In the three years of Coalition government, the taxpayer has been losing money hand over fist as the state sells public assets for less than they are worth, and buys private assets at more than they are worth. In just the last week we have seen the the undervaluing of Royal Mail shares and the state guaranteeing EDF Energy twice the market rate for energy produced by their new nuclear power stations. Is the UK government stupid, corrupt, or both?
According to the National Audit Office, The UK National Debt rose by £850bn as a result of the 2007/8 Bank Bailout. This is almost twice the nation’s total annual budget. For this amount, the UK could have funded the entire NHS (£106.7bn a year) for eight years , our whole education system for twenty years (£42bn a year) or provided two hundred years of Job Seekers Allowance (£4.9bn a year). The taxpayer was not consulted in this matter. The public were told two things:
The economy would collapse if the banks were not bailed out They were buying assets which would later return value to the public purse. It was an investment in our future.
Firstly, as Iceland has demonstrated – allowing bad banks to collapse and their criminal executives to face the consequences, does not have to crash your economy.
Secondly, a closer look at what has actually happened to our ‘investment’ in those failing banks reveals that we were mis-sold the bailout, as we were mis-sold PPI and Interest Rate Swaps. The Bailout was nothing more than the government colluding with Banks to privatise profits and socialise losses.