What’s going on?
Our economy is unbalanced: money flows towards property and an oversized financial sector, sucking money in from the rest of the economy.
So while HOUSES, land and financial assets are worth more and MORE, people’s time, WORK and ideas are valued LESS. As homes get more and more expensive, some people’s houses make more money than the average person.
With INVESTMENT in the productive economy DOWN, WAGES are too. So we’re stuck with a HIGHER COST OF LIVING. This means people can’t save as much, and have to go into MORE household DEBT, so they can keep affording things.
It all leads to an unbalanced and unstable economy.
We are told we can’t afford the things society needs like green energy, affordable housing, and better schools and hospitals. But at the same time financial markets have never been wealthier.
The only real winners are the people at the top. The top 1% have more wealth that the other 99% because this way of growing the economy does very little for most people: it doesn’t create jobs, build anything or invest in things that society needs.
The rest of us lose.
Giving us huge generational, geographical and wealth inequality.And a broken society.
Why is this?
Because of the way our money and banking system works, more and more money is flowing to the financial and property markets, instead of to the real, productive economy.
82% of money from bank lending goes towards property and finance. At the same time, the Bank of England is also pumping £70bn into the financial markets through a policy called QE.
All of this money gets stuck, pushes up prices, but doesn’t find its way to the productive economy.
What can we do about it?
The government and the Bank of England have powerful tools to reshape the money and banking system.
They can:
- Work together to make sure new money goes towards productive sectors, and investment in jobs and wages
- Change the rules so that banks can’t lend so much to property and finance
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