Some post-Question Time clarifications

I seem to be the Marmite man. People love me or hate me!

Thanks to all those people who posted messages of support, praise or congratulations either on this blog, the Question Time blog or on Twitter after I made my debut on that show last night. But as one tweeter pointed out, "@ns_mehdihasan is like Marmite." Indeed. I seem to have upset, annoyed and angered lots of people on the right, as well countless Lib Dem apologists. What can I say? That's life. Don't take it so personally. Let's agree to disagree.

QT is a great show and I had great fun appearing on it (even though Iain Dale thinks I didn't smile enough. Sorry, Iain!). But it's not a format that lends itself to forensic examination of policies or arguments, and despite the fact that I speak at ten words per second (thanks, David Prescott!), even I couldn't challenge or clarify some of Simon Hughes's claims.

For the record, I like and admire Simon Hughes and felt sorry that he had to defend the indefensible. Where is David Laws when you need him, eh? Oh, and while I'm at it, Michael Heseltine is my second-favourite Tory -- after Ken Clarke, who's my favourite (I know, I know, but I just can't help it!). It's a shame I've had to have a go at both of them in recent BBC panel debates. Where's Michael Gove when you need him?

So here are some post-QT clarifications:

1) Simon Hughes kept pointing to the Tory/Lib Dem proposal to raise the income-tax threshold to £10,000. He seems to believe this is a perfectly progressive policy. But he knows, as the IFS and others have pointed out, that such a policy will cost £17bn, of which only £1bn will go to the lowest earners. He also knows that the poorest people in Britain will not get a penny from this policy because they tend to be out of work and not paying any income tax to begin with. Oh, and as the Fabians' Tim Horton has pointed out, this policy is no longer funded by redistributive measures such as the mansion tax and the scrapping of higher-rate pension relief.

2) Hughes could not address the main issue: why did the Lib Dems agree to Tory cuts in spending this year, despite campaigning against such cuts? Aren't such cuts, to quote Vince Cable, a "smokescreen" for public-sector job losses? This is an unforgivable concession, in my view.

3) Talking of concessions, Hughes claimed that Labour had offered nothing and that the Tories had moved the most. I'm confused. In the end, the Tories adopted the Labour manifesto pledge to legislate for a referendum on AV (not PR!) but promised to campaign against AV in the actual referendum itself. How is that a better deal than a Labour referendum on AV which the Labour Party actually then backs? He also got lots of applause on the topic of civil liberties -- but omitted to mention that Labour negotiators had offered to drop ID cards in return for a deal with the Lib Dems.

4) I'm not an opponent of coalitions or coalition politics. I had hoped for a hung parliament because (i) I didn't believe Labour had earned the right to govern on its own, after 13 years of ups and downs in office, and (ii) I naively assumed that such a scenario might bring about a progressive realignment on the centre left and hasten electoral reform. I was wrong. And I'm angry that a coalition of Labour tribalists and Lib Dem power-seekers betrayed the progressive, anti-Tory majority in this country. But let me be clear: unlike Melanie Phillips, I have no problem with coalitions and think coalition government, in theory, can actually have a positive impact on the nation and on the economy. I just think this coalition is a coalition of convenience, unprincipled and unstable. But I hope, for the sake of the country, that I'm wrong and the optimists and apologists are right.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”