ONE of the most infuriating things about the collapse of the command economies in the east is the common presumption that capitalism is the most rational system. But if you are one of those people who clings to the 'old-fashioned' view that capitalism is crazy, then recent news can only have confirmed your views.
Local authorities are to take over the houses of people evicted for not paying their mortgages, and house the homeless in them. Can anyone have thought of a more perfect demonstration of the view that capitalism is nuts?
Home repossessions could go as high as 100,000 this year. On the surface of things this seems illogical; mortgage rates have gone down progressively. The reason of course is the rise in unemployment.
Once Thatcherism launched its all-out offensive against the public housing sector, home ownership became the only viable way to get a roof over your head for millions of people.
But as a result unemployment often means you lose your home.
There is another factor. In the 1980s credit was plentiful and bank profits were high. Now, with people struggling to pay their accumulated debts, banks' profits are down and the banks are getting mean. Robert Maxwell could get away with £3.5 billion debts, but ordinary punters are getting screwed by the banks if they let their payments slip.
Why has the government decided to let these homes to the homeless? Mainly to get the building societies off the hook.
Empty and unprofitable housing stock will now be occupied, and paid for by local authorities.
Poll tax payers are asked to pay for a system which is incapable of solving the basic problem of housing.
● Meanwhile figures from Michael Heseltine's Department of Environment show that council rents are forecast to rise by up to 20 per cent or even more in many areas, with the higher increases falling in the south.
These increases come as a way of reducing government spending at the expense of working class tenants.
● Another piece of capitalist craziness: In the autumn budget the Chancellor allocated an extra £4.5 billion to social security, mainly because of the rise in unemployment. A rational social system would utilise resources to give people productive work. But not capitalism.