Thailand's middle class debt problem

[fedssocr]

from CNA

 

[macaroni21]

Just watched it, and I'd say it was a pretty good documentary trying to get to grips with what is surely a complicated problem with many moving parts. What struck me was the rather shallow consumerism that has come to afflict younger Thai adults, perhaps fuelled by social media and its depictions of lifestyles. The other thing is how Thais have to pay premium prices for even basic things like transport and education, mostly because the State does not provide. Too many have to send their kids to private schools (public schools have a quality problem?); too many are buying cars - one man featured had both a bike and a car (couldn't he sell one?) - because public transport is so bad.

Towards the end of the documentary more warning signals were sent. Job creation will become a tougher and tougher problem, especially when the Thai education system is not up to scratch. With a lower birth rate and possibly only one-child families becoming the norm in the future, young people today cannot hope to depend on their children for their old age like in generations past; if they don't start saving now, it will be an even bigger disaster in a generation's time.

[Zipper]

Thank-you for posting this. Very insightful. 

[Keithambrose]

1 hour ago, Zipper said:

Thank-you for posting this. Very insightful. 

I really don't like the word 'insightful '. I'm too old fashioned!

[fedssocr]

2 hours ago, macaroni21 said:

Just watched it, and I'd say it was a pretty good documentary trying to get to grips with what is surely a complicated problem with many moving parts. What struck me was the rather shallow consumerism that has come to afflict younger Thai adults, perhaps fuelled by social media and its depictions of lifestyles. The other thing is how Thais have to pay premium prices for even basic things like transport and education, mostly because the State does not provide. Too many have to send their kids to private schools (public schools have a quality problem?); too many are buying cars - one man featured had both a bike and a car (couldn't he sell one?) - because public transport is so bad.

Towards the end of the documentary more warning signals were sent. Job creation will become a tougher and tougher problem, especially when the Thai education system is not up to scratch. With a lower birth rate and possibly only one-child families becoming the norm in the future, young people today cannot hope to depend on their children for their old age like in generations past; if they don't start saving now, it will be an even bigger disaster in a generation's time.

It's problem taking hold in many countries. There's a chart early on that shows SK's debt issues are even worse. And of course they also have an even bigger birthrate issue. 

We certainly live in interesting times.

[PeterRS2]

Thanks to @fedssocr for posting that very interesting video. Middle class debt is clearly pretty much out of control with little financial planning and virtually no education on its importance. I believe it’s a problem that has been developing since the country started to grow again after the Asian Economic crisis in July 1997.

I knew a young member of the emerging middle class for almost a decade from 2001. He had a good job in a reasonably well paid genuine antique business. Yet over lunch one day he shocked me by saying he was maxed out on credit and store cards - of which he had 20! He had had to move to a different address and I think was using a fake ID. I knew he was paid his salary in cash. I told him he had no alternative other than to go to the banks, tell them of his financial position and work out a repayment plan. At least this could stop the interest being increased every month. I even offered to go with him. I added he’d have a tough 2 or 3 years ahead of him, but he would then be free of much of his debt.

His response on this and other occasions was that he’d manage. He would not accept my help. What eventually happened I do not know but I think he eventually committed suicide. Very sad!

[vinapu]

On 3/8/2025 at 11:37 AM, fedssocr said:

It's problem taking hold in many countries.

indeed  middle class is in trouble everywhere owing it to disappearance of good steady jobs and casualization of  many positions. It seems that most of the cream is going to top few %  which sooner or later will lead to serious disturbances. Behavior of US voters seems to first, for now still  weak signal.