The Importance of Economic Literacy

illustration: Natalie Owen

illustration: Natalie Owen in LeftLion.

I’ve been harping on about the importance of literacy for ages but never in terms of economic literacy. As we’re all expected to work zero hour contracts perhaps it’s about time we had a zero hour mortgage…

First off, let’s have a few statistics about the miserable mess we’re in. I’m not talking about Brexit, Trident or the prospect of Big Sam becoming the next England manager. I’m talking about two four letter words that define our lives: work and home.

According to the Ministry of Justice (MoJ) there were 10,732 repossessions of rented and mortgaged homes by bailiffs between January and March. Although this was down by 123 during the same period in 2015, it was up by 479 for the final quarter of 2015. But we should be grateful as The Council of Mortgage Lenders (CML) believe if repossessions continue to drop at the current rate we’ll be at our lowest annual numbers since 1982. Back when houses were affordable.

There are some reasons to be cheerful in terms of buying a property. The standard variable rate for a mortgage has plummeted and a rise in stamp duty has slightly halted property developers from  swallowing up entire streets. But this has been offset by the ridiculous increase in house prices that simply make it impossible for anyone to save up a deposit, let alone get a mortgage. I bought my first home when I was twenty-one and it was roughly 3 times my annual wage. My current home is 7 times my annual wage. The house is the same size.

This may explain why rents in both the social and private sectors have risen this year by around 7-9%. The landlords who’ve had their wings clipped by the Chancellor are passing this cost onto those who can’t afford to get onto the property ladder. According to the MoJ there were 10,636 evictions during the first quarter of the year. Expect this to increase, as the cap on housing allowance kicked in at the beginning of April. Then there’s the 7.2million, according to Churchill Insurance, who have moved back in with the parents because a relationship ended and are too poor to rent alone.

For those without the luxury of parents, there’s the streets. You always know when the privileged are in power because the number of people ‘begging’ zooms up. On an average walk across town I probably get stopped between 5-10 times for ‘a spare bit of change’. Expect more of this as hostels, Citizen’s Advice, and public sector support service staff increasingly begin to evaporate.

What we really need is change.

Speaking of which, banks have a lot of loose change at the moment. They’ve saved a bundle in wages by adopting the trend set by supermarkets and kitting out their stores with self-service machines. The unidentified item in the bagging area is staff. People are losing their jobs in every area of work as technology slowly takes hold. Ring up for a taxi and you’ll no longer be put through to a call centre of eternally bored operators. Instead there’s an efficient automated service that tells you where you want picking up from before you’ve even said a word. And you know things are seriously wrong when Waitrose gets in on the trend and dismisses checkout staff in favour of self-service machines.

Banks need to cut back on wages because they’ve finally been caught with their pants down. According to the CCP Research Foundation the top twenty banks paid out £252bn in conduct charges over the past five years, such as the six banks fined a record £4.3bn for rigging foreign exchange rates and Lloyds £4bn penalty for mis-selling of payment protection insurance. So why exactly did we bail out the banks again?

According to the Sutton Trust, the poorest British students will graduate with debts in excess of £50,000. (In the US, by contrast, where students study for an extra year, the average debt at a private for-profit university is £29,000.) Although state-sponsored loans are linked to future earnings, these debts are subject to inflation so the money keeps going up. Students who studied a decade or so ago will tell you that although their debts were a lot cheaper, the loans have been sold off to debt agencies, despite the promise that they wouldn’t be, and now fear earning a penny above a certain threshold because it will trigger larger repayments.

For those of us fortunate enough to have a job there is the constant restructuring of departments and the shoehorning of two jobs into one, and for an added bonus, with reduced hours. Some of us have had our wages frozen for so long we have to put gloves on when we draw money out the bank. We’re told we should be grateful that we’ve got a job, and expected to smile when we receive the ‘Happy Friday’ email wishing us the very best for the weekend and remembering not to be late back in on Monday.

For adolescents who’ve skipped F.E. there’s the temp agencies where you’re guaranteed the minimum of work for the minimum amount of money. One lad I spoke to told me he had to drive to Grimsby to do a two hour shift and he wasn’t paid for his petrol or the four hours the round trip took. He had to do it because if he refused they wouldn’t consider him for other work. Work left him out of pocket. Of course this is completely illegal but it goes on all the time. ‘Calm down and carry on’ is the expression. This translates as ‘Shut up and do as you’re told’.

