I’ve just finished reading Sebastian Faulks’ new book, A Week in December. It’s not quite Birdsong but it’s pretty good. Something I found fascinating was his explanation of how John Veals operates his hedge-fund, and John Veals’ own reflections on how his business operates. Among other things, he notes that cause and effect have been decoupled.
I have previously talked about this breakage of the relationship between action and result. So for all the discussion this weekend about whether or not banks are ‘socially useful’, I think that there is a fundamental misunderstanding of the changes that we need to see.
Let me explain… I’ve just been listening to the 6pm news, where I heard that for the first time since records began in 1993, more debt has been repaid than has been taken out. Now, personally I think this is a good thing as some people (and especially the government) have been spending more than they can afford. At the moment, the government is spending over £4 for every £3 it gets in. That cannot be sustained. But the commentary on the news said something to the effect that the only way out of a recession is to spend.
I think you can argue about that, but that’s not the purpose of this post.
All those people who’ve been paying back what they owe (and well done to them) have recognised that you can’t live on credit forever. They took a decision to act in this way despite the government’s encouragement to continue spending. They judged their circumstances and acted accordingly.
Their personal responsibility is a refreshing change from a government policy that seems to want to bankrupt everyone personally as well as the nation.
No related posts.
Like you I was delighted to see this happening. When the message from the Government is ” Do as we say ” clearly many households have finally taken responsibility for themselves and their finances. In an age when no one appears to be responsible for anything, this is a most refreshing change. The Government has clearly abrogated its responsiblity in this area for its own benefit