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Economic Impact of London Riots

(27 Posts)
LemonDifficult Tue 09-Aug-11 01:05:24

Does anyone have any insight into the financial impact of the London riots? From what I can see, this mess doesn't look cheap to clean up.

Lawlessness on the streets of Europe's financial hub. How is this likely to play out in the domestic economy? Is it likely to have any impact on how we're viewed abroad?

befuzzled Tue 09-Aug-11 01:06:49

I suspect it is actually an indirect symptom of the already dismal financial situation. Wondering more about impact on the Olympics.

LemonDifficult Tue 09-Aug-11 01:09:55

But when the stock market opens tomorrow, won't they have to take into account the enormous impact on life in the capital? Sony's main distribution warehouse is on fire - or is this all just a very, very, very mini blip when looked at against Italy's debt crisis?

breadandbutterfly Tue 09-Aug-11 01:17:22

Of course it will have a major impact - on tourism, on businesses relocating here, on foreigners buying propery here as an investment (well, there's a silver linng), not to say the huge cost off the clean up itself.

Of course it was going to happen; a society that is all about material goods and me-mme-me, and where communal respect and cooperation have gone... Trouble is, to bring that back, even if possible, will take a decade or two. And a leadership from above that is entirely lacking.

befuzzled Tue 09-Aug-11 01:20:44

and a society with such a huge underclass - that judging by the news coverage tonight, many people were seemingly unaware of (how?)

fargate Tue 09-Aug-11 01:24:25

If, the snow, spring heatwave, Japanese tsumami, Royal Wedding, whatever have had such a negative effect on the economy - I can't imagine that this major [?nationwide] civil disorder won't have a significant impact.

It is preventing people going to work, wrecking/destroying small local businesses, costing large companies millions [tesco, currys, pc world etc] plus the cost of policing, local authorities etc etc

Seems desperate to me.

nepkoztarsasag Tue 09-Aug-11 01:31:42

What these events show is the importance of:

- cutting public spending;
- cutting police numbers;
- cutting so-called public investment in "deprived areas";
- cutting spending on social services and local government;
- ending the featherbedding of public sector workers (fire, police, NHS, youth workers).

The way to address them is:

- doing away with the punitive 50% income tax;
- reducing corporation tax;
- eliminating unnecessary regulation on financial services;
- letting the Big Society flourish.

I thankyew!

breadandbutterfly Tue 09-Aug-11 01:34:17

Quite. Anyone who thinks that it is saving money to cut basic services in already deprived areas needs their heads seeing to.

madhattershouse Tue 09-Aug-11 01:37:27

Ahem...nepkoz I think it was exactly these policies that have fuelled the disparity between the have and have nots that is causing this!! The "big society" only works when the richer help the poorer..that is simply not happening, many groups who help the disadvantaged have had the funding cut or removed. How can the 50% income tax rate have any baring on people who get less than £1000 p/m before tax and struggling???

breadandbutterfly Tue 09-Aug-11 01:40:16

I think it might have been irony?

fargate Tue 09-Aug-11 01:41:32

Police officer just told me "we can't cope. We have passd breaking point" #londonriots

Poor bastards.

CocktailMumma Tue 09-Aug-11 02:48:28

We as a nation will pay for the fall out from all of this! In our future taxes and in the highstreet as retailers increase prices to cover costs as no insurance will cover riots.

As for the Olympics - well we are already one of the most hated nations of the world. I dont think the Olympics was ever going to change that. Infact I think next years Olympics is a great opportunity for all of our enemies to stage a massive, public and vile attack on us all, sadly.

LemonDifficult Tue 09-Aug-11 07:45:05

When the market opens this morning it must reflect this, surely? All those small businesses being literally taken to the wall by thugs.

teta Tue 09-Aug-11 07:55:41

The initial impact will be that large numbers of people will have no jobs to go to today.Certain sectors of the city that have been damaged won't be repaired and will be abandoned.These areas won't be recolonised by new businesses.Businesses will pull out of the local areas and will relocate to shopping centres where there will be some protection.
International businesses will withdraw out of the uk.No companies will want to create jobs for the workers here.The uk is already seen as a place where people don't like working.The police will become powerless due to constant criticism and lack of numbers.Racism will increase-particularly to the black population sadly.
This feels much worse than the 1980's riots.I lived in Toxteth than when i was in uni.I felt there were valid reasons then for the trouble.I found it very difficult to get a job in the 80's and just took anything available to earn some money.I don't think people are prepared to do that now and large sectors of the population are unemployable.Judging by the mobs last night these individuals have no respect for anything or anyone.Least of all their families or the police.

LemonDifficult Tue 09-Aug-11 10:55:09

Read a report that 750 people were at the Enfield depot. Seems high, but whatever the number those jobs have been burned.

DamascusRose Tue 09-Aug-11 11:30:10

nepkoz - the longer version...Unfortuately we cannot look else where at riots/ demonstrations blaming theirs on their societies and government decisions and then only blame ours on thugs. Humans are drive to striven to meet three levels of need - basic, psychological and self-fulfillment needs, in that order (Maslow).

