With the appointment of the Governor of the Bank of England, the Chancellor of the Exchequer confirmed that he was determined to ensure that the economic situation of the UK continued to worsen. (It is another matter whether the Chancellor realises that or whether it is his intention.) In that respect he has been doing a pretty good job. As predicted and expected by any sane person, the government actions led to a double dip recession and a growing debt.
Incidentally it would be interesting if the politicians, especially those in the government,published information how their financial situation changed since 2010 (the general election), or actually since the end of 2008 when the economic mess - which was an easily predicted result of actions of the financial industry - became omnipresent in the UK. If their personal financial situation improved - unlike the financial situation of the country - this would show that the politician have been acting in a conflict of interest situation as they have a personal vested interest in worsening the economy. As the UK economy deteriorates, they are becoming better off. Is it not great? The same applies to all the commentators but they are not elected and they do not wield a direct power.. (At very best they would not have a vested interest in not worsening the economic situation of the UK.)
We should not ignore that. Apart from statistically insignificant exceptions, people act for their own and their families benefit. And there is nothing wrong with this provided they do not act in a conflict of interest situation. And this is precisely the same lethal problem as a moral hazard. "no skin in the game", which clearly was one of the reasons that drove the financial industry to a behaviour that caused the current crisis. We should have been wiser by now.
