In a propaganda sheet from prospective Wallington local government candidates I read, “cutting income tax has only been possible because we have made the difficult decisions to bring public finances under control”.
Do politicians never consider the facts. We will never move forward until it is widely understood that in 2008 it was not government finances which were the problem. They stood at 52% of GDP one of the lowest of the developed nations, far lower than Germany’s. The problem was the debts of the banks at 328% of GDP which was greater than any other developed nation and wholly unsustainable. The government deeming the banks to be too big to be allowed to fail so took on their debts thereby increasing the government debt. So the crash was directly due to the bankers and their debts.
The banks were only able to create this mountain of debt because successive governments of all parties, starting with Anthony Barber in 1971, removed controls on financial institutions. We will only return to economic sanity if we introduce well thought out controls on that sector.
Sandy Lane South, Wallington
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