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Is the recession over?
WhisperingGhost
Posts: 4,762 Forum Member
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I remember when it was officially announced that the country was officially in recession in late 2008, the constant depressing headlines day after day, the fear that many had about keeping their jobs/homes and being able to keep putting food on the table. It was a genuinely scary time for my family.
Then we had major company after major company going into administration, the benefit cuts, food banks, base rate slashed to 0.5%, etc etc
My main question is, I remember hearing at the time by Gordon Brown that they expected the economy to feel the repercussions of the recession for the next 25/30 years.
Now we are expecting rates to increase again, and we have now officially been out of recession for a while. But are we really out of it ie. is the country as a whole doing better than we were in 2007/08? And what do they mean by saying we'll be feeling the effects of the last few years for the next 25 or 30? How, if things already seem to be getting better after only 6 years? Or were they just wrong and did they miscalculate how long the repercussions would be felt?
I'm not really politically savvy so excuse any ignorant statements or questions asked, I'm just interested.
Then we had major company after major company going into administration, the benefit cuts, food banks, base rate slashed to 0.5%, etc etc
My main question is, I remember hearing at the time by Gordon Brown that they expected the economy to feel the repercussions of the recession for the next 25/30 years.
Now we are expecting rates to increase again, and we have now officially been out of recession for a while. But are we really out of it ie. is the country as a whole doing better than we were in 2007/08? And what do they mean by saying we'll be feeling the effects of the last few years for the next 25 or 30? How, if things already seem to be getting better after only 6 years? Or were they just wrong and did they miscalculate how long the repercussions would be felt?
I'm not really politically savvy so excuse any ignorant statements or questions asked, I'm just interested.
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Are we out of the recession? No, I don't think we are. Despite being told inflation is falling (especially food) I beg to differ.
Some people (myself included) haven't had a pay rise since 2007/8 whilst household bills etc have risen dramatically.
As for feeling the effects for up to 30 years, that I can well believe. The amount of cuts taken to many, many services will have long lasting impacts on a lot of the population.
But that's my two pence worth. Feel free to disagree!
As the economy had been growing since early 2013, the answer is yes we are out of recession
And the effects of coming out of recession wont be felt immediately, same as when we went into recession.
Although I think the effects of this recession will last for decades. Zero/Cost of living wage increases, Zero Hours Contracts, Youth Unemployment at records levels, Public Services cuts. The jobs section in our local paper used to have thousands of jobs in its weekly section, that fell to double figures at one point and has hovered at 200-300 for months. We're not even close to where we were but the rot has been stopped.
As much as savers need it to happen, increasing interest rates could see the whole thing go BANG!
Well wasnt it bank lending that caused the recession in the first place. Perhaps its a bit better to be prudent. unless you looking for another round of bail outs. Cant have it both ways.
Till the next banking crisis starts - so we're okay for about two weeks
So any recovery will be faltering and head over a cliff before the public as a whole feels it.
I think the richer countries are going to continue to decline a bit for a while, while some of the developing nations get richer. Will be interesting to see what happens long term as we approach more global equality. In addition to globalization, technology is allowing wealth to be concentrated in the hands of fewer people while causing middle class incomes to stagnate.
In London and the South East some may not be aware that there was one in the first place.
were just doing the same again, debt is not wealth
the crash will just be bigger this time
You have to bear in mind that the cost of print went up when employers started to move vacancies online. The Sunday Times jobs section used to be heaving too, but it's never going to go back to the way it was. Jobs sections aren't the indicator that they used to be because they're a costly channel.
There is another crash coming as the post 2009 bubbles pop and it will be devastating.
It was banks lending what they did not have that caused the crash. This is why we need to be talking about monetary reform and ditching the fractional reserve ponzi scheme. Too bad there is no mainstream appetite for this which is why we are doomed to keep going down the road of constant boom/bust cycles.
No possible about it. The world is definitely in the middle of tech bubble 2.0 and this proves it
http://www.zerohedge.com/news/2014-07-09/sheer-insanity-no-revenue-company-rises-over-1-billion-today-57k-shares-traded
Probably not only because it is costly and the number seeing it in print is no doubt decreasing, but because online is basically where it's at. The days of seeing a job advertised and dropping a letter in asking for an application form have well and truly gone the way of cds and dvds
Capitalise the profit, socialise the risk, that'll be the legacy of this financial crisis.
In most cases it's cheaper and more effective to do it online, which forced up the cost of print. An employer would need a good reason to put a job ad in the press these days (perhaps high volume local recruitment with a PR message for a new employer in the area, or if they have a good deal with local media) as they can usually get the same result for less investment elsewhere. I can't see the print market recovering as there's simply not the need for it that there was.
world economy still very wobbly. investmentweek.co.uk is predicting another worldwide banking crash ......
That, however, does not mean an increase of standard of living for the significant section of the population which relies on public spending for their income. We have been spending more than we earn for many years - even during the fake boom of the New Labour period - and this has to end. It's a staged reduction with the eventual aim of living within our means, but it was always going to be very painful. There is the same amount of pain to come in the next parliament as the last as we are only half way through.
Those on the left try the denial route, but that ends in a Greek scenario. The truth is often very hard to swallow.
Source: http://www.theguardian.com/politics/2013/apr/06/welfare-britain-facts-myths