Socialist Worker

The rich start to panic

Issue No. 2316

The media is full of dire judgments on the state of the British economy. Mervyn King, the Governor of the Bank of England, says nothing is going to get better fast. He admits the recovery will be “a long, slow process”.

The latest figures show that the economy has shrunk for the last nine months. Britain now produces 4.8 percent less than it did at the start of the crisis—and government debt is running at well above £1 trillion. Manufacturing shrank at its fastest rate in over three years last month.

Now even Britain’s millionaires are losing faith in a government made up of their peers. Millionaire Monitor, a regular survey of the super rich, found that three out of five say the economic situation in Britain is worse than last year. Some 52 percent of them have lost confidence in chancellor George Osborne.

The only way Osborne could claim he had a way out of the crisis was to base his forecasts on the unlikely assumption that the eurozone’s problems would quickly be resolved. This didn’t convince anyone.

Now Cameron says austerity may be necessary until 2020. But it won’t be austerity for their rich friends. Instead there will be more attacks on ordinary people’s living standards. We need to show them that we are not going to pay for their crisis with our jobs, pensions and futures.

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What We Think
Tue 14 Aug 2012, 17:44 BST
Issue No. 2316
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