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What was so special about the 1980s recession?
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No, but I've been through a few recessions to know not to spend spend spend when times 'appear' good.
I think they are allowed to blow their first paypacket are they not
I know I did 
to think about before running off spending their first ever earnings on silly things.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
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I admit I did too. Doesn't mean we cannot encourage the next generation to think before spending though.
Needs to be developed in childhood, if you can teach the magic of compound interest to your children I predict they will never be poor, they may end up a boring scrooge though :eek:'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Entertainer wrote: »In this recession, drop in GDP will exceed the early 80's when this current quarter's figures come out and will indeed be the deepest since the 1930's.
I agree and for those who may be wondering why the current recession will be worse than that of the early 80s, it's neatly summarised in the following extract from an article by Martin Wolf in the FT:
As the World Economic Outlook notes in an important chapter, recessions that follow financial crises are unusually severe. So, too, are globally synchronised recessions. But now we are living through a globally synchronised recession that coincides with a huge financial crisis that emanates from the core countries of the world economy, particularly the US. This is a recipe for a long recession and a weak recovery.
Those who hope for a swift return to what they thought normal two years ago are deluded.0 -
The two recessions were very different. The present one has more in common with the early 1990s recession but with added difficulties. What in Torygraph speech is 'In contrast to today, the pound was relatively robust against the dollar during the 1980s recession, remaining above the $2 mark' was in reality a grossly overvalued petrocurrency which wiped-out large sections of manufacturing and export industries. Some of these were weak or lame ducks, but many others were not and would have survived with a different economic policy. And even if you think it was Howe's crude monetarism rather than the recession and mass unemployment which reduced inflation, that gain was shortlived as Lawson let prices rip by the late 1980s.0
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At the risk of spouting ill informed and meaningless nonsense... oh the hell with it.. can I just say "It's different this time".0
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In the present case the figures are truly horrendous. I don't recall the debt from previous recessions taking 30 years to pay off - and the government figures for the present recession are incredibly optimistic.
Previous recessions effected certain areas of the economy. High inflation led to high interest rates - which was good for savers. This time very low inflation has meant pain for savers and yet houses are not selling and house buyers are still having severe difficulties. This time around everyone is feeling the pain.0 -
dealsearcher wrote: »In the present case the figures are truly horrendous. I don't recall the debt from previous recessions taking 30 years to pay off - and the government figures for the present recession are incredibly optimistic.
Previous recessions effected certain areas of the economy. High inflation led to high interest rates - which was good for savers. This time very low inflation has meant pain for savers and yet houses are not selling and house buyers are still having severe difficulties. This time around everyone is feeling the pain.
Houses are not selling for two reasons
1) People are not putting them up for sale
2) The banks will not lend the money to buy them with 'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
3) The sheeple know they are going to be cheaper tomorrow.0
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