Saturday 22 October 2011

Social Mobility

The need for social mobility has been one of the only things that, for as long as I can remember, all of the political parties in the UK have agreed upon. Everyone agrees that it needs to be improved but there isn't a consensus as to what the required level of social mobility is, only that we aren't there yet. All of the parties have their plans to improve social mobility and will go to great lengths to tell you why the other parties aren't doing enough to increase it.

Last year my wife and I had a frank conversation about the direction we felt the the UK economy was heading and what it meant for our personal prospects. Then, like rats deserting a sinking ship, we emigrated to Australia. We've since been back to the UK for work and have remained keen observers of the UK both politically and economically (although currently, politics seems to be solely dictated by the economy). I mention that I live in Australia because last week I was having a conversation with some friends about social mobility that made me question whether social mobility in the UK is in need of being increased at all.

My Australian friends had a hard time understanding social mobility because Australians generally refuse to acknowledge the class system that exists in Australia. What one of my friends actually said was that, "Australia doesn't have class". Which, whilst true in a literal sense, is untrue in practice. Australia, like the UK, has haves and have-nots. The have-nots want to join the ranks of the haves, and the haves want to have more. Just because the UK has a formally recognised class system doesn't mean that it's the only place in the world where social mobility is an issue. This battle to have more is the common understanding of what social mobility is.

In my observations of the UK I have concluded that, despite conflicting statements from almost every politician, social mobility in the UK is at an all time high. But in this era of austerity how is that possible? Quite simply because we, like the politicians that pander to us, need to properly understand social mobility. It is the movement from one class - or status group - to another. It is not, to use our simplified definition, the battle to have more. Social mobility is our battle to have a different amount. Mobility is not defined by its direction but by its ability to move. Sure it can move up, but it can also move down.

For generations education has been seen as the key to social mobility and it still is. However, in years past, UK students would graduate and get a job. This job would be a better job than they could have achieved without a tertiary qualification and thus their journey to upward social mobility had begun. This was their right, irrespective of how poor their grades were. Graduating university virtually guaranteed upward social mobility.

Today, for middle class students, the absolute best case scenario is that graduating university will mean they avoid social mobility altogether and stay right where they are. Unfortunately for most graduates, the high levels of debt they graduate with and the complete lack of employment opportunities means an almost certain downward social move. Working class youths are now not only being priced out of tertiary education, they are now competing with middle class graduates for poorly paid unskilled jobs. For those who don't go to university, moving up is not an option, so stagnation is also the best case scenario.

What about the post baby boom generation who have worked hard their whole life and sensibly planned for their retirement? Well the markets have crashed, Europe and America are broke and that retirement fund, if it doesn't go bankrupt, won't be worth what you thought it would be by the time you retire. Oh, and you'll probably have to retire many years later than you planned thanks to new laws and lack of options.

Due to the housing bubble, who knows what your property will be worth when you want to retire so you might not even be able to fund your retirement by selling that. Graduates and non-graduates are all equally unemployed so the chances of them buying their own home, one of previous generations other keys to upward social mobility, is a distant dream. Get used to renting kids, because owning your own home is becoming just something your grandparents used to do.

It might be better to voluntarily take some downward social mobility now just to get used to it. If fighting it is futile then why bother wasting your energy on it? For generations we have aspired to be better off than the generation before and, up until now, that has been possible. Unfortunately, like a balloon, this constant expansion isn't going to end well so, in order to avoid the bang, let's voluntarily let a little air out of our dreams.

We've been told for so long now that we should be doing better that we've come to demand it. But now that we are starting to realise that we won't be able to do better, maybe it's time to start embracing the long forgotten concept of the noble working class. We simply can't all be wealthy. Being poor isn't just something you should get used to, ultimately it's something you've always wanted.

For decades, when you asked a teenager what they wanted to do when they grew up, there were always those who didn't really want to do anything. Well congratulations, your dreams have come true, now you don't have to do anything. Since there are no jobs for you you can stay unemployed, it's trendy now and you won't be alone.

We love a rags to riches story. We always have. We love reading about how Jay-Z grew up with nothing and had to sell drugs to survive. How he lived in 'the projects' and how he achieved so much when he started with so little. Well the good news is that, if the UK continues on its current path, the UK will have more and more children starting life with the same advantages as Jay-Z. Imagine how proud you'll be of your child if they achieve greatness now.

Don't listen to the politicians, the UK currently has record levels of social mobility. Unfortunately everyone is moving the wrong way. But the future is looking bright. Soon you'll be so low, you'll only be able to move up.

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