Published: 27th May 2011

I am not an economist. I am not an expert in many things if indeed anything. The benefit I think is that I start to ask simple questions. So, today’s simple question is ‘is the government tackling the nation’s debt problem or transferring it to everyone else?’ Here is my simple theory: Passing debt to individuals: the big headline is of course the rise in tuition fees: £9k a year will leave the traditional graduate £27k, but with other costs the average debt is surely going to be nearer £40k. The government’s argument is these graduates will earn more over their lifetime – it pays to get into debt in this case: nice argument – entirely contradictory to their approach to the national debt however. Government will have to hope people don’t take the ‘coalition approach’ to managing household debt as people will stop spending entirely to pay off the … (To read the full article, subscribe below)