This item on Naked Capitalism today raises the interesting
question of how in the USA
the nature of student debt embroils the older generation as well as the younger
students. Given the willingness of the UK to import the battier ideas from the USA this one
should be coming to us soon.
When people become involved in credit and debt and it goes
wrong then almost inevitably trouble occurs, family or no family. The fact that is might be family and
therefore some sort of higher obligation could be assumed may only make it worse.
The potential complications of all this could be
hideous. Imagine a family where the
parents have assumed debt liability for one child only eventually when probate
occurs any other children or family losing any possible inheritance. If this includes family who are carers this
will add to the flames.
We are already stumbling into a situation where a lot of
younger people are looking at an older generation who have done well out of the
rampant inflation of the late 20th Century and the easy lending on
property, never mind those who have gained decent pensions.
They are looking at the level of the debts they incurred for
study and perhaps being gulled into taking on extra consumer debt as part of
the bad boom created by the older generation for their own benefit. On top of that many now have little financial
future as the post boom squeeze continues and the jobs market goes sour.
John Mortimer, the late writer, began his career as a
barrister specializing in probate and related cases. It was his view that when it came to wills
and inheritance and family money this was the boundary where civilization ended
and the survival of the fittest began.
This weekend we are to due to see family. The traditional game of “snap” we play could
begin to get very rough, especially if they realise I am playing with a pack of
marked cards inherited from a thoughtful uncle.
I'm not convinced about funding any but the brightest student in the first place. A trade such as plumbing could be a better bet for most.
ReplyDeleteI suppose those students who aren't very bright could be steered towards politics.