Given the option of putting money in the pocket’s of those who will spend it or passing it on to the Banks in the hope that its simple availability will persuade businesses to grab some of it and invest in products that no-one has the money to buy must be the stupidest thing I’ve ever heard. Especially when many major businesses literally have a stack of cash they have no intention of presently investing – for example BAE systems has a pot of £3bn but is still making workers redundant and closing sites such as its Tank factory on Tyneside down.
That though is what Chancellor George Osborne and his merry Cabinet colleagues have decided is the way out of the current crisis. This, of course, is a worldwide one but it should not be forgotten just how much involvement Britain’s banks had in making it so or how Osborne has attempted to benefit his class by getting the poorest to pay for it through his austerity programme of wage and job cuts, pensions changes and welfare reforms. The problem of course now for Osborne is that the whole system is threatened with toppling over.