The harder things are, the better few are found? “Look at how great Britain was after the war.” The 80s drive defined by greed resulted in inflated property prices funded by an unrestrained banking sector. The economy inflated, however due to the nature of compound interest the banker made disproportionately more than the average person.
Because the economy appeared to be “growing”, things were improving as people basically borrowed themselves into bankruptcy. The property bubble does not deflate quickly. It is a great unwinding that could spread over generations. As long as there is a pressure of demand over supply, prices will hold. But if housing falls behind the increases in population, and we achieve precisely what the Right objects to most. The modular commodification of our “experience”.
Liken it to the taught crisp sail in the wind and you see the objective of economics. To harness a drag that equates to a sense of process – the hooking up of economic life-rafts to “individuals” instead of to a society – individuals empowered outside the grip of traditions. This is the new Right.
It is trivial when compared to the inherent massive inflation of the modern curse, rampant securitisation. How will a graduate saddled with near permanent debt pay a mortgage and have children? What has created that level of social indebtedness? Is it as deliberate as the libor scam?
Linear thinking about economics pervade. If it is not black, it must be white! If you said Communism was a failure, then what shall we call Capitalism? Well, both are roaring successes for the very richest and instead of serving the population, is is they, whom Governments compete with each other over.
This economy does not deliver to increasingly large swathes of smart people, unless they take risks. When the risk is abject failure the youthful drive will compete with those struggling to stay in the work force. Those who become a slave of the state are a cost to the state. Now we can add those who become victims of the margin spreading as the middle class is consumed by a creeping puddle of poverty. If you suck too much toward the centre, the edges fray but society is no two dimensional circle or even a three dimensional sphere. It is a multifaceted multidimensional and fluid organism with a huge skin and tiny skeleton that adjusts its balance according to a rule book we used to have. Our economic existence had meaning in terms of some correlation between what we did, and what we have.
Then suddenly, we were set on an economic course that allowed disproportionate capital growth. It was as though someone turned up gravity – the banks added the potential for endless fuel and this has caused a collapse of energy into the centre. As the banks made debt almost obligatory and definitely a trap for continuous pouring of human effort into a hole, as they caused a massive inflation in the value of property by lending capital back, setting us up for endless payment, Governments have gotten in on the act, and started to charge our children for their education. What is next, buying a licence to have grandchildren?