Recession

Loughton_Monkey

B_Blank wrote: »

Some say this recession has proved Keynesian ideas to be wrong. You cant just spend your way out of recession if your borrowing costs reach higher levels as a result

Yes, Keynes lived in a time where he couldn't imagine a nation being in such debt.

At the end of the day, it only adds up in the 'political' sense. When there are 'good' times, Government is not spending too much. The wheels are oiled... But when, for whatever temporary reason, or if an election is coming up and GDP is falling, then simple! Pull out all those road widening schemes, new bridges, extra railways, and give the 'working man' something to do instead of scratch his a4se all day at home.

villa2010

Loughton_Monkey wrote: »

The word "recession" is arbitrarily defined as two or more consecutive quarters of negative growth in GDP.

To simplify, GDP is, in essence, the sum total of all our spending.

We can only spend what we earn, or a little bit more if we can borrow.

Up until 2008, we were all spending like crazy. Not fully recognised was the huge additional amount that we also spent, but not deliberately. This was spent, on our behalf, by Brother Brown and best friend Alistair.

When the first 'recession' came, some of us decided not to spend as much - and certainly not if we didn't have it. Brother Brown knew differently. He spent even more of our money to compensate. This appeared to get us out of 'recession'. There was more 'spending', hence more GDP.

Not unsurprisingly, we all continue to spend less and less. Why would we do any different? Some are losing jobs. Some are suffering pay freezes. Some have to pay more for pensions. Others have had their credit cards stopped. All well and good.

Now here's the shocker. That nice Mr Osborne has worked out that it would also be a good idea if the government did not contiune to spend more and more of our money to keep GDP up. In fact he has cottoned on to the fact that we need to spend less.

Phew! That's a courageous idea, isn't it? To stop spending our money, that we don't have in the first place.

So if you and I are going to spend less. And that nice Mr Osbourne has been told by the bank that his overdraft is too high, so he won't be spending, why do we need to be surprised that GDP will fall again?

WOW - A summary of the how we got into recession with no mention of a Global recession and the banks.

Thats right the Global eccomony, Eurozone, inflation, oil rises were all caused by Brown and Downing.

Unbelievable.

Any political bias in this review

:rotfl::rotfl::rotfl::rotfl:

[Deleted User]

i dont think we are heading for a double dip recession,as i dont really believe we`ve got thru the last one yet,despite what the official figures say
as for whos getting hit hardest then it has to be retail as even john lewis have seen profits well down over the last 6 months,its perhaps going to be the worst christmas EVER on the high st/internet trading

villa2010

Plus you can probably blame them for the destroying US Dollar hegemon.

villa2010

woodbine wrote: »

i dont think we are heading for a double dip recession,as i dont really believe we`ve got thru the last one yet,despite what the official figures say
as for whos getting hit hardest then it has to be retail as even john lewis have seen profits well down over the last 6 months,its perhaps going to be the worst christmas EVER on the high st/internet trading

Cool - Def agree is it not stagnation we are in...?

B_Blank

Loughton_Monkey wrote: »

Yes, Keynes lived in a time where he couldn't imagine a nation being in such debt.

At the end of the day, it only adds up in the 'political' sense. When there are 'good' times, Government is not spending too much. The wheels are oiled... But when, for whatever temporary reason, or if an election is coming up and GDP is falling, then simple! Pull out all those road widening schemes, new bridges, extra railways, and give the 'working man' something to do instead of scratch his a4se all day at home.

Plus there was less places to put your money when Keynes was around. Now if an italian doesnt like the look of italian bonds then they can always buy bonds in countries on the other side of the world.

shortchanged_2

OK, these are the facts.

The US economy is in the sh*t, as is most of the Eurozone. Even Germany's economy is starting to show cracks in their recovery now.
China is starting to slow down as well.

The UK was always going to struggle to avoid a double dip recession because of the austerity measures and the deteriorating global situation is making it ever more likely.

The governments and central banks of many of the worlds economies are seriously running out of ideas and are throwing good money after bad.

Now can anyone see any light at the end of the tunnel?

bendix

villa2010 wrote: »

WOW - A summary of the how we got into recession with no mention of a Global recession and the banks.

Thats right the Global eccomony, Eurozone, inflation, oil rises were all caused by Brown and Downing.

Unbelievable.

Any political bias in this review

:rotfl::rotfl::rotfl::rotfl:

Any political bias in this response?

You can attack Loughton all you like but he is one of the smarter thinkers on this site.

Your posts to date demonstrate the understanding of a simpleton.

'Eccomony' !!!!!!. When you know learn the basic words of the debate, then you can come back and discuss it with the big boys.

Rochdale_Pioneers

I was at an IGD Grocery conference last week. Their view on recession was clear - we're in one regardless of the 0.2% in 9 months growth judging by consumer behaviours. Their chief economist forecasts its going to get worse and stay worse through to 14/15.....

lemonjelly

Ayes to the left, & noes to the right.

Some would argue we need to come out of recession first, in order to have a double dip...:cool: