Past Recessions - what were your experiences?

auximinies

So far this has been the phantom recession - it hasn't physically affected most people yet beyond the news stories and the mega cheap sales in the shops.

A comparison to previous recessions does need to be made:
1. VAT. Dropped 2.5% for 1 year. Lamont put VAT up 15% to 17.5% to pay for the changeover from Poll Tax to the Council Tax. Thatcher put VAT up from 8% to 15%. Why was such a fuss made this time?
2. Interest Rates. Soon to be zero. Were double digits for the whole of the 80s over 15% for several periods
3. Inflation. Dropping towards a couple of percent. North of 10% for much of the 80s.
4. Unemployment - heading for 2m with a prediction of a possible 3m by the end of 2009. We had sustained 3m unemployed for most of the 80s

With respect to my Conservative friends (and unlike many of you I do respect your views) I think a lot of people remember large swathes of the country being decimated by mass unemployment and industrial ruin. Mass repossessions and unemployment with those on the dole/streets being told "yes it hurts, yes it works" and "non, je ne regret rien" by the Chancellor. Cameron's policy of letting the recession run its course reminds people of the last recession. They'd rather take a punt on spending cash to try and save jobs and homes than have people on the streets. And its not like we're broke anyway - we entered this having 60% less government debt than Germany (and yes that includes PFI and Northern Rock exposures) - and the Germans have spent more than we have!

PasturesNew

HenryWeston wrote: »

I used to like that :beer: can you still get it ?

Not looked for it or noticed it.

I just googled it, it seems it was 4% coffee and 26% chicory. Looks like you can still buy it.

Here's an MSE thread about it, including a drink recipe that some might want to try:
http://forums.moneysavingexpert.com/showthread.html?t=837761

PasturesNew

fc123 wrote: »

I didn't think we had benefitted from the boom...I just thought we were doing well.....but looking back I think we may have afterall...and there's me thinking it's because I was hardworking and smart.;)

Bankers thought that, City workers thought that: I am paid well/done well because I am smart and worked hard.

The difference is you have an actual talent and you make things. They can't.
People who produce something or help to move those things are more useful than bankers.

themanbearpig

auximinies wrote: »

So far this has been the phantom recession - it hasn't physically affected most people yet beyond the news stories and the mega cheap sales in the shops.
!

We havn't actually entered into the recession actually. Things have got pretty extreme considering that IMO!

Conor_3

auximinies wrote: »

So far this has been the phantom recession - it hasn't physically affected most people yet beyond the news stories and the mega cheap sales in the shops.

There's a large percentage of the working population in my area who will disagree with you as much of the local workforce was employed in the caravan manufacturing industry or related industries.

lcharm

I was only a little boy back in the late 80's early nineties but what I do remember is that my old man had several properties including an petrol station under his belt. He sold the petrol station with a good profit at the turn of the decade, but his other businesses and properties (office blocks) were not doing so well as companies were losing money and couldn't afford to lease offices anymore a bit like now! He said it hit him quite hard and had to sell everything off and didn't get a good price for it!

Sapphire

NewHouse wrote: »

Could I ask those who have been through a recession (or more than 1), what the intrest rates went up to at it's worst?

I am too young to have lived through a recession and I thought my job was safe as I, unfortunately, work for the government but even that isn't guaranteed any more with a programme of office closures and centralising work. I have now taken out ASU insurance as things are getting a bit too close to home for my liking.

I remember about 15 per cent. Since I had not taken out a huge mortgage I barely noticed the increase in the interest rate. (I'd taken out a mortgage when you were only allowed to borrow 3 x your salary and wasn't out of work at any stage during a recession.)

I did notice the effect on my (relatively small) savings, though.

In answer to another of your posts, it was the BoE that raised rates, followed swiftly each time by the mortgage companies. I remember at one time receiving letters from my building society it seems like every few weeks, advising of rises in their rates.

geoffky

16% of 25k in not a lot but 8% of 250k is one hell of a lot and a lot of people dont work that one out...you are paying far more now as the figures were so much smaller..in the olden days.

bo_drinker

I agree and a lot don't see it. 4% rate with a 1% rise is a kick in the teeth compared to 15% rate and a 1% rise.

[Deleted User]

15->16% means your mortgage rate went up by 6.25%
4% - 5% = 20% rise.

Hell of a difference if you've got a big mortgage (like every first time buying in the last 3 years does)