Social Aspects

Credit crunch diary – 21st August 09 – Social aspects

On a few occasions in the past, this diary has logged some of the social as distinct from economic aspects of the credit crisis. Not least, social unrest in China and Russia and more recently the prediction in the UK of a summer of strife through national strikes. Actually, a prediction now a reality with the so called “Royal” Mail service. A new phenomenon has now emerged. One which must have come from left-field to this socialistic inclined administration that, by instinct, has always railed against private education.

A report just published by the Audit Commission, which is a Local Authority watchdog, highlights that 34% of local authorities reported increased demand for school places. A further 34% anticipated higher demand in the months ahead. This result compares to a survey in December 08 when only 9% of councils experienced increased demand.

The increasing demand for school places is attributed to parents now priced out of the independent sector as a direct result of the credit crisis. The report concludes that consequently, some state schools will have to teach children in temporary classrooms. As I relate in my book Derbyshire born, we were taught maths in wooden huts over half a century ago. That was the new wave of Secondary Modern Schools. Ironic really.

This latest Audit Commission report also talks of a “second wave” of the recession and forecast a surge in crime, mental health problems, domestic violence, alcoholism and homelessness. Quite a legacy from the bankers who no doubt passed their maths exams at private school. A further prophecy is that while many parts of Britain would recover quickly, the most deprived areas could remain trapped in depression and long-term unemployment for longer.

Pearl of the week

“It was all fictitious. It was wrong and I knew it was wrong at the time.”

Frank DiPascali, chief financial officer for convicted fraudster Bernard Madoff, at a US court hearing.