The end of aspiration

In Quillette, Joel Kotkin writes about the end of aspiration.

...So why has home ownership fallen? Largely due to regulations that have placed new affordable housing beyond the reach of younger Australians, something we also see in major cities in Great Britain, the United States, and Canada. In all these places, the main culprit has been “smart growth,” a notion that encourages the reluctant to move closer to dense urban cores and give up the dream of owning a home.

...This receding horizon is generating an ever more feudalistic mentality among the young—those with wealthy parents are far luckier to own a house and enter what one writer calls “the funnel of privilege.” In America—like Australia, a country whose mythology disdains the power of inherited wealth—millennials are increasingly counting on inheritance for their retirement at a rate three times that of the boomers. Among the youngest cohort, those aged 18 to 22, over 60 percent see inheritance as their primary source of wealth as they age.

...Ultimately, this poses a threat to the powerful democratic ideal that arose in the second half of the last century. Instead of spreading the wealth, many of the leading Silicon Valley oligarchs’ solution to marginalization is to have the state provide housing subsidies as well as unconditional cash stipends to keep the peasants from rising against their betters.

The oligarchs understandably do not want a populist rebellion from below; the Trump victory and Brexit were demonstrations of that threat. But nor do they worry all that much about being burdened by a call for societal generosity. Such people tend to be skilled at tax avoidance, so they won’t be picking up the bill. Instead, as occurred in the Middle Ages, the taxes will be paid by the remaining middle- and working-class residents, while the regulatory clerisy, both in government and the universities, enjoy cushy pensions and other protections unavailable to the masses.

The erosion of upward mobility threatens a deepening conflict between the middle orders and the elites. It also threatens the future of liberal democracy. A strong landowning middle order has been essential in democracies from ancient Athens and the Roman and Dutch Republics to contemporary Europe, North America, and Australia. Now with fewer owning land, and many without even a reasonable expectation of acquiring it, we may be entering an era portrayed as progressive and multicultural but that will be ever more feudal in its economic and social form.

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