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'Don't believe everything you read in The Times about me and student loans' blog
in Martin's blogs & appearances & MoneySavingExpert in the news
14 replies 2.3K views
Former_MSE_Helen Former MSE
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.
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Read Martin's Don't believe everything you read in The Times about me and student loans Blog.
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This is the MSM we're talking about. This shouldn't come to a shock to someone who actually works in MSM.
Some suggested reading if it does come as a shock to anyone:
The caveat in paragraph number 19:
-o I am humble -o You are attention seeking -o She is Nadine Dorries
I remember reading an article about Gordon Ramsay in which there was a part which said something like 'in doing research for his new TV series, Ramsay found that there are huge numbers of young women who don't know how to cook'. Fair enough. Yet somehow this translated into an article headline of Women Can't Cook Says Gordon Ramsay. Outrageous - the headline was obviously thought up well before the content of the story was known.
"I get so many e-mails and messages from people saying, “I’ve just seen an advert for a company
charging 2,300% interest, that’s disgusting, it should stop”—is that I did a pet calculation the other day
which showed that if I lent you £20 and said, “Pay me back a pint of beer next week; buy me a pint for
it,” and the pint cost £3, that’s 141,000% interest, if you compound it. Yet most people would say, “Buy
me a pint and £20, is a pretty reasonable deal.” Interest rates are a blunt tool"
Evidence to the Treasury Select Committee 19th October 2010
Oh dear! The exchange of a pint of beer at a pub is not a 'pure' commercial transaction (nobody is keeping track but there is an expectation that things will eventually 'even out' because the lender is likely to buy the next round). This is a very different relationship to that between a lender and a payday loan company.
That's the reason the former is socially acceptable (it's human beings building relationships) but the latter is not (it's a lender trying to screw the borrower for everything they can get away with).
Think of savings and investments as giant cakes – some Chocolate (representing Cash, I never said this was subtle!) and some Strawberry (Shares).
I think he has an analogy about bread and whether you buy it from the baker or supermaket to explain prices.
What's the control in this experiment? Shall we say it is the body of prospective university students who would apply for a university education if only their country stood up to the plate and paid for it?
So then shall we say 30% of those are students who do already understand the scheme and will now not apply?
And Martin is saying that there is a danger of another 30% who will not apply because they can too easily be persuaded by political argument rather than some soundbite? Or maybe its 10% and 10% or 20% and 20%? Maybe someone is worried its actually 50/50 and at this rate they'll need to get lastminute.com to flog off cheap courses in September 2012 with free beer crisps and accommodation thrown in?
Seriously, does Martin perhaps mean as regards these commandments handed down now from on high (and lo, even set in stone) that we should all keep quiet now in church and let the minister's sermon sink in, or perhaps even let the minister put his teeth back in and have another go at telling it? :rotfl:
My point about the beer and crisps analogy, wasn't that "I wouldn't use a food analogy" - of course if that works to explain a point I would.
Its that in this case I don't believe trying to equate the complexity of student finance into a cost per week is how I would communicate it, never mint pints and crisps,- it misses all the points.
So let me clarify (though I thought it was pretty clear) - I had never heard, and didnt know anything about that analogy, nor am I planning to use it - hence why attributing it to me is completely incorrect.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
These are the the things to which we MSE forumites yearn to know the answers :money: