Feminism Feudalism anarchism Freedom of Information Functionalism Gender
Global Capitalism Globalisation Great Thinkers Habituation of the Nation Hellinistic Philosophy Historical Materialism
Human Freedom Human Rights Humanity Immorality Independent Thinking Industrial Revolution
Pedagogy of Revolution

Flow of Ideas: articles - Finance and Fear

A Capital Friendly Culture for Further EducationA Capital Friendly Culture for Further Education
Academy ChainsAcademy Chains
After the Hillcole GroupAfter the Hillcole Group
Against What We Are WorthAgainst What We Are Worth
Ambassadors of Capital in SchoolsAmbassadors of Capital in Schools
An Educational Mansion House for BusinessAn Educational Mansion House for Business
Apprenticeship and the Use-value Aspect of Labour PowerApprenticeship and the Use-value Aspect of Labour Power
Artistic OutlookArtistic Outlook
Ayers Rocked In His Own UniverseAyers Rocked In His Own Universe
B GenerationB Generation
Bourdieu on CapitalBourdieu on Capital
Bourdieu on Cultural CapitalBourdieu on Cultural Capital
Bourdieu on Social CapitalBourdieu on Social Capital
Brown PFI MonsterBrown PFI Monster
Business Sponsorship of SchoolsBusiness Sponsorship of Schools
Business Takeover of Further EducationBusiness Takeover of Further Education
Cambridge University OccupationCambridge University Occupation
Caught in the Storm of CapitalCaught in the Storm of Capital
Co-payment in Hospitals and SchoolsCo-payment in Hospitals and Schools
Cold Hands and Quarter MoonCold Hands and Quarter Moon
Communitarianism for SchoolsCommunitarianism for Schools
Compulsory Consumption and Uni-NannyCompulsory Consumption and Uni-Nanny
Conforming Schools Conforming KidsConforming Schools Conforming Kids
Copy/South DossierCopy/South Dossier
Creating MonstersCreating Monsters
Creeping Privatisation in Higher EducationCreeping Privatisation in Higher Education
Critical MassCritical Mass
Critical Pedagogy and CapitalismCritical Pedagogy and Capitalism
Critical Space in EducationCritical Space in Education
Delivering E-LearningDelivering E-Learning
Digital Rights ManagementDigital Rights Management
DistillationDistillation
Dorothy L. SayersDorothy L. Sayers
Douglas Kennedy: best-selling novelistDouglas Kennedy: best-selling novelist
E-learning for Free at the BBCE-learning for Free at the BBC
Edison Schools in the UKEdison Schools in the UK
Education and Inspections Bill (2006)Education and Inspections Bill (2006)
Education As Culture MachineEducation As Culture Machine
Education FireworksEducation Fireworks
Education for DebtEducation for Debt
Education IncorporatedEducation Incorporated
Education Markets and Missing ProductsEducation Markets and Missing Products
Education RepetitionEducation Repetition
Education the HSBC WayEducation the HSBC Way
Education White PaperEducation White Paper
Education, Globalisation and the Learning SocietyEducation, Globalisation and the Learning Society
Employers and School LeaversEmployers and School Leavers
Evaluating Different Teaching MethodsEvaluating Different Teaching Methods
Everything Louder Than Everything ElseEverything Louder Than Everything Else
Finance and FearFinance and Fear
Five Endings of DesiresFive Endings of Desires
Foibles, Frolics and PhantasmsFoibles, Frolics and Phantasms
FreedomFreedom
FreewillFreewill
French New Wave CinemaFrench New Wave Cinema
Full Report Ruth Rikowski[a]s Book Launch for Globalisation, Information and LibrariesFull Report Ruth Rikowski's Book Launch for Globalisation, Information and Libraries
Gender and Spokesperson in Group Work IssuesGender and Spokesperson in Group Work Issues
Global TradingGlobal Trading
Globalisation and Education RevisitedGlobalisation and Education Revisited
Habituation of the NationHabituation of the Nation
Higher Education and Confused Employer SyndromeHigher Education and Confused Employer Syndrome
Hitchcock: classic auteurHitchcock: classic auteur
Human capital, the knowledge economy and businessHuman capital, the knowledge economy and business
In Retro GlideIn Retro Glide
In the Dentist[a]s ChairIn the Dentist's Chair
Kids in the Land of No DreamsKids in the Land of No Dreams
KM CritiqueKM Critique
Lazy Brit KidsLazy Brit Kids
Learning in the Earthworks of CapitalLearning in the Earthworks of Capital
Learning InvestmentsLearning Investments
Learning to the MaxLearning to the Max
Librarianship and Human RightsLibrarianship and Human Rights
Lifelong Learning and the Political Economy of ContainmentLifelong Learning and the Political Economy of Containment
LSBU StrategyLSBU Strategy
Marketisation of the Schools System in EnglandMarketisation of the Schools System in England
Marx and Education RevisitedMarx and Education Revisited
Marx and the Future of the HumanMarx and the Future of the Human
Marxism and Education RevisitedMarxism and Education Revisited
Marxist Educational Theory UnpluggedMarxist Educational Theory Unplugged
Maturity and FreedomMaturity and Freedom
McDonaldization and EducationMcDonaldization and Education
Michael JacksonMichael Jackson
