Millennials having no stake in capitalism

millennials capitalism

Though I was no fan of Margaret Thatcher back in the 1980s, one thing she understood was that people needed to believe capitalism was THEIR system. So, she set out to give people a stake in the system. Today, in sharp contrast, millennials seem to have almost no stake whatsoever in capitalism. And guess where that leads? Yep, disaffection with the aforementioned capitalism.

Thatcher wanted to end the ‘mixed’ economy of post-war Britain. That’s where the state owned vast swathes of the economy including energy, telecoms, utilities and transport. She presented the sale of state assets as something liberating, a chance for the public to own a slice of the economy. Some people would have said that they already did through state ownership. But Thatcher wanted people to have shares – and believe in financial capitalism.

The Wider Share Ownership Council was set up to “create a nation of well-informed capitalists, enfranchised in the economic life of the country and supportive of a free-market system”. It didn’t matter that as industries were privatised, wealth inequality actually grew despite the increasing number of shareholders. And many held the shares more like Premium Bonds than equities. They didn’t go on to develop sophisticated stock market portfolios as Thatcher might have hoped. But many Britons bought into the myth of ‘popular capitalism’. And I suppose that’s all that mattered.

I was a financial journalist in the 1990s and people in the City privately mocked or pitied those members of the public who did try to play the markets. Lambs to the slaughter was the usual analogy. At the end of the so-called ‘dot-com boom’ around 2001, there was a 90% club of shareholders who had lost that percentage on the average share in their portfolio. Same thing happened in 2007/8. Private investors got fried every time. Institutional investors bailed out way before.

Millennials and post-millennials don’t tend to have share portfolios – not the ones I know anyway – and neither have they bought their own council house. Because those were sold decades ago in another of Thatcher’s popular capitalism moves. And many can’t afford or don’t want to take out a mortgage. Even if they tried, they’d probably be turned down. So no stake for millennials in the property or equity market.

And now, post-Covid, many millennials have a further reduced stake in capitalism on account of having no job. Young people who thought being a gym trainer or working in the ever expanding hospitality sector was a career for life have been cruelly disabused. Some have even resorted to back-breaking labour on farms to make ends meet.

And pity the poor ‘strategist’ or ‘creative’ – who now finds capitalism doesn’t need their strategic insight or creative flair. In recent years, I’ve met so many people claiming to be strategists that I call myself a ‘tactician’ with pride.

The dream, or nightmare, or myth of popular capitalism has definitely crashed and burned. There is no 1980s privatisation giveaway. There’s no keys to your own home. And now it’s a P45 and good luck for the future. So when I hear some people wondering why capitalism is in the dock – well ask yourself: what stake do millennials have in the system? And then the answer should be clear to you.

Weird birthday cards of the 1970s

1970s birthday card

I go into my parents’ attic occasionally and chance upon some of the very weird birthday cards from the 1970s that I got in my childhood. I have to say of all of them, this has to be the oddest of the lot. It was sent by my lovely Portuguese grandmother but definitely a different era. I mean, could you imagine a kid walking down the street dressed like that now? Ah – it was a different time!

Appearing on BBC Question Time in 1980

1980 television

In 1979, the BBC launched a new political discussion show called Question Time – presented by Sir Robin Day. Somehow, a friend of mine got tickets to be in the audience and so, aged 16, we went along to the studio. Robin Day was elsewhere that day and the programme was hosted by the veteran Canadian broadcaster Bob McKenzie.

At that time, I’d started to get involved in left-wing politics and had developed a curious and unconvincing cockney accent – ditching the cut-glass posh voice my mother had instilled in me. I also still had the Irish Republican convictions that my Irish Republican grandmother had indoctrinated me with from an early age. I later became a lot more nuanced on that issue.

During the show, I stuck my hand up and got to make a point about the vote being taken away from Irish citizens living in the United Kingdom. This was a typical piece of Margaret Thatcher spite aimed at Irish people.

Me on Question Time in 1980

The British Nationality Act (passed in 1981) was being discussed in parliament and she was clearly keen on trimming the rights of Irish citizens in the United Kingdom. Subsequent analysis has suggested she thought they all voted Labour and so needed to be disenfranchised. Being half-Irish – I was not impressed.

Anyway, with my newly found cockney accent, I made my contribution and was roundly put down by Bob McKenzie. Should mention that the poor man died a year later. I hope the stress caused by my angry teenage words didn’t contribute to his demise!