September 14, 2015

Something wrong with unjust financial system

The Caritas social justice week dvd. was shown in north Wellington tonight. The guys attending reflected on the growing gap between the rich and poor in New Zealand; the urbanisation and decline of provincial towns and the need for rebuilding linkages in communities which build trusting relationships (social capital).

One of the case studies dealt with a vulnerable woman who borrowed money from a loan shark for a washing machine. There is something very wrong with a financial system that allows loan sharks to exploit the poor and vulnerable, which allows bank interest rates of more than 20% when the OCR is less than 3% and which uses taxpayers to bailout owners of large financial companies who made bad business decisions.

The enormous power granted to global banking corporates means such organisations wield more financial power than some governments. The huge and growing tsunami of debt owed to banking and financial companies now threatens the stability of economies worldwide.

We need a financial system that upholds human dignity and promotes participation by all. 

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