Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://secure.socialistparty.org.uk/issue/451/5399

From The Socialist newspaper, 10 August 2006

Sinking under a debt mountain

"ANOTHER DAY older and deeper in debt" goes the lyric of the 16 Tons song. Unfortunately, this is an all too accurate description of personal indebtedness in Britain today.

Latest figures show repossessions and debt levels are at a 15-year high with a record 26,000 people becoming insolvent in England and Wales during the second three months of 2006 - a 66% increase on the same period in 2005. The number of personal insolvencies is expected to exceed 100,000 by the end of the year.

But while the high street banks were complaining of having to make provision for more bad debt, they were less vocal about the huge rise in bank profits this year. Barclays, for example, notched up a staggering 37% increase in profits for the first half of 2006, raking in a massive 3.67 billion. In fact, the profit per customer at UK banks rose 13.3% in 2005 to 75 from 66.20 in 2004.

The recent decision of the Bank of England to increase interest rates and a likely further increase later this year will increase the cost of borrowing and push up mortgages and other personal debts. And as the growth in the economy has largely been fuelled by the property market and consumer spending, the signs of a looming recession are becoming clearer.

The hike in oil prices, pushing up inflation and dampening consumer spending, is already having a big impact on cooling the five-year long US property boom, which has been largely responsible for economic growth. Some 43% of all the jobs created in the US between 2001-2005 were in housing construction.

A recession in the US and Britain will further tighten the screws on workers' living standards as the bosses attempt to make us pay for their crisis.

Donate to the Socialist Party

Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our special coronavirus appeal.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 


In The Socialist 10 August 2006:


War and terrorism

Israel out of Lebanon now!

Afghanistan - NATO troops face a resurgent Taliban

Iraq - a country splitting along sectarian lines

Huge protest against the invasion of Lebanon

Police given licence to terrorise


Socialist Party NHS campaign

Fighting to defend the health service


Socialist Party campaigns

Young = exploited

Tommy Sheridan's victory over News of the World

Sinking under a debt mountain


Socialist Party workplace news

DWP: Action gets results

Lincs firefighters fight cuts

Inspiring film of GAMA struggle


 

Home   |   The Socialist 10 August 2006   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Debt:

triangleLebanon - mass protests cut across sectarian division

triangleNHS debt so high it can't be repaid - so don't pay it!

triangleMass movement topples governor of Puerto Rico

triangleTheresa May admits tuition fees system is broken - but plans new attacks on students

triangleWhat lies behind the US-China trade war?

Banks:

triangleThem & Us

trianglePrince Andrew outrage exposes establishment

triangleKarro Foods victory Hull

Reports and campaigns

Reports and campaigns

22/5/20

Obituary

Mick Cotter 21-9-57 to 20-5-20

22/5/20

Rolls Royce

Strong union response needed against job cuts

20/5/20

NSSN

Organising to fight for workplace safety

20/5/20

CWU

Postal workers' action results in double victory for union

20/5/20

Peterborough

Posties walk out in Peterborough after manager tests positive

20/5/20

Covid

Johnson claims workplaces safe but HSE cancels inspections

20/5/20

Protest

Safe protests against Tory corona chaos continue

19/5/20

Hull

Trades council debates workers' political representation

18/5/20

Coronavirus

Communities condemn Tory handling of crisis - with safe protests

18/5/20

Coronavirus

Contract tracer speaks out: Tories' plan is outsourced chaos

18/5/20

Coronavirus

Parents - Organise against 'back to school' plans that threaten everyone's safety

13/5/20

West Midlands

West Midlands trade union activists discuss the battle for safety on the front line

13/5/20

RMT

Transport union RMT tells members: refuse to work in unsafe conditions

13/5/20

Boris Johnson

Johnson's plan terrifies me - readers react to lifting lockdown

13/5/20

Housing

Starmer in full retreat over C-19 rents crisis

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 07748 534 891

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 077 0671 0041

ABOUT US

ARCHIVE

Alphabetical listing


May 2020

April 2020

March 2020

February 2020

January 2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999