Zero hours contracts are the reality for most of us now. University lecturers are paid by the term and join an expendable workforce who can be got rid of with the flicker of an eyebrow. And this is where the Big Society steps in. The volunteers who run our libraries. The volunteers who cut down the forests. The volunteers who write for free for magazines because they have the deluded idea they can make a difference. So in some respects we’ve been complicit.

All of which finally gets me to my point. If we are expected to live flexibly in a big society on zero hours contracts, isn’t it time we had a more flexible mortgage, a ‘zero-hours’ mortgage, to reflect the reality of our lives?

A zero-hours mortgage would work exactly like a zero-hours contract. If there’s no work, there’s no mortgage payment. Simple. It’s not your fault that you’re losing your job in the call centre to the latest Siri. If you do work a few hours then you pay a proportionate payment. Yes, calculating this could be tedious but isn’t that better than repossessing a home and putting a family out on the street, which is ultimately more costly for society?

A university lecturer told me recently that universities need to throw out all of their liberal newspapers and stock the Financial Times. He said that’s where the power is, in the things people don’t understand. The things that are deliberately made complicated. For this reason he believes economics should be at the heart of everything that it is taught, no matter what the discipline. It’s for this reason that I’ve joined a reading group where we are slowly working our way through Karl Marx’s Capital Volume One, reading one hundred pages per week. It’s complicated, but far more humorous and literary than I would have imagined. I don’t believe in communism, and I certainly don’t believe in capitalism in its current manifestation. All I know is that something isn’t right at the moment and the system needs a bit of tinkering. Hopefully this book group – comprised of PhD students, unemployed, artists etc – and from Manchester, Mansfield and other places not necessarily beginning with M will help me figure it out.

The above article was originally published in the August issue of LeftLion magazine and The Axiological Perspective.

Sources:

The Nottingham Essay : Margaret Cavendish (1623-73)

Flamboyant, theatrical and a staunch fighter for women’s rights, 17th century writer, poet and general all round smart-arse (1623-73) Margaret Cavendish is yet another example of Nottingham’s rich literary history and why we were made a UNESCO City of Literature in 2015.

Ok. Yes, Margaret Cavendish was born into a wealthy Essex family, but we can claim her as one of our own as she married William Cavendish, the Lord Lieutenant of Nottinghamshire, and spent many years here helping to tart up Bolsover Castle and Welbeck Abbey.

Margaret was raised by her mother as her father passed away when she was two. This meant she avoided the strict parenting of the age and was instead encouraged to play and use her imagination, both of which would be pivotal in shaping her moral and mental outlook. In 1642, the family moved to the Royalist military stronghold of Oxford, where Margaret became a Maid of Honour to Queen Henrietta Maria. But when the Civil War started to properly hot up in 1644, Mary and the Royal entourage fled across the channel to the safety of Paris. Life as a courtier wasn’t quite as glamorous as you would imagine. It was full of back-stabbing bitches all eager to up their social status and was in stark contrast to the freedom and love of her childhood. It would shape in Margaret a lifelong distaste for fashionable society that she would satirise in her play The Presence, as well as other stories.

The following year she got hitched to the widowed William Cavendish, thirty years her senior. As the Marquis of Newcastle, William was one of the most powerful men in England, so Margaret quickly jacked in her job as a courtier. William, in addition to being a commander of Charles I, was a well-known patron of the arts and loved grand building projects, transforming traditional aristocratic households into centres of artistic patronage, with guests such as Thomas Hobbes and Descartes regularly invited over. Unfortunately, due to the Civil War, the couple would have to wait until the Restoration of 1660 before they could return back and develop their cribs.

During their enforced exile they travelled across Europe, living mainly off credit and reputation. Access to cosmopolitan culture and an educational elite would have a profound effect on Margaret. In Utrecht, she encountered Anna Maria van Schurmann, author of The Learned Maid (1639), which argued for the improvement of women’s education. In Paris, she discovered Pierre Le Moyne’s Gallerie des Femmes Fortes, a new movement that idealised strong women in possession of ‘male’ virtues (courage, moral strength) while retaining their femininity (beauty). Paris was also home to the emerging feminine salon culture, where women debated hot topics such as whether it’s better to be intelligent or beautiful, and what constitutes a good conversation. For maximum kudos, responses were given in allegories, similes or compact character sketches and was basically a testing ground for wit and wordplay, kind of like a seventeenth century version of Radio 4’s The News Quiz, but for aristocratic women.

