The real cause of our woes
1:55pm Thursday 11th October 2012 in Letters
WE SHOULD remember the recession was actually caused by the greed of corporations who racked up huge profits by keeping workers’ wages low and by moving lots of production overseas, eg China. The problem of how workers can then purchase goods and services so that profits can be obtained was solved by making easy credit available. Governments also fostered housing bubbles so homeowners could borrow against the value of their homes.
When the US housing bubble burst, banks went bust and the whole rotten capitalist system went into freefall!
Greedy bosses/shareholders and bankers were the culprits as they did not realise the true cost of not distributing the wealth created. Given the above, as bailed-out banks and many profitable corporations are financially sound, why the need for austerity? If we add the billions lost through tax avoidance by the rich to the equation we must conclude that this imposed austerity is being used callously to roll back public services and the welfare state. The latest victims of the Con/Dem government’s class war to be scapegoated are mums on welfare who are to be financially punished for daring to give birth whilst on the dole! Make no mistake, Nye Bevan was absolutely right about the Tories! Terry Banfield, Cardigan Crescent, Cwmbran