Debate Magazine

Economic Myths: "those Who Have Worked Hard All Their Lives to Buy a Home"

Posted on the 17 November 2017 by Markwadsworth @Mark_Wadsworth

Sayid David was doing a fine job of playing both ends against the middle, as reported in The Daily Mail:
Mr Javid, a frequent critic of so-called Nimbys, said it was time to deliver 'moral justice' for the young – and warned older people they would not be permitted to stand in the way of a massive house building drive.
"What we need now is a giant leap … I still hear from those who say that there isn't a problem with housing... that affordability is only a problem for millennials that spend too much on nights out and smashed avocados.
"It's nonsense. The people who tell me this – usually baby boomers who have long-since paid off their own mortgage – they are living in a different world. They're not facing up to the reality of modern daily life and have no understanding of the modern market."

He's trying to claw back a few of the under-30 votes for the Tories with a couple of well-aimed blows at the NIMBYs and Boomers while ensuring that his party's major donors find it even easier to get planning permission.
He must know that you can give the land bankers as much planning permission as you like; it will not change their profit maximising level of output one iota - why would it? Even if they did increase output, it would only have a very short term and marginal downwards effect on prices.
But hey, he's a politician.
Here's the Economic Myth:
Lib Dem housing spokesman Wera Hobhouse last night criticised Mr Javid for his attack on baby boomers. She said: "This kind of language is divisive and unnecessarily sets one generation against another. It is patronising to tell those who have worked hard all their lives to buy a home and raise their children that they don't understand the housing market."
This "worked hard all your life" to buy a house is complete and utter bollocks (except for the very few people who bought something that was far too expensive). From the 1950s to the late 1990s, you could (if you wanted) have paid off the mortgage in ten or fifteen years and still been paying less per month than you would have been paying in rent for the same home. All these Homeys have paid considerably less than tenants have.
For sure, there were a couple of nasty years in the mid-1970s when interest rates were very high; but inflation was even higher, so in exchange for two or three years of pain you effectively had half your mortgage eroded by inflation. My mom admitted to me that they paid off the rest of the mortgage they took out in 1964 with petty cash sometime in the mid-1970s. I bought a nice house in 1998 with a 20% deposit and paid off the mortgage in ten years (because that was the longest fixed rate period on offer).
There were another couple of fairly nasty years in the early 1990s as well, but so what, it was still cheaper than renting for nine out of ten mortgage borrowers. We note that these two high interest rate periods followed a house price bust; they took a different approach after the last one and pushed interest rates to zero instead.
And yes, some people with mortgages lose their jobs and struggle, but that is irrelevant, they'd have struggled to pay the rent as well. It's your "Losing your job" bit that causes the pain, not the fact that you chose to save money by buying not renting.
But hey, she's a politician as well.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Refreshing Flower Vases

    Refreshing Flower Vases

    The sun is bright. Fresh produce is in abundance. Vivid flowers are dancing in wind. I can’t help sharing refreshing flower vases that are exotic and quite... Read more

    14 hours, 11 minutes ago by   Vsudarsan
    HOME, INTERIOR DESIGN
  • Concert Review: They See Perpetual Change

    Concert Review: They Perpetual Change

    Yes celebrate fifty years of music on Staten Island. by Paul J. Pelkonen The men of Yes (Steve Howe, Geoff Downes, John Davison, Jay Schellen, Alan White... Read more

    14 hours, 36 minutes ago by   Superconductor
    CULTURE, THEATRE & OPERA
  • 5 Pieces of Essential Event Advice

    Pieces Essential Event Advice

    Each year, event and meeting professionals gather at conferences where speakers discuss trends, education and ideas for inspired event management. Attendees at ... Read more

    15 hours, 52 minutes ago by   Marketingtango
    BUSINESS, MARKETING & ADVERTISING
  • Paula Abdul – Tour Celebrating 30 Years As A Pop And Dance Icon

    Paula Abdul Tour Celebrating Years Dance Icon

    Grammy Award-winning pop legend and dance superstar Paula Abdul has announced a new North American tour this fall – STRAIGHT UP PAULA! – her first solo outing i... Read more

    15 hours, 56 minutes ago by   A Beauty Feature
    FASHION, HAIR & BEAUTY, LIFESTYLE
  • Food Review: Julie’s Kopitiam, Shawlands, Glasgow

    Food Review: Julie’s Kopitiam, Shawlands, Glasgow

    53 total views, 53 views today Julie’s Kopitiam – finally! Eventually, we (or Mrs Foodie did at least!) make it to Julie’s Kopitiam. Read more

    The 17 July 2018 by   Emma
    DESTINATIONS, DINING OUT, FOOD & DRINK
  • Sedo Weekly Sales Led by BTCexchange.com

    Sedo released their weekly sales and BTCexchange.com led the way at $55,000. okdo.com was the second highest sale at 35,000 GBP ($45,906). 46 .com sales 24 cctl... Read more

    The 17 July 2018 by   Worldwide
    BUSINESS, TECH
  • River Town Saints at the 2018 Calgary Stampede – Nashville North

    River Town Saints 2018 Calgary Stampede Nashville North

    Ottawa, ON's River Town Saints made their way to Calgary to play at Nashville North during the 2018 Stampede, and the five boys from Ontario went all in! One... Read more

    The 17 July 2018 by   Phjoshua
    LIFESTYLE, SELF EXPRESSION

Magazine