Schools: Financial Education

Lord Hannan of Kingsclere Excerpts

Wednesday 31st January 2024 Lords Chamber

[Lord Hannan of Kingsclere (Con)]

My Lords, perhaps I can extend the list of desiderata from my noble friend Lord Sarfraz. I would like every pupil, by the time they leave school, to have taken note of some counterintuitive precepts—things that you have to be taught because they do not come naturally. For example, prices are not intrinsic in the way that volume or weight is. That seems an obvious point: if a travel agent puts up its prices during school holidays, it is not because it is being greedy but because it is responding to supply and demand. I feel that I have to say that, having listened to the questions earlier today when people were talking about price gouging and profiteering—vocabulary that I used to associate with authoritarian regimes.

Secondly, imports are a prize, not a concession. Buying high-quality stuff for less money frees up your assets and frees up your time so that you can spend it on other things, buy other stuff—that is what drives the entire economy. It is amazing how many people are against xenophobia in every context except honestly produced, good-value imported goods.

Thirdly, jobs are a burden rather than a gain—or rather, they are a means to an end. The end is to live well. If we can live well working shorter hours as a result of extended supply lines and globalisation, that is a good thing. I wish politicians did not feel the need to defend every deal by saying that it “creates jobs”. You can create jobs by employing people for the state—that does not create wealth. What creates wealth is innovation.

Finally, and most importantly, opportunity costs are real. Things have consequences, even the things that we do not immediately see, what Frédéric Bastiat called

“ce qu’on ne voit pas”—

the unseen things. If, for example, you are strongly in favour of supporting Ukraine, fine, but do not then complain if there is a rise in energy bills. Things have a cost. If you are strongly in favour of preserving unspoilt land and stopping housing around you, fine, but do not then complain if house prices rise. If you strongly supported the lockdown, do not complain about inflation afterwards. If we grasped those things, we would be more informed voters, we would be more fulfilled citizens and, by the time that we came here, we would be more useful legislators.