2010 and The Economy
Happy New Year everyone! The year just gone has been testing for most, difficult for many and tragic for some. After so much disaster and heartache, we need a better outcome for this year just begun. There are so many issues which need to move forward, but just now I want to concentrate on the one at the heart of our lives. The Economy.
There are hopeful signs that we are out, or nearly out, of the recession. Much effort, perhaps too much, been has been made to smooth what might have been an even tougher and more difficult road. Too little has been done to bring about the fundamental restructuring of how our economy works in the U.K. Because whilst many countries in the world were caught up in the mayhem, the origin of the contagion was said to be in the United States. This was not entirely true. The epicentre was here in the U.K., not just in London, but in every High Street, Mall and Retail Park.
At the start of the calamity the credit card debt of the citizens of the U.K was greater than the total of all the rest of Europe put together. Our total public and private debt owed overseas was nearly four times our GDP. But it was not just this. Because of the idiotic inflation in residential property values the cost of housing was sucking resources out of the coffers of every family in rent and mortgages, so that incomes had to keep pace over the years for people to stay afloat. Thus we could not afford to make anything and manufacturing jobs were exported to reduce costs.
Because the financial services, legal and professional sectors grew and grew, ordinary people funnelled more and more of their earnings out of their own pockets into pockets already overflowing, in the form of interest and fees. Bankers took this money and gambled it on obscene bets which they lost. Financial meltdown was averted by rescue from the beleaguered ordinary taxpayers, whose money, otherwise available for new schools, hospitals, railways and environmental projects was diverted to the rescue of these greedy unprincipled scoundrels whose assertion that they are too important to fail and unless there are paid millions they will all run away is such total and utter rubbish that nobody outside the Westminster Village and that eye-sore Canary Wharf believes them.
Anyone who thinks we can go on as before is a fool. The people have already started to take matters into their own hands. We are again a nation of net savers, with the highest level of personal debt reduction since records began. Any attempt to go back to the old way will fail. We must make more of what we buy, earn more of what we spend and our taxes have to be used to regenerate manufacturing industry, modern infrastructure, a clean environment and more locally accountable public services.
The bankers must be kept on a very tight rein. Future rescue should be denied. Pay must be socially acceptable. If they do not like it they can go to hell. Even there they may not be welcome.