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Theo Paphitis Defends Lord Young

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http://www.bbc.co.uk/news/uk-11805317

Dragons' Den star Theo Paphitis has said Lord Young's comments that most people have "never had it so good" were "technically correct".

Lord Young resigned from his position of enterprise adviser to the government over his remarks about the recession.

Mr Paphitis also told BBC Radio 5 Live's Stephen Nolan programme he was concerned that "some half-wit" would replace Lord Young.

He was "a very experienced businessman and politician", he said.

"What has happened in this recession has never happened before," he added. "In the last recession, interest rates were up to 15% so, if you had a mortgage, all your income went on paying it.

"Now our mortgages have gone down because interest rates have gone down to practically zilch, so of course we have had more disposable income.

"So, technically, those of us who have a job and are still in work, and not worried about losing our job, have actually been better off, so he [Lord Young] was technically correct. So why did we fire him?

"My worry is they are going to put some half-wit in now that Lord Young has gone. He was a very experienced businessman and politician as well."

At a lunch with a Daily Telegraph journalist, Lord Young said that for "the vast majority of people in the country today, they have never had it so good ever since this recession - this so-called recession - started".

He quickly apologised for his comments, but resigned on Friday from the unpaid advisory role he took on last month.

Downing Street called his remarks offensive and said Mr Cameron was "unimpressed".

Labour leader Ed Miliband said Lord Young's initial appointment reflected badly on the prime minister as the peer was "out of touch with people"

Edited by exiges

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I would have to agree with him. Living standards for the majority are as high as they ever have been.

Unemployment has barely risen and is near historical lows, repossessions are a fraction of earlier recessions. Despite the headline drop in GDP output the effect on living standards of the recession has been much milder than that of the early 90's, or 80's.

We are being subsidised by cheap labour in China. Consumer goods cost a fraction of what they did 10 or 20 years ago as a % of average disposable income.

We have forgotten the real hardship of the last century. 1930's and 1940's, late 1970's, early 1980's etc.

5 years ago were things any better? Most of the "positives" you could take lead to problems we are now having to deal with (debt).

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I've got a lot of time for Theo.

He's the dragon that went bonkers over the government giving a £150k grant to some bloke that was on the show touting his large verson of Simon Says that was effectively 4 traffic cones with flashing lights on them. :blink:

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"What has happened in this recession has never happened before," he added. "In the last recession, interest rates were up to 15% so, if you had a mortgage, all your income went on paying it.

Rot.

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They are both right.

All I've heard from people I know with mortgages is that they are paying f all on their houses each month and they're loving it.

Hmm, I thought savers outnumbered borrowers. Don't Theo or Lord Young have any savings?

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They are both right.

All I've heard from people I know with mortgages is that they are paying f all on their houses each month and they're loving it.

Interest only mortgages then I assume. Because otherwise you aren't paying f* all, you are still paying a sizeable sum pay off the principal.

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Interest only mortgages then I assume. Because otherwise you aren't paying f* all, you are still paying a sizeable sum pay off the principal.

The fact is that many people taking out tracker mortgages expected to have to pay a 'normal' interest rate.......(and repay capital). In this sense they have received massive unexpected windfalls, more so those who took mortgages larger than they should have been able to afford. Meanwhile the torture and destruction of the prudent continues.

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The backlash against Lord Young has focussed on his "insensitivity", this is inaccurate imo. He was bang on, the trouble is his audience has become too sensitive. They can't handle a bit of straight talk.

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Until children in the UK are fetching water from a dirty water source, eating from bins and wearing rags imported from house to house collections in Roumania I'd go as far to say we've never had it so good.

We define poverty by not being able to afford a holiday ffs.

Not by lack of water, food or housing.

We are so spoilt in this country and globalisation is going to rob us of that slowly.

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Just can't see why you'd take a guy on to do an honest job, then fire him a week later for being honest. The "nicey nicey" thing to say is that we've all suffered in the recession, I feel your pain blah de blah , but that is actually more dishonest than LY. Which is why nobody trusts politicians.

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Until children in the UK are fetching water from a dirty water source, eating from bins and wearing rags imported from house to house collections in Roumania I'd go as far to say we've never had it so good.

