Purchasing power to the people – Could “Covercards” and “Coverdrafts” help heal the Covid crash?
BY CHRIS COOK ON AUGUST 13, 2020
“If debt cannot be paid then it will not be paid”: Professor Michael Hudson’s concise summary of how ‘Peak Debt’ caused the 2008 financial crash not only remains true 12 years later but can be extended to the unsustainable burden of property rentals -“Peak Rent”.
The unprecedented demand and income shocks from anti-virus measures have exposed how high levels of debt and rent have eroded UK resilience. Complacent talk of “V” shaped recovery and a return to normal ignores the wave of rent and mortgage defaults already inundating shops and shopping malls.
To this may be added literally thousands of UK pubs and restaurants on the brink of permanent closure. Meanwhile, sports clubs, museums, theatres, arts venues, heritage properties and other key parts of the UK social fabric also face an existential funding crisis.