The BBC were blasted by Tory Ian Duncan Smith for their insistence that falling unemployment figures were bad for the economy in some mysterious way….now the Empire is striking back.
The release of the latest borrowing figures ironically (considering they have been calling for more borrowing) led to the BBC having the opportunity to launch a counter attack on the Tories. They also constantly slip in Flander’s question demanding to know why employment is going up in a recession whenever possible.
One of the factors in unemployment falling was that of some people becoming self employed and setting up their own businesses.
Steven Nolan steps up to the plate and set out to do battle with that assertion…that self employment is a proper job, or possible to do.
Nolan brought on a 20 year old called Matt (36 mins in) who has been unemployed for a year and says it is impossible for him to get a job in his area….he could of course just get on his bike as Chinese, Polish and African workers have done and moved to get work…half way around the world in many cases….I know that where I live foreign workers are working a 4 day rota of 12 hours shifts on a farm and then 4 days in a factory…so not just one job but two…and yet the Brits can’t get a job!
Listening to him you get the impression there might be more to ‘Matt’ than meets the eye…he seems to have the patter off, well, pat…and glibly cranks out Labour Party or even Occupy rhetoric….he is almost cast for the part of Labour activist calling a phone in…’authentic working class accent, articulate, unemployed for a long time, ‘can’t afford’ to go to university, angry at bankers and the Tories’. Perfect….all ‘designed’ to generate as much sympathy as possible?
I’m sure he’s entirely authentic. I was wrong………
UPDATE: Thanks to Beeboidal in the comments for digging out this video of young Matt…apparently a member of the Socialist Party….‘A victim of capitalism’s failure Socialist Party member. Hull KR Green Bay and LFC fan’
Funny how the BBC kept that quiet!
He says it is impossible to get a job, there are businesses collapsing left right and centre….he can’t risk coming out of university with 50-60 grand debt and no job…it’s like a mortgage…can’t risk that without a job.
He goes on…the real issue, the core is the bankers and speculators who made this crisis and aren’t being made to pay for it….their money should be taken to be invested in youth jobs instead of hoarding it for the rich….we have a lost generation and a government of rich people who don’t know what it’s like to be poor.
Nolan agrees….no one should have to have that much debt and no job…and that banks ‘hoarding’ money is wrong.
Nolan’s attitude is a big problem…it is an attitude prevalent throughout the BBC…and one resulting from journalistic laziness and one might suspect preconceived notions.
The idea that Student debt is a problem is an astonishingly common assertion both by students and BBC presenters.
It is also completely wrong.
The BBC website explains it quite clearly should anyone (including BBC staff) be bothered to read it……under the new system you in fact will pay less than under the old one…not only that but if you earn under £21,000, or are not earning at all, you pay nothing back….not only that but the amount paid back is not dependent on how much you borrow…..you pay back an amount dependent on your earnings alone…..so even with £60,000 debt you will pay no more than someone with a £30,000 debt….and after 30 years all debt is written off.
It’s a bargain and simple…anyone who doesn’t understand the system perhaps should not be considering going to university…or preaching nonsense on the radio.
Victoria Derbyshire practically joined up with the student protestors last year in their protest against tuition fees….but made only a very weak and short explanation of the fee system to the students.
The old lefty of ‘Wake Up To Money’ (Andrew Verity I believe) last Thursday argued against the tuition fees and insisted they were an albatross around young people’s necks….Martin Lewis, financial expert, came onto Shelagh Fogarty’s show and did battle with him as he repeated his mantra of doom on that programme…unfortunately just timed out on the useless BBC iPlayer.
So student fees aren’t really a problem…accept for the country that has to pay off all the ones that aren’t repaid eventually.
As for Nolan agreeing that banks ‘hoard’ money…do they? What was the problem with banks? It was reckless lending and not having sufficient capital in reserve to back that lending up. Now they are required by the regulators to hold sufficient reserves and control their lending.
Today on ‘Wake Up To Money’ (27 minutes) we had a KPMG representative on to talk about the banks…their profits being down 17% on last year.
He stated that the reasons for lower profits are…too tight a regulatory environment…at the wrong time…he said the regulations to curb the credit boom should have been put in place in 2005/06 (note sharp intake of BBC breath…2005 was Team GB time! Embarrassing!) and now is the wrong time to tighten credit and limit lending. (note Flander’s 2005 assessment of the Brown policies Testing the Miracle)
The banks are required now to hold large amounts of capital, which comes from the funds that normally would be used for lending to businesses and for mortgages.
You can’t have it both ways…you can have Gordon Brown’s high risk based financial system or you can have a careful, safe and steady, risk free lending environment which limits growth at a sustainable level.
Which one? The BBC have plumped for Labour’s choice….that of Brown’s protégé, Ed Balls, who is going for the spend, spend, spend option.
Guess they never learn….Evan Davis insists that ‘Austerity is killing the patient’….clever boy that.