A GROUP which wants the chancellor to direct “new” money at ordinary people rather than the financial system has been campaigning in Bournemouth.
Members from Positive Money – which was set up in the aftermath of the 2008 financial crisis – hold a presentation in the town tonight. (MON NOV 14)
The group says Bournemouth would have gained £1.3billion if £445bn of new money, created through “quantitative easing”, had been distributed evenly across the population. It says the Bank of England’s decision to put the money into financial markets had disproportionately benefited the wealthiest five per cent of the population.
The Bank of England announced in August that it would create £70bn to be injected into the financial markets after the vote to leave the European Union. This was on top of £375bn of “new” money created from 2009-2012.
Positive Money supporter John Fitzpatrick, from Bournemouth, said: “It’s absolutely unbelievable. While Bournemouth struggles with cuts to local services, the government and the Bank of England are presiding over a policy which makes the rich even richer.
“It’s time they spent money in a way which benefits everyone – including us here in Bournemouth.”
The Positive Money petition calls on chancellor Philip Hammond to instead support investment, jobs and incomes. It says the money could be given out to ordinary people, used to fund a tax cut, spent on housebuilding or invested in infrastructure such as hopsitals and schools.
Positive Money researcher Frank Van Lerven said: “Instead of directing new investment into infrastructure, businesses and jobs, the bulk of this money remains trapped in the financial sector or flowed into property. This has merely inflated asset and property prices, and enriched the owners of these assets.”
It has been reported that Mr Hammond will unveil a move away from quantitative easing (QE) in his autumn review on November 23, in favour of a more traditional focus on taxation and spending.
George Freeman, the chairman of prime minister Theresa May's policy board, said recently: “Theresa has been very clear that this model of the emergency QE package, bail out the banks, stabilise the economy has had a very profound effect on the distribution of wealth. Those with assets have done very much better than those without.”
Positive Money Bournemouth recently took its campaign to the Square and will be giving a presentation on Quantitative Easing at Box 44, 16 St Michael’s Road, Bournemouth, on at 7.30pm. All are welcome.