Hey there! Sign in to join this conversationNew here? Join for free

What will be the Economic Repercussions of the fee rise? Watch

    • Thread Starter
    Offline

    0
    ReputationRep:
    Graduates having to pay back 9% of their earnings over 21k certainly sounds like it's going to affect the UK economy in the long term, but I haven't really seen many discussions on this matter. What is essentially an extra tax band is going to be given to new graduates and this could very well decrease their spending power in the long term, but to what extent?

    Could they cause economic divides between Scottish, Welsh and English graduates with the varying amounts they'll have to pay? Could they cause a class or age divide?

    Should current tax bands be re-thought at some point in the future due to the fees increase?

    I'm curious as to how much these fees will affect the big and long term picture of the UK and, whilst I disagree with the proposed fee hike, I thought it'd be interesting to start a thread on the matter.

    Discuss.
    Offline

    0
    ReputationRep:
    Considering the current system I really don't think it will make that much difference.
    One area which might be affected is the housing market.
    • PS Helper
    Offline

    14
    ReputationRep:
    PS Helper
    No Economist naturally wants the fee to stay at 3K nor go up to another fixed price. They'd prefer the market to decide, and in this respect a fee increase does a little into correcting the low fees from before. I have a feeling you think economists would find the fee rise immoral, on the contrary; if the most efficient point was no one going to uni they'd choose that :teehee:
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by yoyo462001)
    No Economist naturally wants the fee to stay at 3K nor go up to another fixed price. They'd prefer the market to decide, and in this respect a fee increase does a little into correcting the low fees from before. I have a feeling you think economists would find the fee rise immoral, on the contrary; if the most efficient point was no one going to uni they'd choose that :teehee:
    Not really.
    Offline

    0
    ReputationRep:
    It will see a rise in debt level for a lot of consumers and this brings with it all those repercussions. Debt causes lower spending through a contraction of disposable income. As another poster pointed out it may hamper graduates chances of a obtaining a mortgage and so effect the housing market - less buyers and more sellers could see a fall in house prices. But the again we could see increasing demand for rental properties. One poster has also suggested that an economist would always support a free market? No, an economist will support what they think works best for an economy (presuming they are an academic economist and not a politican!). As it happens, a free-market doesn't always give desirable outcomes for an economy.
    Offline

    0
    ReputationRep:
    (Original post by yoyo462001)
    No Economist naturally wants the fee to stay at 3K nor go up to another fixed price. They'd prefer the market to decide, and in this respect a fee increase does a little into correcting the low fees from before. I have a feeling you think economists would find the fee rise immoral, on the contrary; if the most efficient point was no one going to uni they'd choose that :teehee:
    Sorry, but **** friedman. *

    his views on market provided education are bull****.

    the last point is jokes though

    * though generally I like his views, it must be said
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Would you like to hibernate through the winter months?
    Useful resources

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.