The Fetishisation Of The Market
Regarding public good vs business good, Anna Minton’s book ‘Ground Control’ describes how the urban planning process has been distorted in recent years in favour of business and against the public interest. Large sections of our cities (e.g. Liverpool 1) have now been privatised in order to provide lucrative shopping environments. Undesirables (e.g. young people, old people, homeless people) are excluded through various means, such as the ASBO.
The fetishisation of the private sector knows no bounds. The current Neoliberal Party government is being warned that withdrawing investment from the public sector too quickly will deepen the recession, because the private sector is not ready to take up the slack. One reason for this is because the banks are failing to lend. The proposed solution is more ‘quantitative easing’ – increasing the money supply so that the banks have more money to lend. But the evidence so far shows that banks use any additional money in the system to fatten their own balance sheets and pay bonuses, not to lend, no matter how many times Vince Cable ticks them off.
Wouldn’t it make more sense to miss out the middle-man? If the Bank of England has money to pump into the system, the best way to bring us out of recession is to invest directly in public infrastructure projects such as schools, hospitals, and public transport. The banks don’t need to stand in the middle, taking a cut through interest payments. This model of investment is different from PFI, the Neoliberal Party’s preferred mode of infrastructure ‘investment’ since the time of John Major, but why should the private sector sit in the middle of transactions between the government and the people, syphoning off our wealth and adding no value? The banking system in this country is just an organised form of corruption, and the government is entirely complicit.