Economics ABC

To summarise.

Governments (various) have aggressively pursued policies that encourage home ownership. Of course some people cannot afford to own one home while others can afford several. Markets are wonderful like that. Luckily, those with several properties lease some of them to people who can no longer find the public housing governments have sold off. Government bad, market good! Of course prices go up as the stock of housing is fairly inelastic. Problem? No. Credit is cheap and readily available. Hurrah for markets!

Everyone is happy. Governments no longer need to provide housing, which is a terrible burden and a distraction from the business of stealing oil, funding opera, and closing hospitals. People have places to live. Of course they don't have any money, but they have credit.

Actually, can I stop there for just a moment? It isn't credit, it's debt. Face it. Calling it credit is a dirty trick played by the rich on the poor. You’re in debt.

Anyway, those fortunate to live in their own homes.

Actually, can I stop again? Your house is owned for 25yrs by a bank, banks, finance company, finance companies or myriad combinations of the above. It isn't your house until you've paid for it. But, as long as you keep up the payments you'll not be evicted. Hurrah for markets!

Anyway, if you have a house, or rather the massive debt your place of residence represents, you have wealth. You can use the wealth you have created to get more credit - sorry, debt - to buy things like iPods, Guitar Hero and Childcare. High-five the market!

Childcare is an interesting one. Along with housing, pensions and medical care it is something best left to the market. Market good, government bad! Of course and as with houses the market will push the price up – there is only so much childcare to go around and people will keep breeding. Stingy parental leave and high house prices mean both parents need to work in order to afford to live where they want to and have a child. Of course most of the second income goes towards childcare. If you’re lucky a bit is left over so new parents can afford the odd luxury. Heinz Baked Beans instead of Home Brand, once a month. But with all the lovely credit - damnit, debt - swirling around everyone is happy. Well, contented. OK, surviving.

That is until the largely unregulated credit markets goes tits up. Market good, government bad? You now realise you have no money. You now realise your bank has no money. You now realise your childcare provider, up to their fucking necks in debt no one was keeping an eye, has no money. You have to make your debt repayments. With no childcare provider to look after sprog while you and spouse work your arses off to service your huge debt, one parent must quit their job. Now the household income is too low to cover the mortgage on "your" home. You have to move to Cambletown. The working parent, typically Dad, now needs to travel four hours per day and pay toll after toll after toll just to earn a living wage (oops, forget to mention another thing Governments should not be involved in - transport infrastructure. Market good!) The stress becomes too much, he starts drinking, marriage breaks up and the state, eventually and if your lucky, might step in to offer a little assistance. But probably won't. Maybe it will ensure Dad, now an alcoholic manic depressive, keeps up the alimony payments.

And this is the system we're desperately trying to prop up?

Am I missing something?