Money-go-round

THIS month marks the tenth anniversary of the collapse of Lehman Brothers, the pivotal moment of the 2008 global financial crisis. economists are lamenting the lack of radical change since then and warning of the danger of another collapse.

the fundamental flaw of economics is that it doesn’t assess the real value to society of an economic activity, just its financialisation.

Value is determined by the market — and that depends on consumers, who can be manipulated by vested interests. Yet there is still a widely held view that work should be in the common interest.

Whenever a question arises over the value to society of a proposed change, the Government should take recommendations from a cross-party parliamentary committee informed by experts — as happened with the proposed ban on the sale of energy drinks to children.

If the Government found a recommendation — such as, say, phasing out the sale of tobacco — politically unpalatable, its economists could simply be reminded of the measure’s true value to the country.

GEOFF NAYLOR, Winchester, Hants.