Thursday, 2 January 2014

So Much For Enterprise and Ambition Then

So then the philosophy of this government is, if you work hard at school you can gain a place at university where you can pay £9000 per year for 9 - 15 hours per week tuition.  Once you graduate (with debts between £30 - 45,000) this will enable you to get a job (or probably not) with a salary barely above minimum wage, out of which you must:

·         Feed and clothe yourself (although your parents will probably have to do that until you’re at least 25;

·         House yourself (parents might do that for nothing until they are in their dotage).  If your parents are not completely without resources by now they may be able to give you the money for the 5% deposit on a house enabling you to try to buy a house with the government’s ‘Help To Buy Scheme’ (HTBS).; and if you have been particularly fortunate and your job pays significantly above minimum wage you might be able to afford the repayments in the quarter-million pound loan you have had to take out.
The HTBS is a government initiative designed to provide profits to builders that make large donations to party funds.  It has the unique advantages of pushing up the prices of houses making it look as if prosperity has returned to this bankrupt country so that you will be persuaded to vote for them at the next election.  Of course there is minor disadvantage that when interest rates start to rise, which they will inevitably have to, even a very tiny rise will have enormous consequences on mortgage borrowers as the size of their loans are so large.  This of course has the effect that many will not be able to afford them and will have their houses repossessed, leaving them in a position where they have to return to live with Mum and Dad or rent a house from one of the ever burgeoning role private landlords costing as much or more as their previous mortgage with the help (if they can get it) of welfare payments.  Alternatively they could just go on the streets, many already choose this option.
However we should not forget that the banks (who made the unsustainable loan in the first place) will then own what used to be their house which they can then sell and make a profit from the process.  Does any of this seem familiar?

·         Oh yes you must not forget, you will need to start saving for a pension because by the time you need to retire you will need to be about 103 to be eligible for the State Pension even if your body gave up about 35 years earlier.

Well you shouldn’t feel too bad about it, you could always sit and read your degree certificate while you sit round a fire on a piece of waste ground somewhere and recall those halcyon days of academia.  Perhaps you could swap tales with those around who chose to take up law and burdened themselves with even greater debt by becoming criminal barristers or solicitors only to have their professions destroyed and handed to people who didn’t bother to go to university, and those whose small businesses were asset stripped by big firms prepared to do a sub-standard job for a pittance and who pay little more than the minimum wage to their employees.

You shouldn’t feel too down of course, out of every tale of woe there shines a little light.  There will be plenty of people to benefit from the wonderful policies of this government even when the economy goes tits up again as it inevitably will.  There are the millionaire politicians whose nests are well and truly lined the executives and shareholders of their party donors (such as big outsourcing companies and builders) and we must remember the bankers.

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