I went to work at Monoux in 2007. I left a grade 1 (outstanding) college in amazing financial health for a grade 3 (requires improvement) college with ropey finances. It was like stepping back in time further than when I had started at NewVIc in 1993 – Monoux’s systems in 2007 were ones that would have been unacceptable in 1993. Why did I go? A massive promotion with a hell of a lot more money, which I needed as I was now buying flat on my own.
One year later – a year I hoped that I would look back on at the end of my career as most gruelling and difficult of my career (it was worst to that date but it has been beaten half a dozen times since) the financial crisis happened. I vividly remember driving home and realising when the first news was announced that we were in for a disaster. Usually I drove home round the North Circular, but an accident meant I had gone the back way through Leyton and Stratford. I was on the roundabout in Maryland when I heard it. This track came on after the news.
I had become pretty good at forecasting financial disasters. In the days of the first dot.com boom two people I knew were heavily into the shares (I had no spare money, so it was not a game I had any skin in). One of them I worked with and refused to get out, doubling down by mortgaging her house. The second one listened to me. I knew her far less well, but she told me that she had put her life savings in dot.com stocks and the money had doubled already. I advised her to take out her original investment and put it in safe blue chip investments, that way she would always have it. Also, to decide at certain points to take out more money, so she would have a profit. Fast forward and the dot.com boom collapsed, the first lady lost it all. When I saw the second lady she was incredibly grateful as she had tripled her money. She had lost a load too, but only even more profit. I am not a genius – every crash in history (1929, the Dutch Tulip disaster) has been preceded by non experts believing investment is a one way bet.
In 2008 I realised that this was going to screw the country for a long time, and it has. 2020 and we are still caught up in the aftereffects of this disaster. Austerity, ultra-low interest rates and squeezed public services. We spent billions bailing out banks but there are less services for public health, the elderly, schools funding is (in real terms) lower than it has been for over 20 years and Sure Start centres and careers services have all gone.
This has had a terrible impact on society, especially as the cuts that were made always impacted on the poorest and those with least voice to protest. We could save banks with billions but have forced the most vulnerable in society to live on scraps. The Conservative government talks of shirkers and frauds, yet benefit fraud costs less than 1% that tax fraud does. When you have a society that ignores the circumstances children start in it is just storing up problems for the future.
Children born in poverty, to parents with low educational attainment or mental issues, or in “chaotic” circumstances are being hobbled in their chances to succeed (not that there aren’t incredible success stories from some children). This has consequences for everybody as it means society pays the cost later in their lives.
I am an accountant, but it is ridiculous that for Treasury purposes building roads or houses is capital spend and can legitimately be paid for by borrowing. Training and paying teachers, social workers and medical staff as well investing in early years support for disadvantaged kids is not. Thus it is subject to government spending rules and a target to be cut when money is shorter. The stupid thing is that paying for these things would save money in the long run. A society is as strong as its weakest.
I can’t say I predicted all of this in 2008, but I knew we were fucked. Hopefully we don’t screw the next generation as much in the aftermath of the 2020 crisis. They are going to have a hard enough time anyway.
But I expect we will.
Sex On Fire















