The Decade the Rich Won

Episode
Episode One
Broadcast Info
2022 (59 mins)
Description
The government and the Bank of England take drastic action to save the UK economy in the aftermath of the 2008 financial crisis. Insiders from the world of finance tell us how decisions made to solve the crisis allowed them to ‘make out like bandits.' From bailing out the banks to pursuing a faster, deeper austerity than any other country, Britain’s policymakers shatter the status quo in a desperate bid to save the economy. With first-hand accounts from key players, the episode takes us inside the room when the big decisions were made. Governor of the Bank of England Mervyn King tells us, ‘the massive amounts of money that were put into the banking system, none of this would ever have been done for other kinds of companies ... this seemed deeply unfair and it is deeply unfair. It created that sense of anger which continued way beyond the immediate end of the financial crisis.' To get the economy moving again the Bank of England and US Federal Reserve pump billions into the economy in a giant experiment - known as Quantitative Easing. Alistair Darling recalls the high stakes decision: ‘it was a shot of adrenalin and when we introduced it. I believed it would last for a couple of years and that’s it.' Andrew Huszar led the Fed’s massive QE programme in 2009, telling us: ‘it felt as if any day we could actually break the financial markets... the level of money printing that the Fed was doing to try to deal with the crisis and to try to help was incredible.' The policy has far reaching consequences. Private equity boss Guy Hands explains the impact that QE has for those working in finance: ‘the Government just poured enormous quantities of money into the system. The money had to go somewhere and it increased the value of assets.... So all of a sudden those of us in private equity... got incredibly wealthy.' But it isn’t clear that QE is helping the average citizen. Huszar says, ‘for the amount of money being spent it was a very small percentage that was actually getting out and making a difference in the lives of everyday people.' Deputy Prime Minister Nick Clegg recalls an extraordinary conversation soon after entering government in 2010: "I remember... a sort of expressionless Treasury official saying to me very calmly: ‘Deputy Prime Minister, the toxic debts of the British banking system are five times the size of the whole British economy?' And the blood drained from my face.' The newly elected coalition government tackles the deficit by cutting spending - and public anger begins to spark. Rosie Rogers is furious: ‘my brother who has severe autism got a letter saying that his benefits were being cut dramatically and I just remember thinking ‘why is my brother essentially paying for this crisis caused by a bunch of bankers?' She goes on to co-found UK Uncut. The Occupy Movement grabs headlines around the world. But many accept that austerity is necessary. George Osborne says, ‘there’s a real sense of unfairness that you have a banking crisis, quotes, "caused by the bankers" and the whole country’s suffering, but the truth is you’re telling people a lie if you say ninety nine percent of people can be better off if we punish the one percent... the maths doesn’t work.' With the economy still struggling, policymakers turn to QE again in 2011 and 2012. Guy Hands says, ‘When one looks at [the] effect it’s had, those with assets have obviously become wealthier... I think an active decision was effectively made to support those with assets’. Describing his motivations, Osborne says ‘that’s what the policy is designed to do and it feels unfair because the people who don’t have [assets] aren’t getting the benefits of the policy. But ultimately I [concluded] it’s better to try and keep the economy floating rather than let everything crash.' Nick Clegg describes his disappointment with the effects of QE, ‘I was in favour at the time, strongly... I think it’s obvious now that ... [the] consequences have not been as positive as I would have liked, and I still ask myself ‘What else, you know, could have been done in those, in those circumstances?' Leading populist figures tell us how falling wages and rising inequality are feeding anger in countries around the world. Steve Bannon says, ‘just look at the math, you’ve had the greatest concentration of wealth in the history of the world on people’s backs and... it’s unfair and I would say it’s actually evil.'
Genre
Economics; Business Studies; Politics; Government

How to cite this record

The Open University, "The Decade the Rich Won". https://learningonscreen.ac.uk/ou/search/index.php/prog/241263 (Accessed 10 Jan 2025)