US Press: pick of the papers

The ten must-read opinion pieces from today's US papers.

1. America the Overcommitted (New York Times)

To succeed in foreign policy, says Jeremy Suri, America must set three clear priorities and pull back everywhere else.

2. The Wire: Why it still matters (Boston Globe)

The issues and concerns raised on the show have grown ever more timely as we descend into a new decade, writes Carlo Rotella.

3. Rabbit-Hole Economics (New York Times)

Tuesday's Republican debate opened the door on a fantasy world where nothing looks or behaves the way it does in real life, writes Paul Krugman.

4. Dollar coin? It's time (Los Angeles Times)

A coin would last longer than a bill, saving the government money, argues this editorial. It continues: But why stop there? Let's retire the penny and the nickel as well.

5. Prison isn't best option for nonviolent youths (Chicago Sun Times)

Research consistently shows that locking up nonviolent juvenile offenders fails to reform them, costs too much and makes us no safer. This editorial says it's time to get smarter.

6. New battle cry: We're 53 percent (St. Petersburg Times)

According to Annie Lowrey, this new campaign, a conservative answer to Occupy Wall Street, has some verve.

7. Ending hypocrisy of terrorist designation (Washington Times)

Gen. Hugh Shelton argues the U.S. government's practice of listing "foreign terrorist organizations" (FTOs) has become an increasingly dangerous and hollow political exercise, rather than a sober assessment of the real threats to America.

8. Health care aside, death panels alive and well (San Francisco Chronicle)

The notion of a White House bothering to request the statutory authority to execute troublesome Americans is just so ... 2009, writes David Sirota.

9. Raising up Hermain Cain (Washington Post)

Enjoy the GOP flavor of the week, while he lasts, says Eugene Robinson.

10. Happy birthday, Mr. Despot (New York Daily News)

This editorial concedes that celebrities occasionally use their star power to help good causes, such as disaster relief. But it continues: or they can help a murderous dictator celebrate his birthday -- for the right amount of cash.

Photo: Getty Images
Show Hide image

How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.