The Chancellor of the Exchequer yesterday announced up to 330 BILLION pounds in loans and guarantees, multiple BILLIONS of pounds of support for the whole spectrum of businesses in the country who will suffer from an immediate slow down in trade.
While obviously welcome – the immediate focus on business – parts of society who by the very nature of what they do are at a significant advantage to the ‘ordinary’ person – gives us an insight into true Conservatism – looking out for big Business first and foremost.
Ignoring completely, since the start of this crisis, the individual citizens of the country who have been directly impacted and are really beginning to feel the squeeze, as more and more people lose their jobs. In some ways managing a really tight household budget, paying the mortgage, the car, the house improvement loan, the clothes and shoes for growing kids, the weekly shop… These households do it week on week on tight margins and still sometime manage to have some to save and some left over for recreation. These citizens are micro managers with skill and flair on a daily basis – and I repeat still have a small margin left over – Living within their means.
The support announced yesterday goes somewhat against all that the conservatives have been preaching over the last 10 years – live within our means, cut the deficit, cut the national debt. Now at a stroke they are legitimising poor management of business – businesses who borrow at a massive rate way beyond the limit of sensibility. Some companies debt levels would challenge a small country’s GDP. These companies continue to reward their top management teams with eye watering salaries while the business is ill-prepared for any potential risk that could come along and interrupt the wealth generating machine that they are – but it is a false wealth, it’s wealth built on borrowing beyond their means – its is wealth built not on true performance and reward for success, many of these companies when you take in their levels of debt are not technically viable, but yesterday it’s all made legitimate and the rich will continue to cream off the vast majority of wealth in this country, indeed the British Government is encouraging this very behaviour and rewarding it with ‘great terms’ for even more borrowing beyond their means. Many companies who will get these loans will fail and never re-pay the funds loaned to them, some of them are serial defaulters who sit on a merry-go-round of setting up companies, failing, defaulting and setting up again and again – never held to account for their financial failings – our system of controlling Company formation and Company Directors is laughable beyond a joke.
Like the financial crash of 2008, the reward sits in the pockets of the perpetrators – the banks have done fantastically well out of the 2008 crash and their boards of directors have reaped fantastic wealth beyond the dreams of any lottery winner in the UK to date and all at the expense of the British Tax Payer. The bailout was correct, BUT, much stricter conditions on future payback to the tax payer should have been agreed and for much longer into the future following the bailout. The hard working citizens whose pockets are tapped at every opportunity, directly and indirectly in a multitude of hidden taxes. Their savings are ripped off by financial firms offering tiny returns while continuing to pay themselves levels of remuneration that are in another world. Their investments are stolen by fraudsters who never ever get caught and the scale of this at present in the UK is phenomenal. The authorities involved simply drowning in cases that never get solved in time to recompense the victim.
Clearly no lessons have been learnt from 2008. Wealth goes to Wealth and the so called trickle down – or tiny drip down theory simply is not working. The wealthy are hoarding vast sums of money and sharing nothing.
This time and in this crisis I thought the governing classes would have taken a lesson but sadly not. The support should go direct into the hands of the citizens, a direct lump sum payment to every man woman and child in this country to be used as they see fit to drive the economy or to continue managing their household budgets over the next three to four months. Not the tiny £100 per week, but sufficient to pay their direct needs when their only source of income has stopped. This should be at least at the level of £5,000 to £10,000 – a big commitment a big statement and really doing WHATEVER IT TAKES to help our CITIZENS – Not to help an already fabulously wealthy elite group of individuals in our country – AGAIN. Sadly the citizens are left to drown in a desperate fight to continue paying their daily bills to companies that make a tiny fraction of society wealthy.