UK Food Banks originate in 2008 with Finance Capitalism Tony Gosling on Ian Collins

The Destiny of Civilization: Finance Capitalism, Industrial Capitalism or Socialism Paperback – May 2, 2022
by Michael Hudson (Author)

This book is based on the lecture series on finance capitalism Michael Hudson presented for the Global University for Sustainability. The book explains why the U.S. and other Western economies have lost their former momentum: A narrow rentier class has gained control and become the new central planner, using its power to drain income from increasingly indebted and high-cost labor and industry. The American disease of de-industrialization has resulted from the costs of industrial production being inflated by the economic rents extracted by this class under the system of financialized monopoly capitalism that now prevails throughout the West.

The book explains why the U.S.-China conflict cannot simply be regarded as market competition between two industrial rivals. It is a broader conflict between different political economic systems – not only between capitalism and socialism as such, but between the logic of an industrial economy and that of a financialized rentier economy increasingly dependent on foreign subsidy and exploitation as its own domestic economy shrivels. Professor Hudson endeavors to revive classical political economy in order to reverse the neoclassical counter-revolution….(read more)

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UK Food Banks: Origins in the 2008 Bank Bailouts and Finance Capitalism

In recent years, the rise of food banks in the UK has been a cause for concern for many. The fact that so many people rely on charitable donations for their basic needs, such as food, speaks volumes about the state of poverty and inequality in the country. However, few people are aware of the underlying roots of this issue, the connection between the establishment of food banks and the 2008 bank bailouts, and the broader issue of finance capitalism.

To shed light on this topic, prominent journalist Tony Gosling appeared on Ian Collins’ show to discuss the origins and causes of the growing reliance on food banks. Gosling argues that the roots of this issue can be traced back to the financial crisis of 2008 and the subsequent bank bailouts. The crisis had devastating effects on the economy, leading to mass unemployment, austerity measures, and stagnant wages. As a result, many families and individuals found themselves struggling to make ends meet.

One of the consequences of the financial crisis was the tightening grip of finance capitalism, a system where the financial sector becomes increasingly dominant in the economy. With the government pouring billions of pounds into saving failing banks, the focus shifted away from supporting ordinary people who were suffering the most. This led to a lack of investment in social welfare programs and a rise in poverty levels across the country.

As financial institutions recovered, many individuals and families were left grappling with the long-lasting effects of the crisis. Savings were depleted, job opportunities diminished, and the cost of living continued to rise. The strain of these circumstances pushed many to the brink of poverty, and some had no choice but to turn to food banks for assistance.

Gosling highlights how the rise of food banks is a symptom of a deeply flawed economic system. Finance capitalism prioritizes profits over people, widening the gap between the rich and the poor. While the banks and the wealthy seemed to recover from the crisis relatively unscathed, ordinary citizens were left to bear the brunt of the consequences.

The fact that food banks have become an essential service in the UK shows the failure of the government to address the root causes of poverty and inequality. Rather than tackling the structural issues that perpetuate financial hardship, successive administrations have relied on short-term measures and charitable initiatives to alleviate the suffering of the most vulnerable.

Gosling’s analysis brings attention to the urgent need for systemic change. Addressing the root causes of poverty requires a shift away from a finance-dominated economy towards one that values human well-being over corporate profits. It necessitates government policies that prioritize social welfare, fair wages, and comprehensive support systems for those in need.

While food banks continue to provide a crucial lifeline for many, they are not a long-term solution to the underlying issues at play. It is time for the UK to confront the failures of finance capitalism and demand a more equitable and just society. Only then will we be able to eradicate the need for food banks and ensure that every citizen has access to the basic necessities of life.