Michele RobertsMichele Roberts
Miss Allison and Novel WritingMiss Allison and Novel Writing
Moneythought in Higher EducationMoneythought in Higher Education
Mrs Thatcher and Holes in the Kitchen FloorMrs Thatcher and Holes in the Kitchen Floor
Multiculturalism and Faith SchoolsMulticulturalism and Faith Schools
My Tony BlairMy Tony Blair
New Ideas in Ruth Rikowski[a]s Book - Part 1New Ideas in Ruth Rikowski's Book - Part 1
New Ideas in Ruth Rikowski[a]s Book - Part 2New Ideas in Ruth Rikowski's Book - Part 2
New Labour Policy for SchoolsNew Labour Policy for Schools
Nietzsche[a]s SchoolNietzsche's School
Nihilism and Educational ValuesNihilism and Educational Values
No Learner Left UnhassledNo Learner Left Unhassled
Notes on the Confessions of John DenhamNotes on the Confessions of John Denham
On Education for Its Own SakeOn Education for Its Own Sake
On Education StudiesOn Education Studies
On the Capitalisation of Schools in EnglandOn the Capitalisation of Schools in England
On Transhumanism and EducationOn Transhumanism and Education
Open AccessOpen Access
Outsourcing Public ServicesOutsourcing Public Services
Peter Wilby on School PrivatisationPeter Wilby on School Privatisation
Planet of the CapitorgPlanet of the Capitorg
PlatoPlato
Playgound Risks and Handcuffed KidsPlaygound Risks and Handcuffed Kids
Poems by Gregory RikowskiPoems by Gregory Rikowski
Poems by Victor RikowskiPoems by Victor Rikowski
Post-Fordism and SchoolsPost-Fordism and Schools
Post-Fordism in Primary SchoolsPost-Fordism in Primary Schools
Postmodern Dereliction in the Face of Neoliberal Education PolicyPostmodern Dereliction in the Face of Neoliberal Education Policy
PowerPointlessness in Higher EducationPowerPointlessness in Higher Education
Private Schools as CharitiesPrivate Schools as Charities
Privatisation of Schools in EnglandPrivatisation of Schools in England
Privatisation of Student DebtPrivatisation of Student Debt
Races in the Imperial WarRaces in the Imperial War
Readings for Teaching CourseReadings for Teaching Course
Recruitment and Labour PowerRecruitment and Labour Power
Revealed Recruitment Criteria through the Use-value Aspect of Labour-powerRevealed Recruitment Criteria through the Use-value Aspect of Labour-power
Robotic EthicsRobotic Ethics
Ruth Rikowski Updates (Archives)Ruth Rikowski Updates (Archives)
Ruth Rikowski Updates (Archives)Ruth Rikowski Updates (Archives)
School Fees and the 1944 Education ActSchool Fees and the 1944 Education Act
Schools: Building for BusinessSchools: Building for Business
Science Fiction Films and HorrorScience Fiction Films and Horror
Second Time as FarceSecond Time as Farce
Snowballs and Risk in SchoolsSnowballs and Risk in Schools
Social Contract Theory and Political ObligationsSocial Contract Theory and Political Obligations
Socialism is not DeadSocialism is not Dead
Speed of Life - Part OneSpeed of Life - Part One
Speed of Life - Part TwoSpeed of Life - Part Two
Stroppy Individuals and Oppositional Cultures in SchoolsStroppy Individuals and Oppositional Cultures in Schools
Sustainability Policy at London South Bank UniversitySustainability Policy at London South Bank University
Ten Points on Marx, Class and EducationTen Points on Marx, Class and Education
The Business of Becoming a Business for AcademiesThe Business of Becoming a Business for Academies
The Capitalisation of Schools - Federations and AcademiesThe Capitalisation of Schools - Federations and Academies
The CBI and the Business Takeover of SchoolsThe CBI and the Business Takeover of Schools
The Commodification of EducationThe Commodification of Education
The Education White Paper and the Marketisation of SchoolsThe Education White Paper and the Marketisation of Schools
The Evolution of Federations of SchoolsThe Evolution of Federations of Schools
The Last Parents EveningThe Last Parents Evening
The New Japanisation of SchoolsThe New Japanisation of Schools
The Profit Virus - The Business Takeover of SchoolsThe Profit Virus - The Business Takeover of Schools
The Standards Language-game for Schools in EnglandThe Standards Language-game for Schools in England
The Which Blair ProjectThe Which Blair Project
Three Types of Apprenticeship - Three Forms of MasteryThree Types of Apprenticeship - Three Forms of Mastery
Tony and Caroline BennTony and Caroline Benn
Tony Benn: Letters to GrandchildrenTony Benn: Letters to Grandchildren
TransportTransport
Turney[a]s and PPUTurney's and PPU
Uninspiring TowersUninspiring Towers
Universe of Capital and My SpaceUniverse of Capital and My Space
Universities in a Neoliberal WorldUniversities in a Neoliberal World
Utopia and EducationUtopia and Education
What Can Nietzsche Teach YaWhat Can Nietzsche Teach Ya
When Bullies Roam the SchoolWhen Bullies Roam the School
When the Bowers BreakWhen the Bowers Break
Why Employers Can[a]t Ever Get What They WantWhy Employers Can't Ever Get What They Want
Will Hutton and His E-FossWill Hutton and His E-Foss
Wolf on Marx Without SparksWolf on Marx Without Sparks
Women in World WarsWomen in World Wars