Individuals who have not had their basic needs met in terms of food, water, warmth and rest particularly over long periods due to deprivation etc can not feel secure in society. Currently a lot of people living on the edge or at the bottom of society are feeling the full impact of the current government policies - how can you think you can cut EMA and propose a higher rate tax cut and scraping maternity benefits and not alienate the poor? How can you hack the phones of the very people you pretended to defend or steal money on expenses and not alienate the great British public?
The second basic need is security and safety and at the moment none of us are feeling that whether in the terms of further education and employment or in terms of the current riots. Many people do not feel safe now, but many peoplenever feel safe within their communities and lack a sense of belonging and friendship, so whilst some make take an evening class or join a youth club, others will join formal or imformal gangs. The second level of psychological need is related to self esteem, which unfortuately for a lot of us = materialism. This has lead us to take out inflated mortages and then furnish our homes with designer goods on credit cards and second mortages. Yet these very people may sneer at the same motivation driving youths to own blackberrys and designer trainers. We were told that greed is good - they are acting it out.

The final human need is self-fulfillment - achieving ones potential - people were suprised on the TV this morning that there was rioting in Ealing! How many families in Ealing (and elsewhere) are waiting for GCSE and A level results - in the shadow of huge student debit even if the kids have worked hard - Big Society in the USA appears to work on one level due to bursaries and scholarships set-up for foundations and individuals - we have a huge number of millionaires and multi-millionaires in the cabinet - any of them endowered a college or course?

niceguy2 Tue 09-Aug-11 11:37:32

Nepkoz. I'd have more sympathy if the rioters were protesting and fighting against the "machine" but so far they seem more interested in breaking into stores to see what they can grab for themselves.

This is not as a result of austerity. This is just mob mentality because they can. I guess you could argue against the wisdom of cutting police numbers but I don't think those have been affected yet. (I could be wrong). Since you can't actually make serving officers redundant.

What does scare me however is hearing on the news that actually we don't have any troops we could deploy even if the situation deemed it necessary. Apparently they're stretched that thinly in Afghanistan that we could even muster a few thousand squaddies to get to London.

teta Tue 09-Aug-11 12:51:32

Damascas Rose-please tell me that the 'youths' rioting are starving,thirsty and don't have a bed to sleep in at night?PLEASE?.For goodness sake what a load of twaddle.God,if i read one more post from someone who's done gcse psychology or has a manifesto allied to the socialist workers party[not mentioning any names ]i will explode.angry

teta Tue 09-Aug-11 12:52:49

LemonDifficult really?.

pommedechocolat Tue 09-Aug-11 13:08:59

I am confused about the blaming of the tories here.

The tories have been in power a year or so.

These kids did not become capable of doing this in the last year or so. They have grown up in a labour government and they are the product of that government.

Little shits who think they can have and do whatever the fuck they like. Everything handed to them on a plate and no respect for authority. If any political party needs to take the blame then the softly softly plenty of money Labour party must take that blame.

CogitoErgoSometimes Tue 09-Aug-11 13:49:18

@DamascusRose... Maslow's need hierarchy? My, we have been paying attention in our psychology foundation courses. Yes, this is about gang culture but the motive is mob rule and greed, not some sort of cry for help. Up to now we've only been aware of these people when one of them gets stabbed or shot or some innocent bystander gets caught in the cross-fire. Now they're getting bold and, thinking they can't be touched, they're robbing shops and torching cars... with the local thickos joining in thinking this is a good way to get a free I-Pad

inkyfingers Tue 09-Aug-11 15:22:26

one part of London not affected is the city - where the whole problem is believed to have started. No one's demonstrating or acting together to make any sort of political point. It's just arson, mugging and 'help yourself to boxes of new trainers' at shops mainly owned by local people who probably aren't making a lot of ££ at the moment, serving and employing local people.

fargate Tue 09-Aug-11 16:44:09

I noticed that, inky. On the interactive google maps of London riots theres a little blank circle where the city lies.

No Footlockers, Game, Debenhams etc in the square mile??

maypole1 Tue 09-Aug-11 20:19:50

breadandbutterfly any one who thinks these chavs should have anything more needs their heads read

Now the leftys are see in the result of allowing people to breed whist never fearing working or having to support their own family

The result the children of these parents feel you should get something for nothing and that you don't have to work for anything

These children are not poor, poor people don't have smart phones worn £200 or latest trainers

Poor people are in somila and walk 10 days for a scrap of food
Years of trying to placate these people buy giving away benefits and bigger and bigger housing weever ever they decided to have more kids has got us were ungrateful brats

The cuts are nothing o do with this i got post a list of 100 free things to do in London with kids right now

maypole1 Tue 09-Aug-11 20:25:19

DamascusRose

Only in the UK could rioters in £100 trainers organising things on their £300 smartphones claim to be in poverty!

How the little children suffer

Maybe they should take all the stuff they robbed and start a charity

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