We had a visit from a man that works at the Treasury this week who told us about his job and how he helped come with the legislation to help control the banks and the bankers bonuses.
We listened to him describe his role and how he worked to support the government punish the banks for the financial crisis as the Government had to bail them out and change the rules so it didn’t happen again. We also learnt about taxes and how they are good for the country.
We asked him some questions too.
1) What is the most challenge part of your job?
I think the most challenging part of my job is communicating with different sections of the government, as each department wants what is best for them and we have to make a lot of compromises. For example I often have to use reasoning an open-mindedness, just like BNC, to see the big picture to help the chancellor to decide where to put the money.
2) How did the financial crisis effect the government?
Unfortunately, banks were trusted to look after the countries money safely. However they used irresponsible lending and weren’t keeping the countries best interest as heart. So the Governent had to do something called bailing them out, which meant the government had to buy back the banks to give the banks back the money so people could get their money.
3) Where did that money come from?
The Government had to use money from taxes to help buy out the banks. Because this money was used for the banks, other things such as schools, roads and the NHS suffered for a while. We also had to increase taxes, which is why your fact about the financial crisis costing £3000 per person is right. Everybody had to give up more money for taxes.
4) How do you decide where the money goes?
It takes a long time every year to decide where the money goes, there is over 50 billion pounds that has to be shared. Although it might sound like a lot, lots of places also need billions a year, like the NHS. We can never give each department exactly what they want as we have to be fair. It also depends on the area as some places need more schools, whereas some areas need housing or better transport.
5) What is the most interesting thing you done with the banks?
When the financial crisis happened it was very hard on everybody and a lot of people suffered. However, people think that all banks are bad and that isn’t the case, not everyone that worked for them did the wrong thing. It happened because some people were sneaky about the rules and no one was able to tell them off if something went wrong, they had no consequences. I found it interesting looking at safer lending and the banks bonsus system, as not many other companies that such big bonsus’. I got to tour round the country, making sure I spoke to lots of different people to get their opinion before we did anything drastic. Many people who lived in England agreed that if they couldn’t afford to pay something they should be able to get a loan and through this we were able to help the whole country, not just the banks learn how to be better with money.
Our Friend Matt was very interesting and we loved hearing about his job and responsibilities! He said he loves his job because he gets to help billions of people every day and make our country a better place for everyone.
If you have any questions let us know and Matt said we can email him and he will answer them.
Thanks for reading!