Chandos Book Publishing
Finance and Fear: Lessons in Money and Debt


Glenn Rikowski, 27th July 2007, London


Introduction

This article can be read as following on from others (e.g. Rikowski, 2007a, 2007b, and 2007c). It focuses on a now familiar topic in the national press: fear of debt in general, and student debt in particular. As I argued in Rikowski (2007a), as student debt and household and personal debt levels have increased there have repetitive calls for more emphasis on ‘financial literacy’ programmes for our schoolchildren. Now New Labour under Gordon Brown has given the depressing pedagogy of the debt educators something to cheer about: lessons in debt management.


Pawn Shop and Credit Card Classes

A few weeks ago, Rosemary Bennett in The Times alerted readers to New Labour’s debt management programme for school kids:

“Teenagers will be given formal lessons in how to manage their debts, under sweeping changes to the curriculum to be announced this week. A new subject called “economic wellbeing and financial capability” will be introduced to the curriculum for all 11 to 16-year-olds to help youngsters to prepare for financial pressures after leaving school” (Bennett, 2007, p.1).

It’s interesting how the emphasis is on ‘debt management’ and not ‘debt avoidance’. But faced with university fees of £3,000 per annum and rising costs for accommodation then debt management seems to be the name of the game. One might wonder what kind of existential state of grace young people might be in if they ever attain the nirvana of ‘economic wellbeing’. Perhaps only billionaires such as Roman Abramovich can really grasp what this concept might mean in practical terms.

Bennett (2007) also pointed to apparent ‘anxiety’ that young people will move from university study into long-term debt. However, she does not say who these anxious folk might be; perhaps mortgage lenders, bank managers and insurance companies on the one hand (who will have difficulties selling their wares to cash-strapped young people); and parents on the other hand – who may strive to help their debt-leaden offspring, if they are able. Bennett reels off a bunch of disturbing statistics that supposedly justify the new debt lessons: higher interest rates causing ‘misery for millions of households’ with mortgages and credit card bills; consumer debt at £1.25 trillion at the end of 2006; and bankruptcies a record 30,075 for the first quarter of 2007 (Bennett, 2007, p.1). She notes the government is under pressure to lift the cap on higher education fees and to charge ‘graduates commercial interest rates on their student loans’ (Ibid.). Again, she does not say where this ‘pressure’ comes from: university Vice-Chancellors?

The Minister for Children, Schools and Families, Ed Balls, attempted to justify the new addition to the curriculum by noting “that children had to be prepared to manage their money and careers in a competitive and fast-moving environment” (in Bennett, 2007, p.1). Balls argued that:

“Money plays a crucial part in all our lives. I want teenagers to start learning early how to make the most of their money and savings once they start work. Schools have a vital role to play in encouraging young people to aim high and to improve their chances of a successful career, understand about taking risks and develop a dynamic ‘can do’ attitude. They need to understand everyday issues, like opening a bank account, buying a house and saving for their retirement as early as possible, developing a sense of responsibility as citizens” (in Bennett, 2007, p.1).

The thought that young people should start to plan for their retirement ‘as early as possible’ is chilling. Perhaps the obsession with financial literacy might eventually extend down to primary schools and nursery provision. Young kids will need to think about investing their ‘baby bonds’, piggy bank contents and birthday money more judiciously in future. Father Christmas will have calls for stock options and some sharp action in the field of private equity rather than X-boxes or MP3 players, maybe. The future is ‘green’ for the ‘kids in the land of no dreams’ (Rikowski, 2005).


