The
Tata steel redundancies are not inevitable. The government could forestall the
loss of 500 steel industry jobs in Scunthorpe, Teesside and Workington; and it can do
so without waving a magic wand, or for that matter throwing 'tax-payers' (or,
yours and my) hard earned at the problem.
Tata
complains that the markets for its product, steel, is shrinking mainly because
not enough houses are being built. There is a massive shortfall in affordable
housing in the UK. There are also hundreds of thousands of building workers
without work. The economy, despite misreporting by the government, is barely
ticking over.
A
programme of mass affordable house building would put construction workers back
into work, thus pushing up the demand for steel.
But that
would only be the start. When people move into new houses they tend to buy
carpets, curtains/blinds, furniture, wallpaper, paint; they have new kitchens
installed and bedroom cupboards built; back gardens are decked out.
Oh look! A
burgeoning economy. Not only do we have hundreds of thousands of workers
building the houses we have furniture, white goods, TVs, sound systems, etc
being bought. These need to be manufactured and sold; creating and providing
jobs for hundreds of thousands more workers.
But even
that isn't the end of the upturn. Properly regulated, the extra supply in
housing would help to stabilise house prices, especially in London and the SE
where it is almost impossible for anyone but Croesus to get onto the property
ladder; it would bring down rents; and make a nonsense of the an already universally
derided bedroom tax.