Margaret could quite easily have moped around in relative luxury during her exile. Instead she embarked on a prolific writing career that constantly challenged accepted norms. Poems, and Fancies (1653) was the first book of English poetry deliberately published by a woman in her own name. To put this into context, historian Katie Whitaker found that in the first forty years of the seventeenth century there were eighty books published by women, equating to about 0.5% of all published work, and most of them were published posthumously or in pirated copies without the author’s consent. It was rare for even aristocratic women to be properly educated as their focus was normally housewifery. It was even suggested that education was dangerous for the inferior female brain which was deemed soft and incapable of absorbing information. Consequently, Margaret was educated at home in basic literacy. For her to dare to have an opinion was in itself an act of rebellion – to make this public was scandalous.

Poetry was the commonest genre of writing by women and was generally used to celebrate social occasions such as marriage. Yet exceptionally, for either a male or female, Margaret never once produced love poetry, deeming it too obvious and “a tree whereon all poets climb”. Instead she opted for philosophical verse that challenged the Christian-Judaism tradition of man’s superiority over nature. A Dialogue of Birds, for instance, critiqued man’s obsession with hunting and killing birds that dared eat the tiniest of fruits. She went on to argue that animals may have intelligence too. As she moved to other genres, she was keen to broach masculine subjects, debating the role of religion, law and philosophy. She advocated the celibacy of monks on the grounds that it helped keep the population down. Then she exposed the folly of religion, arguing that if men based their supremacy over women on the grounds that Jesus was a male, then men were by implication inferior to a dove, given that this is how the Holy Spirit is represented. The men didn’t like this smart arse, and negative rumours started to spread.

For a long time, people didn’t accept that Margaret had written her books herself because she was addressing male topics, and therefore they must have come from a male mind. Her poetry was slated for its poor rhyme and metre but she shrugged this off, arguing there was an obsession with form to the detriment of imagination. Other works were criticised for their poor grammar, punctuation and spelling. There’s been some fanciful claims that this was deliberate, that Margaret was simply appropriating language and creating her own unique style, a bit like txt spk. But it was more likely that she was dyslexic. The fact that she had no formal education or training in quill writing would have further exacerbated the problem.

A lot of these prejudices, particularly male expectations and social conventions, recur throughout her writing. In Assaulted and Pursued Chastity, the heroine Lady Travellia saves herself from a Prince by dressing as a male and fleeing aboard a ship. At her destination she encounters cannibals but she is able to save herself by learning their language and communicating on an equal level, something more achievable in the novel than in real life. In The Blazing World, a kind of Utopian political thriller which is seen by many as the first science fiction story, Margaret appears and strikes up an intimate friendship with an Empress, suggesting there is more to life than heterosexual relationships.

Margaret exuded as much individuality in her clothing as she did on the page. She wasn’t content to go along with the latest trends and instead designed her own costumes that strived to symbolise her revolutionary identity as a female intellectual. People would flock from miles around to see her, often attracting crowds usually reserved for Royalty. Diarist Samuel Pepys tracked her down in 1667 but was disappointed at seeing the myth in the flesh, dismissing her as “a mad, conceited, ridiculous woman” but this criticism may tell us more about Pepys. He was authoritarian in his own marriage and came down hard on his wife when she dared to wear clothes he did not approve of. Unsurprisingly, Margaret wasn’t a fan of slap either, finding it oily on her skin and generally disgusting. Her only compromise was a bit of powder on her face and painting her nipples scarlet. The mindless following of fashion was just another form of oppression as far as she was concerned. This attitude didn’t bode well with other women, who saw her as betraying her gender. But she had come to expect snobbery, idle gossip and backstabbing from her class. She would take her revenge on the page.

2014 is the Year of Reading Women and it is hard to think of a more inspirational figure from Nottingham’s past for modern writers. Yes, she was a toff. But a toff who turned her back on an easy life and instead strived to change perceptions. She made many enemies and many friends during her fifty years of life and was essentially an Epicurean at heart, in search of personal pleasures. If society would not allow a woman equal rights then she would create her own through words, “Though I cannot be Henry the Fifth, or Charles the Second, yet I endeavour to be Margaret the First… I have made a world of my own: for which nobody, I hope, will blame me, since it is in everyone’s power to do the like.”

This article was based on two superb books: Mad Madge by Katie Whitaker and Margaret Cavendish: The Blazing World and Other Writings, Ed. Kate Lilley. It was originally published in LeftLion magazine Jan 2015