Socialist Worker
Socialist Worker

Take the banks from the bosses

No more public money without public control


As economic recession tears into Britain, millions of us spend our nights fearing for the future. More than half of all workers are worried that they might be on the dole by the end of the year.

Despite this, Gordon Brown has made it clear that working people are not his priority.

The government will not be offering us any chances to have our debts cleared. Instead it is the bankers who are again to benefit from Brown’s charity.

This week the government offered guarantees of up to £200 billion to lenders who think their debts will not be repaid.

Brown hopes this will encourage the banks to lend more money to people and businesses.

But there are no guarantees that his plan will work. Even as the government announced its plans the largely state-owned Royal Bank of Scotland lost 70 percent of its value.

Brown’s latest handout follows last year’s £287 billion cash injection – the “radical” action that was supposed to put an end to the banking crisis. Yet even after receiving such sums, the banks continued to refuse to lend on the scale the government had hoped for.

Bank bosses insist that they must be allowed to run “their” businesses without interference, even as they suck up more public money.

Yet this will lead to a deepening of the crisis. Instead, Brown should replace the directors of all the banks that have taken public money with representatives who are accountable to the public.

At the very least the government could insist on an end to the threat of home repossession and debt collectors. Doing so would mean we get ­something in return for billions of pounds of our money.


Article information

News
Tue 20 Jan 2009, 18:49 GMT
Issue No. 2135
Share this article



Related


Tags



Mobile users! Don't forget to add Socialist Worker to your home screen.