Riots in ENGLAND - How did anarchy happen here?

Before...

During...

Union Point: The landmark building in Tottenham has been completely destroyed. As well as the store itself, there were 26 flats on the upper floors

When this happens in undeveloped or developing countries, we proudly tell ourselves, ‘With most systems in place, it will not happen here’. Now that it has, the question is not why but solutions and lessons to be learned, if we are willing to.

Before I proceed, I would like to stress that these are based on direct interpretations of reliable news reports. Regardless, I condone any acts of violence.

Overspending Consumers

It all starts with these overspending consumers who end up debt laden. They overspend before they receive their wages. Most will spend many more times their wages. They overspend to feed their greed and participate in endless material competition. Even during these mass lootings, branded merchandise were targeted (http://uk.news.yahoo.com/exclusive-teen-gang-reveals-looting-spree-041951519.html) much more than rations. When they are unable to pay their outstanding debt, financial institutions will clamp down on them. Since they spend more than they earn, naturally they are unable to pay their debt. Financial institutions will cancel their credit facilities. In worst case scenarios, they may even repossess. They will end up blacklisted.

Over Ambitious Retailers

Retailers will expand over ambitiously when they receive enormous income from consumers who overspend earlier. Once these overspending consumers are blacklisted and unable to spend, there will be a sudden drop of income for these retailers. Retailers will be unable to pay for their expanded businesses’ overheads. As most have overlooked this situation, they will have no choice but to downsize. Outlet closures and staff redundancies are among drastic measures taken as they are unable to sustain. Most of these redundant staff is part of overspending consumers. Like debt laden overspending consumers, again financial institutions will clamp down on them as they are unable to pay their debt.

Overspending Financial Institutions

When financial institutions are unable to collect debt from these consumers and retailers, they will lose too. When overspending consumers spent then, like retailers, financial institutions too jumped on the bandwagon and expand over ambitiously. Naturally they will have to make ends meet by taking drastic downsizing measures like retailers. Again, most of these redundant staff is over spenders.

When losses news of these retailers and financial institutions get out, investors will naturally withdraw. Nobody will be interested in a losing business. Their value will drastically drop until they gain confidence of investors.

Overspending Government

When retailers and financial institutions lose, so will the government. Government will lose on taxes and other revenues. As the government too jumped on the bandwagon, they, like retailers and financial institutions, will also take drastic downsizing measures. Once again, most of these government redundant staff is over spenders. Our present Prime Minister is a Conservative. Coincidentally, as the party name suggests, drastic cuts are made across the board. The government however has a superior advantage. They have the power to force citizens to pay various increased fees and taxes. These increases will hopefully cover some government losses.

Conclusion

Let us summarise. All these results in economic growth that is unable to keep up with increasing population over these years. Overspending consumers are blacklisted and are unable to spend like before. They have been made redundant from the private sector (E.g. Retailers and financial institutions) and the government sector. In this scenario, their benefits are cut, are forced to pay increased fees and taxes and in addition to energy inflation (that is another story) they are unable to make ends meet (http://uk.news.yahoo.com/teens-rioting-vents-anger-authorities-095743298.html). With limited finances, they are unable to spend on most leisure activities to take their attention off issues. With nothing to do and mounting personal pressures, what is the next step? Our current situation is the result. In conclusion, if most live accordingly and do not overspend, I do not see how it will do harm.

All these just made Deputy Prime Minister NICK CLEGG’s Liberal Democrats pre-general election 2010 riots warning statement (http://uk.news.yahoo.com/violence-forces-top-politicians-fly-home-061552369.html;_ylt=Ahi5AnxeBEDj.9h4EFz696LFfMl_;_ylu=X3oDMTM2czQ0ZTcwBHBrZwNhY2Y5YWQ3NC0zMmE3LTNkZmQtYWMyNy1lN2Q0OGE1ODFlMTIEcG9zAzEwBHNlYwN0b3Bfc3RvcnkEdmVyA2I2ZmYyN2QwLWMyYjEtMTFlMC1iZmRlLWVhNTgyNDZlZDQ5ZA--;_ylg=X3oDMTFtOG01NnQ5BGludGwDZ2IEbGFuZwNlbi1nYgRwc3RhaWQDBHBzdGNhdAN1awRwdANzZWN0aW9ucwR0ZXN0Aw--;_ylv=3) under a prospective Conservatives government, a frightening premonition. As his party name suggests, it may be a prophecy we failed to take note. This may be due to our increasing hatred to politicians.  

Bibliography

Reference Cited

DESTROYED IN A DAY: THE BEFORE AND AFTER PICTURES THAT SHOW THE DEVASTATING EXTENT OF THE RIOTS (2011) [Online] Associated Newspapers Ltd. Available from: http://www.dailymail.co.uk/news/article-2025239/London-riots-2011-photos-Before-pictures-devastation.html

[Accessed: 17 AUG 2011]

LONDON ON LOCKDOWN AND CAMERON FLIES HOME: POLICE FACE GANGS ARMED WITH PETROL BOMBS AND POLES ON THIRD NIGHT OF RIOTS AND CYNICAL LOOTING (2011) [Online] Associated Newspapers Ltd. Available from: http://www.dailymail.co.uk/news/article-2023554/Tottenham-riot-2011-London-lockdown-David-Cameron-flies-home.html

[Accessed: 17 AUG 2011]

CAN ECONOMIC FACTOR EXPLAIN THE RIOTS? (2011) [Online] Yahoo! Inc. Available from: http://uk.finance.yahoo.com/news/Can-Economic-Factors-Explain-skynews-3052906705.html [Accessed: 11 AUG 2011]

PM ON COLLISION COURSE WITH POLICE OVER CUTS (2011) [Online] Yahoo! Inc. Available from: http://uk.news.yahoo.com/pm-collision-course-police-over-cuts-091211757.html [Accessed: 13 AUG 2011]

TEENS: ‘RIOTING VENTS OUR ANGER AT AUTHORITIES’ (2011) [Online] Yahoo! Inc. Available from: http://uk.news.yahoo.com/teens-rioting-vents-anger-authorities-095743298.html

[Accessed: 11 AUG 2011]

EXCLUSIVE: TEEN GANG REVEALS LOOTING SPREE (2011) [Online] Yahoo! Inc. Available from: http://uk.news.yahoo.com/exclusive-teen-gang-reveals-looting-spree-041951519.html

[Accessed: 12 AUG 2011]

PM RECALLS PARLIAMENT AS CLEGG BOOED BY CROWD (2011) [Online] Yahoo! Inc. Available from: http://uk.news.yahoo.com/violence-forces-top-politicians-fly-home-061552369.html;_ylt=Ahi5AnxeBEDj.9h4EFz696LFfMl_;_ylu=X3oDMTM2czQ0ZTcwBHBrZwNhY2Y5YWQ3NC0zMmE3LTNkZmQtYWMyNy1lN2Q0OGE1ODFlMTIEcG9zAzEwBHNlYwN0b3Bfc3RvcnkEdmVyA2I2ZmYyN2QwLWMyYjEtMTFlMC1iZmRlLWVhNTgyNDZlZDQ5ZA--;_ylg=X3oDMTFtOG01NnQ5BGludGwDZ2IEbGFuZwNlbi1nYgRwc3RhaWQDBHBzdGNhdAN1awRwdANzZWN0aW9ucwR0ZXN0Aw--;_ylv=3

[Accessed: 10 AUG 2011]