Crisis may be bigger than Great Depression

Sir, – The number of people claiming Universal Credit has hit historically unprecedented levels.

There were 1.5 million claims made in the first month of lockdown. That’s six times the rate for the same period last year.

The figure would have been much higher but for the UK Government furlough scheme.

This, however, will end in October and it remains to be seen how many of those jobs will be retained. This could be as high as 9 million jobs going.

The persistence of such shocking numbers shows the UK economy is crumbling. This current crisis could be on a scale bigger and more prolonged than the Great Depression of the 1930s.

This may well be on a par with the South Sea Bubble crash of 1720.

Redundancies have spread well beyond the industries initially impacted by the pandemic.

Distress for those out of work has been compounded due to delays of up to six weeks for the first payment of Universal Credit.

The economic incompetence of the

Conservatives has led to this Covid-19 induced crisis.

Beginning in the 1980s they off-shored all the high skilled manufacturing jobs. These were allowed to go to China and India. Wages were suppressed in order to support a bloated financial sector. State assets were given away.

The financial sector then collapsed in 2008 and required a bailout.

This meant the UK economy would be vulnerable to an unexpected pandemic.

In their desire to get the UK economy going again the Tories have shown utter disregard for public safety and the health consequences from the coronavirus infection.

The current economic depression shows there is a deep structural crisis occurring within the capitalist system.

Covid-19 was the trigger. Governments around the world have responded by propping up financial markets with unlimited taxpayer cash.

Capitalism offers no way out of the current crisis.

Alan Hinnrichs. 2 Gillespie Terrace, Dundee.