Teaching economics teaches young people who to blame for their problems

No wonder Michael Gove wants to stop doing it.

While young people in Europe rise up in the wake of economic crises, in Britain they seem to have swallowed the rhetoric that someone else is to blame. They have no stake in the systems that govern them and Michael Gove wants to keep it that way.

You've heard about The Economic Crisis, right? How could you not, everyone's worrying about it. Open a newspaper, turn on the television, tune in to the radio or zone in on social media, and there they are, worrying. The Economic Crisis is always lurking nearby, threatening to breathe fire on us at a moment's notice. Governments have boldly tried and failed to slay it, losing limbs and public confidence along the way.

Our current government ministers set themselves up as bold knights guarding the people, keeping them at arms length from operations lest they get their own ideas and jeopardise the mission to calm everything down. They tell us The Economic Crisis was spawned by previous, incompetent knights and fed by the lazy and feckless, and we believe them. But the new crop of knights is better and bolder, they tell us.

And Gove the Barbarian is one of the boldest. He will smash down everything that gets in his way. He will use his might to protect the delicate workings of the State from the course and lowly masses. Teaching them too much about how it works is at best a distraction from the important business of moulding the compliant workforce that the government's economic plan requires, and at worst - well, I suspect he shudders to think.

So, in spite of vigorous lobbying behind the scenes, he has taken economics out of the citizenship curriculum and replaced it with personal finance. In itself, personal finance is a very welcome addition to the National Curriculum: I wish I had left school with some understanding of banks and budgeting. But, for Mr Gove, that's as far as it goes. He wants people to be responsible with their own money (after all, personal debt is no help to the economic situation), but he doesn't want to let people anywhere near the economy itself. Keep the plebs in the dark about politics, a little knowledge will only lead to trouble.

How irritating it must be, then, that trained teachers have their own ideas about teaching. He’s giving schools more freedom because he wants to free up the market, not because he trusts teachers. (I doubt he wants to ‘let a thousand William Tyndales bloom’, as Fred Jarvis pondered in the Independent.) It's time someone stamped out such subversive tendencies. It's time someone whipped schools into glorious mirrors of business that turn out neat, fragmented packages of knowledge and manners with ruthless efficiency. Little packages that expect nothing from the State; little packages that are eager for the System to gobble them up and fart them into the only bedroom of the last remaining council house. And Gove the Barbarian is the man for the job. 

But what happens if the slaying fails? Or if our knightly overlords lose their remaining credibility? So far, this government has only proved that politics can be pretty hopeless against such beasts as The Economic Crisis, which will likely turn on the people with vigour in the end. The failed attempts of politicians are simply evidence that mainstream politics does not hold the answers. So, people will look elsewhere to protect their own interests, as we have seen with the rise of the far right in Greece and rioting on the streets of Spain. Britain, so far, has got off lightly; we are kept in our place effectively. But for how long? And when our politicians lose their grip completely, do we really want an uprising of people who have been kept alien from political life?

So, put the economy back on the curriculum, Mr Gove. Fulfil your promise to ensure citizenship 'is even better taught' in schools. Prepare our young people properly for economic and democratic life. Otherwise, it will be each for themselves when the fire gets too hot, and your government's precious economic plan will be toast.

Michael Grimes is Online Communications Manager for the Citizenship Foundation.

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/