Financial Ignorance Advanced

As I have argued previously:

“Of course, there is an argument that school children should know about how finance capital and its various appendages actually work. Trenchant critiques of the banking sector (and its stratospheric profits), why city slickers get mega bonuses, the withdrawal of state benefits from young people, the higher education fees regime and much else financial would be all to the good” (Rikowski, 2007a, p.2).

Understanding what private equity is (and its effects for inequalities, social injustice and jobs) would be useful too. And hedge funds! Don’t sit on that fence! Tell the kids! Private equity is ripe for debate in the classroom, especially as Richard Lambert, Director-General of the Confederation of British Industry (CBI) is squirming and weaving to justify this wild, cowboy capitalism which he sanctifies as the “new capitalism” (in Odoi, 2007). However, Lambert is fearful of the inequalities this “new capitalism” generates insofar as there may be a backlash. To avoid this, he advocates that the government should ‘invest more in education and training’ so that more folks can benefit from the “new capitalism”. Again, education is dragged forward as a comforter so that the ‘highly incentivised managers’ (Lambert in Willman, 2007) of finance capital can do their dirty business and sleep easy at night. As Larry Elliott has noted, Adam Smith would:

“…have looked askance at an economy gripped by speculative fever, with the emphasis not on making things but on buying and selling, making a turn, churning, taking a punt, sweating an asset” (2007).

It seems education in Prime Minister Brown’s land fit for the New Capitalism has to play three vital roles. First, as millions will be in debt and graduates hugely so, then people have to learn the skills of debt management. Secondly, young people need to be educated to see the ‘benefits’ of private equity, hedge funds, the stock market, and (for Lambert in Odoi, 2007) globalisation. Thirdly, people must be conformed to become accommodated to obscene inequalities of income and wealth: they must not rebel against the power of capital, in general and finance capital in particular, to generate economic and social inequalities. Thus:

“The New Labour debt-mongers want compliance and fear. They want to increase not lessen the burden of debt, and make us feel guilty in the process” (Rikowski, 2007a, p.2).

Real financial learning, learning that exposes the power and shrieking mendacity of finance capital, will be out of bounds in the pedagogic framework of Ed Balls and Richard Lambert. The B Generation rules (see Rikowski, 2001) and infects succeeding generations.


Conclusion

Hopefully, teachers involved in ‘delivering’ “economic wellbeing and financial capability” can make something worthwhile out of the subject. If they can ensure that young people do not become fearful of the power of money and can gain critical tools and knowledge that calls into question the whole basis of the Balls/Lambert financial curriculum, then that would be a most beautiful set of lessons for the future.


References

Bennett, R. (2007) Children to get lessons in money – and debt, The Times, 9th July, pp.1-2.

Elliott, L. (2007) Plc: prerogative of the unaccountable few, The Guardian (Economics), 9th July, p.28.

Odoi, A. (2007) CBI’s Lambert offers private equity a defence strategy, The Guardian (Business), 11th July, p.26.

Rikowski, G. (2001) The B Generation, a paper prepared for the May Day Monopoly events in central London, 1st May, London, online at The Flow of Ideas web site: http://www.flowideas.co.uk/?page=articles&sub=B%20Generation

Rikowski, G. (2005) Kids in the Land of No Dreams, 7th October, London, online at: http://www.flowideas.co.uk/?page=articles&sub=Kids%20in%20the%20Land%20of%20No%20Dreams

Rikowski, G. (2007a) Education for Debt, 22nd January, London, online at: http://www.flowideas.co.uk/?page=articles&sub=Education%20for%20Debt

Rikowski, G. (2007b) Privatisation of Student Debt, 16th March, London, online at: http://www.flowideas.co.uk/?page=articles&sub=Privatisation%20of%20Student%20Debt

Rikowski, G. (2007c) Education the HSBC Way, London, 23rd July, online at: http://www.flowideas.co.uk/?page=articles&sub=Education%20the%20HSBC%20Way

Willman, J. (2007) CBI chief fears inequality backlash, Financial Times, 11th July, p.4.




Print Friendly - Print Friendly with links
Anti-Imperialist
 © Copyright, Flow of Ideas, Ruth Rikowski and Glenn Rikowski
current date time:
Capital and Class
Website Design and Coding by Digo PC
Site optimisation by Bytec Solutions
Free-thought Global Family Government
Higher Education Human Progress Idealism
Immorality Income Generation Indulgence
Injustice Intellectual Development Knowledge Management

Valid CSS!