Romney says 47% of US voters are "dependent" and will never vote for him

Secret video reveals Republican candidate describing 47% of voters as "victims" who will always vote for Obama.

If you're running for president of the United States, it's advisable not to dismiss 47% of the electorate as scroungers who will never vote for you, especially if you're a multi-millionaire who paid just 13.9% in tax in 2010. But that's exactly what Mitt Romney has done. Mother Jones has just released a secretely recorded video in which the Republican candidate is shown telling a private donor dinner that 47% of US voters are "dependent upon government" and will vote for Obama "no matter what".

Asked by one donor how he could win in November, Romney replied:

There are 47 percent of the people who will vote for the president no matter what. All right, there are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you-name-it. That that's an entitlement. And the government should give it to them. And they will vote for this president no matter what…These are people who pay no income tax ... [M]y job is is not to worry about those people. I'll never convince them they should take personal responsibility and care for their lives.

It's compassionless conservatism in its purest form.

You might reasonably argue that those offended probably wouldn't vote for Romney anyway (one often hears this sort of rhetoric from the Tea Party) and, therefore, that the tactless Republican had a point. But it's likely that the video will alienate many of the floating voters he needs to win over if he's to catch Obama in the polls, while also motivating disillusioned Democrats to vote. Among those who pay no income tax, for instance, are millions of pensioners (the most likely group to vote), whom one assumes won't take kindly to being described as "victims" and dependents, as well as students and the disabled, none of whom can be described as scroungers. At a time of economic stagnation, it's also unwise to imply that the unemployed, many of whom will have paid tax in the past (often at a higher rate than Romney), simply chose not to work.

With some success, the Democrats have portrayed Romney as a candidate with little concern for anyone but the wealthy - now they have all the proof they require. Worse, the video suggests he is an insincere man who says one thing in public and another behind closed doors, a fatal impression for any politician to create.

Here's how the Obama campaign responded tonight:

It’s shocking that a candidate for President of the United States would go behind closed doors and declare to a group of wealthy donors that half the American people view themselves as ‘victims,’ entitled to handouts, and are unwilling to take ‘personal responsibility’ for their lives. It’s hard to serve as president for all Americans when you’ve disdainfully written off half the nation.

Update: Mother Jones has just released another secret Romney video, this time featuring a series of ill-advised comments from the "former presidential hopeful" on the Israeli-Palestinian conflict.

Asked by one donor how the "Palestinian problem" could be solved, Romney replied that the Palestinians had "no interest whatsoever in establishing peace, and that the pathway to peace is almost unthinkable to accomplish". He added: "I look at the Palestinians not wanting to see peace anyway, for political purposes, committed to the destruction and elimination of Israel, and these thorny issues, and I say there's just no way."

Republican presidential candidate Mitt Romney said 47% of US voters "believe that they are victims". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.