‘Intergenerational tragedy’: Will the kids be all right?

This year’s Intergenerational Report had some sobering news for Australians. The country will become older, more indebted and grow slower over the coming decades.

It prompted former Treasury secretary Ken Henry to warn of an unfolding “intergenerational tragedy”.

When the report was released in August, interest rates were on hold. But this month, RBA governor Michele Bullock, worried that inflation isn’t under control, lifted the cash rate to 4.35 per cent.

Higher rates have brought forward some of the pain and amplified concerns raised by Henry that the younger generation is bearing most of the burden.

This week on The Fin podcast, economics editor John Kehoe on why young Australians are at risk of a poorer future and what can be done to lighten their load.

Explore the big issues in business, markets and politics with the journalists who know the inside story. New episodes of The Fin are published every Thursday.