We define poverty by not being able to afford a holiday ffs.

Not by lack of water, food or housing.

We are so spoilt in this country and globalisation is going to rob us of that slowly.

it seems managed withdrawl has replaced the cold turkey response to previous recessions.

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Just can't see why you'd take a guy on to do an honest job, then fire him a week later for being honest. The "nicey nicey" thing to say is that we've all suffered in the recession, I feel your pain blah de blah , but that is actually more dishonest than LY. Which is why nobody trusts politicians.

Politicians can't win. Then they're creative with the truth the public insist that they're all lying cheating skumbags, and when they tell the truth they're branded insenstive.

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The backlash against Lord Young has focussed on his "insensitivity", this is inaccurate imo. He was bang on, the trouble is his audience has become too sensitive. They can't handle a bit of straight talk.

Agree the focus of the backlash - insensitivity - was wrong

But he was factually incorrect. He said "for the vast majority of the people of this country, they have never had it so good".

This is wrong.

The vast majority are not on lifetime trackers close to the BOE base rate

Only a minority of the people of this country have mortgages with low interest rates

Of those that are enjoying low interest rates, many have high debt principal with many on interest-only mortgages. They may have low repayments but they are only a small step away from bankruptcy if interest rates rise. This is awful financial insecurity

And then of course there's pensioners, future pensioners and those on low fixed incomes getting hammered by ZIRP and currency debasement

So he's factually wrong

The broader point is ZIRP is an indicator of a dying seriously-in-trouble economy. ZIRPed countries have piled on debt principal at ZIRP rates - they face bankruptcy with even a tiny rise in interest rates. People living in these countries can expect economic collapse in the not to distant future. Have they really never had it so good?

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Blimey the guys having his lunch and dropping a few comments that are factually correct but rather dramatically stated and suddenly its national news. If we this paranoid aboiut the odd comment we will end up with nonentities advising government.

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There are some 35 million savers in this country versus 12 million borrowers.

If you wrongly assume that the 12 mil are on IO mortgages then savers still outnumber borrowers 3:1.

Good?

Well it is if you enjoy sub-inflationary returns of <3% at best.

And remember in fact more people own their own homes than actually have mortgages on them.

So Young was factually incorrect.

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Blimey the guys having his lunch and dropping a few comments that are factually correct but rather dramatically stated and suddenly its national news. If we this paranoid aboiut the odd comment we will end up with nonentities advising government.

Nope, factually incorrect

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Theo's remarks that 'most' Britons are better off are clearly nonsense when he can only defend them with a long series of 'ifs'. If you have a job. If you aren't in danger of losing it. Even then I don't agree, you would have to add - If you have a mortgage, If you bought property at least 10 years ago, If you are over the age of 50, If you are not a student, If you are not young.

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Nope, factually incorrect

OK, so he should have said most people with mortgages and jobs are better off. So its a mistake. I know what he meant - after all, there are a lot of people with mortgages and jobs.

I like Cameron, but will he sack himself when he makes a similarly innaccurate statement over lunch?

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'most' Britons are better off

than 90% of people in the rest of the world.

We have tight health and safety rules to protect people at work.

We have rules against slavery.

We have a safety net of generous benefits that makes people aim for the UK as the destination of choice.

We have council housing for those in need.

How many people starve to death a year?

How many people freeze to death on the streets?

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Politicians can't win. Then they're creative with the truth the public insist that they're all lying cheating skumbags, and when they tell the truth they're branded insenstive.

Leaving aside the point that he shouldn't have said "the majority" (as pointed out above it's only a segment of society, albeit a significant one, that are benefitting from the low interest rates), it does seem strange to have seen such a reaction. After all Gordo was in no danger of losing his job when he spouted his rubbish about ending "boom and bust". I wonder if Dave had to let him go because, let's face it, the current situation is a result to a large extent, of the last government's actions. By saying people, or some of the people, are well off, is admitting that the last government's policies have worked in this way.

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.....

We have tight health and safety rules to protect people at work.

We have rules against slavery.

We have a safety net of generous benefits that makes people aim for the UK as the destination of choice.

We have council housing for those in need.

....

All of which David Young would like to see taken off you if you give him half a chance.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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