The Bank of Mum and Dad

Your article on the Bank of Mum and Dad (“Cash & kin”, July 23) pinpointed the new basis of wealth in this country, a situation not prevalent here since before World War II. Understated in the story was the reason: our laissez-faire economics policy, which hands power and influence to those who already have capital. In such highly unequal societies as laissez-faire-ism breeds, it is very hard to go from a poor upbringing to wealth.

This process has been as entirely predictable as lamentable. And stupid. Countries with higher tax takes, such as Denmark, Sweden and Norway, tend to have more wealthy, productive economies than those with lower taxes, because the social and infrastructure investments they make, in social safety nets, healthcare, education and public transport, create the circumstances for strong economies.

Countries that focus on cohesion and long-term planned development, such as Singapore and Japan, have not just lower inequality and greater ease of home ownership, but higher levels of happiness and, wait for it, much higher incomes than us, and less crime. Of course, these things flow one to the other.

Instead, we have poverty, especially for children, low wages for a huge proportion of people, totally unaffordable housing, low levels of happiness and high levels of stress. What a bungle we have made of governing.

It’s past time for us to return to social democratic values, reward work adequately,

power up our