Truesee's Daily Wonder

Massive Riots: Britain Today, America Tomorrow?

Raymond Bonner

The Atlantic

Aug 9 2011, 2:28 PM ET 

 

The real causes are more insidious. It is no coincidence that the worst violence London has seen in many decades takes place against the backdrop of a global economy poised for freefall. The causes of recession set out by J K Galbraith in his book, The Great Crash 1929, were as follows: bad income distribution, a business sector engaged in "corporate larceny", a weak banking structure and an import/export imbalance.

All those factors are again in play. In the bubble of the 1920s, the top 5 per cent of earners creamed off one-third of personal income. Today, Britain is less equal, in wages, wealth and life chances, than at any time since then. Last year alone, the combined fortunes of the 1,000 richest people in Britain rose by 30 per cent to £333.5 billion.

Europe's leaders, our own Prime Minister and Chancellor included, were parked on sun-loungers as London burned. Although the epicentre of the immediate economic crisis is the eurozone, successive British governments have colluded in incubating the poverty, the inequality and the inhumanity now exacerbated by financial turmoil.
   
...Watch the juvenile wrecking crews on the city streets and weep for all our futures. The "lost generation" is mustering for war.
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London's riots are not the Tupperware troubles of Greece or Spain, where the middle classes lash out against their day of reckoning. They are the proof that a section of young Britain - the stabbers, shooters, looters, chancers and their frightened acolytes - has fallen off the cliff-edge of a crumbling nation.

The failure of the markets goes hand in hand with human blight. Meanwhile, the view is gaining ground that social democracy, with its safety nets, its costly education and health care for all, is unsustainable in the bleak times ahead. The reality is that it is the only solution. After the Great Crash, Britain recalibrated, for a time. Income differentials fell, the welfare state was born and skills and growth increased.

That exact model is not replicable, but nor, as Adam Smith recognised, can a well-ordered society ever develop when a sizeable number of its members are miserable and, as a consequence, dangerous. This is not a gospel of determinism, for poverty does not ordain lawlessness. Nor, however, is it sufficient to heap contempt on the rioters as if they are a pariah caste.

One of the most tragic aspects of London's meltdowns is that we need this ruined generation if Britain is ever to feel prosperous and safe again. If there are no jobs for today's malcontents and no means to exploit their skills, then the UK is in graver trouble than it thinks....

Financial crashes and human catastrophes are cyclical. Each reoccurrence threatens to be graver than the last. As Galbraith wrote, "memory is far better than the law" in protecting against financial illusion and insanity. In an age of austerity, there are diverse luxuries that Britain can no longer afford. Amnesia stands high on that long list.