Boomers got the growth, Millennials inherited the bill

It's a week that promises to rewrite the rules and reframe the rhetoric on what has become the economic debate du jour in Australia. 

When Treasurer Jim Chalmers releases the 2026 budget tomorrow, the conversation around improving the economic prosperity and equality of Australians will change. It already has.

But regardless of whether you think the rumoured measures are the right or wrong move, go too far or don't go far enough, there are some stark realities around which any good-faith debate needs to be had. 

In a post on LinkedIn last week, Chris Bradley, Senior Partner at McKinsey, shared some data that shows how the lived economic experience of younger Australian has been demonstrably worse than it has for older generations.

"I hate to say it, but the young'uns are probably right."

Bradley shared a chart that shows Australians born in 1995 face a much more challenging economic climate than those of previous generations, based on a number of key economic metrics. 

Not only that, but these metrics have been steadily eroded over multiple generations. This isn't a new phenomenon. 

The fact of the matter is that those born around 1955 (i.e. those now aged around 70) have enjoyed a better lived economic experience, based on measures like per capita GDP growth, tax-to-GDP ratio, average productivity growth and house prices as a percentage of disposable income.

As a generation, those now aged around 70 enjoyed more growth and productivity, cheaper houses and lower overall taxes throughout their working lives than any generation since. 

Given that the cohort born around 1995 have only been contributors to the workforce for around a decade, the loss of productivity cannot be pinned at their feet. 

This is the economy they've inherited from older generations. Any perceived laziness or entitlement amongst younger generations is not only eye-rollingly trite, it's a complete misnomer. 

As Bradley writes in the post, "my more boomerish instinct is to dismiss this as a problem of unrealistic expectations or to blame the education system for instilling doom." 

"But the reality is, the lived economic experience of someone who just turned 30 in Australia is really different than mine. I am a smidge over 50--the middle column. A 30 year old today has experienced less growth, hardly any productivity improvement, much more expensive housing, a bigger tax bill, and a much bigger government."

He also references research that only 1 in 5 Australians believe the next generation will be better off than the last. 

Regardless of what is announced in the budget tomorrow, something needs to be done to address the slide in living standards for Australians. 

As Bradley concludes, there's plenty that needs to be done to address what has become a national crisis of economic optimism.  

"No wonder the buy in to the logic of progress is faltering. WE HAVE WORK TO DO. Real hope needs to be earned!"