Fixing the roof while the sun shines

The crash of 2008 was indeed caused by the banks but it was an expression of a much deeper malaise, an economy which is not founded on money as a veil, as Adam Smith called it, of which the value rests on the labour and goods it represents, but an economy floating on debt. If you owe too much you can only serve the interest on your debt by borrowing more, instead of spending your income on goods and services which will not only benefit you but increase the wealth of those who make them. Thus debt economies shrink instead of grow. Eventually a point is reached where interest payments are so high the economy crashes. This is what happened. Instead of fixing it Osborne made it worse through austerity. Eight million people in Britain are now in the debt trap and collectively owe over £2 billion. We are on our way to another crash, at least we are if we stay with the austerity for other people Tories, and since Labour will borrow even more perhaps an even greater one if we go with Labour. But at least they will release a lot of people from the debt trap so maybe Corbyn’s plans will work. But just what will Labour do if there is a run on the pound because of their massive borrowing? They are not telling us and you can’t help wondering. You would have thought, though, that Osborne would have seen the folly of his policies. Too busy fixing the roof while the sun shines – at least for the billionaires whose taxes were cut.

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