The next financial crash
Sir, – To those who remember clearly the slow, but inevitable, course that the global economy took from 2006 to 2008, Suzanne Lynch’s article reflecting on the current state of the US economy hits with a worrying sense of deja vu (“Ten years on from Lehmans: Could the 2008 crisis happen again?”, Analysis, September 8th).
Anybody thinking that GDP growth is indicative of a sustained economic dividend for all is deluded. Banks have returned to the bad habits of old, facilitated by the unravelling of regulations, and although many western economies are showing increased growth, most of the wealth being generated is ending up in the hands of the well-off.
This top-heavy economy has all the ingredients for a crash, it’s just a question of when.
Increasingly, social protections such as supported housing, health and education, which allow the majority to then spend their earnings in local economies, are being stripped away and commodified. Working parents are struggling to provide a stable environment for their families as evidenced by the increasing numbers seeking charitable assistance to put food on the table and to stay in their homes. Politicians are happy to continue peddling the GDP delusion as opposed to a more socially indicative metrics as it better suits their narrative. We have been here before but continue to ignore the lessons. – Yours, etc,