The overwhelming cause of homelessness today is down to the fact that homes have been priced out of the reach of many working and unemployed people

Any one watch 'Homes Under The Hammer' here in the UK? At the beginning and end of each renovation local Estate Agents are called in to assess the value of the proprty. Either for sale or rental. It is not unusual for rental return on the investment to be 8%. My cash ISA returns somewhere about 1% if I'm 'lucky'. It's not surprising that those people with enough money invest in property to rent. Investing in property is too good an opportunity to miss as long as Bank interest rates are kept at such a consistent low. Unfortunately this creates a scarcity of property for sale to first time buyers and pressures rental rates upwards.

When interest rates were significantly higher, like in the 1970s, Saving money brought in higher rates of interest, property investment was less attractive to the average saver and it was easier to rent. Obversely, the value of wages was constantly eroded and the result of that was continuous industrial action for higher wages.

You could look at these two examples as extreme swings of an economic pendulum but the financial crash of 2008 was a kind of anomaly that might have thrown a cyclic model completely out of kilter.

The answer to all economic problems is growth. What policies will promote growth?

And don't suggest Keynesianism, Keynes based his ideas on a pre Welfare State Britain. Back then the bulk of Public Spending was to do with defence and administration of the Empire, and that Empire generated revenue. There was the opportunity for the Government to increase it's spending on homeland projects.

Today the bulk of our spending is on ourselves, the NHS, Education and Welfare. There is no spare. We spend more than revenue provides. And forget the mantra that 'borrowing is cheap'. It won't always be cheap as students who are paying off their loans will recently have discovered.

If interest rates went up to just 10% now we could go into a deep and damaging recession. Then we would all know the proper meaning of 'Austerity' as opposed to the 'tough times for some' that we have now.

Back in the 1970s Wilson, Heath and Callahan all knew that wage restraint was not the solution to the inflation / wages rise spiral. All three eventually had to introduce wage restraint and for all three it failed. (More info on this in the 'Turning Points 1979 Election' program). Margret Thatcher had a different plan and, like it or not, it worked (in it's own way).

We need someone with a new plan, not Keynes, not Monetarism but something new. I don't think it will be Corbyn but I have, occasionally, been wrong before.