Young Jobless 'Single Biggest Challenge of Our Age': Trader
The increasingly difficult economic environment for young people is the biggest challenge developed economies face today, a senior trader told CNBC.com.
The riots seen in London over the summer and the recent protests at Wall Street were less about looting and youthful bad behaviour and more about a deeper crisis of opportunities and economic inequality among the under-25's, Charles Campbell, senior sales trader at Miller Tabak said.
"If we have an increasingly difficult economic environment then self-esteem becomes a big issue and is a better predictor of academic performance than IQ.
Governments need to incentivise on a long term basis so the economic environment is as palatable and friendly for new and existing businesses as possible," Campbell said.
Campbell noted that European nations which currently have high debt levels had correlating high levels of youth unemployment in the 15 to 24 age bracket including Spain at 45.7 percent, Greece at 38.5 percent and Ireland with a rate of 26.9 percent.
There are plans to stage a similar protest this weekend in London to the one currently taking place in Wall Street against what is seen by organisers as corporate greed at taxpayer's expense.
Campbell said that with a shrinking public sector in many developed countries as a result of austerity measures the private sector would have to step up and provide many of these lost jobs.
"Government's need to encourage businesses to spend money and have people manufacturing, selling and offering a service We have not done this here in the US and in many other developed countries," he said.
Campbell agreed that with developed economies experiencing prolonged periods of low or stagnant growth tacking this issue would be important.
A number of analysts have argued that this will propel a shift in power and economic strength from the West to the East, but Campbell said this could be a positive move for the global economy.
"I see a gradual shift towards the East which will have greater influence and a greater voice in world affairs but it won't dominate the global economy.
This will be a positive move for Western economies in terms of world trade where there will be more co-operation and more competition, leading theoretically to more goods at lower prices," Campbell said.