I'm with both of you on this, I see the students being interviewed on TV and just think they are that dumb they should not even be at uni.
Let get it right once and for all.
YOU DO NOT PAY UP FRONT
YOU ONLY PAY AT TIMES WHEN YOU EARN OVER £21K
YOU PAY FOR A MAXIMUM 30 YEARS
Wow! 21K is such a huge salary that 30K of debt should be no problem and 30 years is no time at all - it's hardly the best part of a lifetime, is it?
In fact, the more debt the better - after all, our boom years of sustained economic growth before the credit crunch were built on ever increasing amounts of personal debt and it's not like it contributed towards our economic downfall, is it? :shrug:
The truth is we are in the mire. Everyone seems to think that everyone else should bear the brunt, be it students, the elderly, sick, disabled or unemployed, but never the rich, of course. I'm glad so many here take delight in seeing other people's pips squeak and I hope you have very well paid secure jobs because otherwise, like the rest of us, you haven't got much of a future. I'm not too bothered about myself to be honest, I'm old and ill and have already had the best of my life by far. However, I do feel for the youth of today, my daughter included, who through no fault of their own find their futures have been mortgaged by previous generations.
Years before the credit crunch I said it would all end in tears, because I could see that the "growth" in our economy was fuelled by consumer spending made possible by increasingly unsustainable personal borrowing.
I will tell you now, the present Government have got it wrong as well. There are two sides of the equation in reducing the deficit. Spending cuts, yes, but also income through taxation. For better or worse, a huge proportion of our economy is driven by the public sector. Cut it too deeply and you risk destabilizing the economy still further, stifling growth at best and very likely plunging us back into recession (current weak growth hardly qualifies us as having moved out of recession). The result will be an unexpected drop in revenue for the Treasury which will no doubt precipitate yet more spending cuts, perpetuating a vicious circle.
The long term answer is to encourage and stimulate increased productivity in the private sector, but that requires a buoyant economy generating confidence and maintaining home market demand. Not all increased productivity can be channelled through exports, particularly when there is a global economic crisis. There could even be an argument for a temporary increase in spending to generate the growth we need. That aside, it just does not make sense to attempt to pay off the equivalent of a lifetime mortgage in five years. Repayment needs to be planned and structured, not undertaken in reckless panic in a way that will further harm the economy. Following the recent success story of China, it might even be time to look at moving from a free market economy towards a planned economy, or at least more of a mixed economy than we have at present.
But that's not going to happen. Rightly or wrongly the Government has set its course for the next five years. I hope time proves them to be right and me to be wrong. I fear that by 2015 we will be in economic meltdown with the debt still much higher than anticipated due to falling revenue and an ever diminishing chance of repaying it. Taxes of all types will be higher and there will be much more unemployment, poverty and social unrest. The vast majority of people who aren't actually below the poverty line will have a much reduced standard of living. The line for the Prime Minister's Happiness Index (if it hasn't fallen victim to yet more cuts) will have crashed through the floor.
Remember this in five year's time and see if I'm not right.
I do not mean these to be political points, merely economic ones.
