Financial merry-go-round

THe bill’s just arrived. We were in yet another Government- created, boom-and-bust cycle long before the pandemic and the war in Ukraine.

The have-nots find themselves even further behind the haves when the music stops.

Governments sow the seeds of inflation when they over- stimulate the housing market with lower interest rates, Help to Buy schemes and stamp duty reductions, resulting in rising property prices.

People are enticed into a spending frenzy, often beyond their income, fuelling inflation. This leads to an inevitable rise in interest rates, causing falling house prices, with the rest of the economy not far behind.

lowering interest rates puts us straight back on the financial merrygo-round. We need to get off this ride, stop using the housing market as the engine room of the economy and produce more goods.

I’s not right that future generations will be saddled with eye-watering levels of debt so we can carry on living beyond our means.

DEREK GRAYSON, Winchester, Hants.