unattractive on a global scale. Take BHP's Olympic Dam – it's now a high-cost operation forced to be "hyper-productive" just to stay afloat.
Let's be clear: government subsidies aren't the answer. The key is boosting productivity. Yet, the government's actions are completely backwards – enabling lawfare against new resource projects, stripping BHP of labour hire flexibilities, and re-empowering unions. These measures are choking the very industries that have long been our economic lifeline.
For Australia to maintain its prosperity, our core export markets need to grow, not shrink. The current trajectory is alarming, to say the least.
So, how does this affect Gen-Z? This brings me to the shift in my perspective:
AI Won't Replace You, But the Philippines Might:
Dont work from home. If your company has an office, go to the office. Remote work is a double-edged sword, and you're on the wrong end. While you're lounging in your PJs watching netflix, companies are eyeing talent from Indonesia, Pakistan, Malaysia, and the Philippines. These folks can match your hours at a fraction of the cost.
Here's a mind-bender: the top 1% in Indonesia is a whopping 27 million people. That's a talent pool deep that wants aussie dollars. These workers are hungry, skilled, and ready to eat your lunch. You'll begin to see a major uptake of companies outsourcing their teams to these nations instead of dealing with unproductive employees who complain about workloads, demand higher pay and have too much anxiety to come to work.
Don't buy it? Fine. Go online and hire one of these freelancers for your next project. The results will keep you up at night.
Remember, it's a hell of a lot harder to fire someone they know. So make yourself known, dammit.
Buy Property with Your Family:
Unless you've got parents who can gift you a house (in which case, why are you even reading this?), listen up. Team up with your family to buy property. It's not just an option; it's your only lifeline to owning a decent house that isn't in the middle of nowhere.
Brace yourself: your dreams of living in your childhood neighborhood? Shatter them now. You're looking at longer commutes and areas you've probably never considered. Start this process yesterday, because 30 years of debt isn't a joke.
Milk your parents' borrowing capacity for all it's worth. Play the guilt card if you have to – "Help me or watch me move to Woop Woop." Get creative.
A strategy that you should start taking more seriously is convincing your mates to all move further away where the land is cheaper. Imagine your three best friends living in the same suburb, where you can share the kids, enjoy family holidays together and actually have a tribe of people who are a supportive network.
Don't let the haters get to you when they sneer about your "rich parents." Wealth is built on exploiting every advantage you've got. So exploit away, and don't apologise for it.
The earlier you jump in, the better. Split between four people, even a hefty mortgage becomes manageable. We're talking $100-300 a week each. That's doable, even on a crap salary.
I'm Not That Bullish on Australia:
Let's be real: the long-term prospects for young Aussies are looking grim. House prices aren't just rising; they're exploding. With interest rates at a record high of 5.5%, only top-end borrowers can snag a loan. We're facing record-low rental availability, and houses are vanishing from the market faster than you can say "avocado toast."
Now, imagine the chaos when interest rates eventually drop. A whole new segment of the economy will suddenly be able to borrow, sending prices skyrocketing to unprecedented heights. I've done a deep dive on this in my podcast - check it out here:
You're facing a tough choice:
Re-align your expectations and move further out. It might mean a longer commute but think about the trade-offs: more income, actual holidays, less debt, and broader financial options.
Use Mum and Dad to buy in an area close-ish to the city. Do it soon.
Or, commit to a massive mortgage and spend the next 30 years working it off. It's a long haul, but for some, it might be worth it.
Here's the kicker: if more mining companies go bust and funding for new projects continues to dry up, we might see large miners taking their capital elsewhere. When that happens, Australia could start to resemble less prosperous parts of the US and UK. We're talking about increased gang violence, a growing homeless problem, and shrinking opportunities.
In this scenario, governments will likely be forced to raise income and company taxes just to stay afloat and manage mounting debts.
It's not all doom and gloom, but it's crucial to face these realities head-on. The Australia of tomorrow might look very different from the "lucky country" we've known. It's time to get smart, plan ahead, and make some tough decisions about your future in this changing landscape.
Where to Move?
Let's face it, picking a new country isn't like choosing a holiday destination. Europe? It's a no-go. The US? Good luck getting in. The UK? Forget about it.
Sure, places like Dubai, Saudi Arabia, and Abu Dhabi are options - if you're swimming in cash. But if you're reading this, chances are you're not.
The key is finding spots with robust legal systems. You don't want to lose your shirt to corruption. That's the rub with countries like Indonesia and Thailand. Here's a pro tip: register a business in Singapore and then live in Thailand or Indonesia. You'll save a bundle and keep your assets safe from sticky fingers.
Mexico's an interesting prospect. Yeah, it's got cartel violence issues, but the legal system's not terrible. The real kicker? As US-China tensions ramp up, Mexico's set to become America's new best friend. We're talking billions of US dollars flooding in, potentially driving economic growth, beefing up the legal system, and maybe - just maybe - squashing some of that corruption.
Then there's Argentina. It's sitting on a goldmine of natural resources and has geography that keeps costs down. The new president, Milei, represents a seismic shift from decades of socialist rule. Changes won't happen overnight, but keep your eyes peeled. This could be a dark horse.
On Dating:
Alright, fellas, listen up. If you stumble across a partner who isn't waving the feminist flag or preaching from the left, don't fuck it up. These unicorns are rare, so treat them like the last Tim Tam in the packet.
The sad truth is, well-adjusted young people – regardless of gender – are becoming as rare as affordable housing in Sydney. Most are either hardcore socialists or subconsciously blame you for their problems because of what's between your legs. By 30, the good ones will be as gone as the Great Barrier Reef.
End
Look, I hope this reality check hits you like a freight train. Seeing the world as it is, not as we wish it to be. Resetting expectations is a bitch, but it's better to do it now than when you're 40 and wondering where it all went wrong. Time to face the music and dance, mates. It's a tough world out there, but with the right mindset, you might just make it through with your sanity (and maybe even a property title) intact.