BBC: Radical Economics – Escaping Credit Serfdom

The following BBC Radio ‘Analysis’ program discusses the ‘financialisation’ of the economy and the rise of credit serfdom. It doesn’t get to the root of the issue – the fact that when banks create almost all the money as debt, then it’s inevitable that the vast majority of people will fall into ‘credit serfdom’ – but it does have some interesting comments that are outside the mainstream (superficial) economic analysis.

Listen here: http://www.bbc.co.uk/programmes/b00y6qtb

Two of my former professors (from the School of Oriental and African Studies in London) are on the show. However, I’d probably disagree with them on solutions. While they advocate more regulation and state involvement in finance, it seems to me that most regulation fails. I’d prefer to set a foundational structure for the banks where they live and die by the sword, so that if they screw up, they disappear (like any other business), and that the people who stand to benefit from an investment also take the risk (rather than passing it on to the taxpayer). What is needed is actually for the government to implement our proposals and then completely withdraw taxpayer-support for the banking sector.

Add a comment below to discuss the show.