Officially in recession

crash123

HAMISH_MCTAVISH wrote: »

You can't have a sustainable recovery in the UK economy without a sustainable recovery in the UK housing market.

When house prices are still down markedly from peak people don't feel comfortable spending money ( the "wealth effect"), when house sales transactions are down massively from normal levels (even pre boom levels) there is a knock on effect into associated services such as home goods retail, etc, and when there is little mortgage or development finance available and we build only a fraction of the houses we need, then the construction industry is stuffed as well, unemployment is higher, etc etc etc.

How many times have I mentioned this....

you have mentioned it many times but I think this is the new norm not the credit binge we had before. People have to get used to it.

Graham_Devon

HAMISH_MCTAVISH wrote: »

How many times have I mentioned this....

Like a broken record.

Doesn't put any weight behind it though. To bring GDP levels down to simply buyig and selling houses to each other at ever increasing prices, is just poor.

Graham_Devon

Ed Balls does his utmost to look serious....with a hint of cheshire cat
http://www.bbc.co.uk/news/business-17841683

It's ALL osbournes fault. ALL of it.

IronWolf

Why is " economic growth" so important? Why do Labour think its better to borrow money and waste it in order to create false "economic growth"?

I'd rather have a balanced government budget and a substainable economy than one inflated by large government taxes and spending.

Out,_Vile_Jelly

Lordy, that means we have to put up with Ed Balls' insufferably smug mug everywhere today. Just what the nation needs.

andy.m_2

suburbanwifey wrote: »

Go play mind games with someone more educated.

Edited in jest, but to respond to a sensible question in that way makes out that you don't have an answer rather than you chose not to use it.

Conrad

chucky wrote: »

It's going to be a struggle to continually keeping on using the excuse that it's the fault of the people previously in power as we have an economy that is 2% points smaller than in crisis year 2008. That's pretty unique compared to other major economies.

About 10 European economies are in recession. Why, because thier debt and public sectors are too large to be supported by thier wealth creating private secotrs.

We need drastic action to cut debt, cut the public sector and watch resources get realigned into the wealth creation sector that funds public sector income.

We need a war on regulation too.

We also need to understand the rest of the world no longer wants to fund the European fearther bedded entitlement social contract. You afterall buy cheaper Chineese made tyres and clothes, then why on Earth would you expect them to want to pay high prices for goods made by greedy British people demanding all sorts of employee benefits such as long term paternity pay?

The Govt are too timid.

coastline

So after 5 years we are still struggling with economic growth..and today I hear output is 4% ?? below what it was in 2008..??
Politicians of all sides seem obsessed with the budget deficit...and its blamed for everything....yes I know it needs to be tackled....but what about a strategy for the UK...have the current government got one to lead us forward...
We hear of improving the manafacturing base...but is it happening...I've no idea....at a guess politicians are hoping the economy just turns itself around...doen't matter whos in power..
For 2 years we've had Cameron blaming Labour...now its the Euro...what about looking at what we need or could be done...we're still a wealthy country..
Yesterdays news on the budget deficit after over £20bn worth of cuts the budget has only been cut by £11bn...means a long road ahead...probably 5-10 years before balance..
Thats the reason I suggest we divert attention from this and start looking at what we are good at..
The national debt has been rising every year despite the statements that the Tories are the masters of money...infact under their power it rose from £100bn to nearly £400bn..thats treble..
Since Labour...no different....£400bn to £800bn...then the financial crisis...now over 1 trillion..
We need to focus on our skills and think positive...but I'm sure its going to be gloom and doom in the media..

michaels

And the reason the current economic policies have been persued is that given the starting poing following the last election the choice was sustained rebalancing or an immediate big bang meltdown.

Option 1 no growth for 5 years.

Option 2 30% cut in GDP in 1 year followed by growth for the next 4 years.

Are you advocating option 2 which would have been the result of the govt continuing to run up debt on a scale that was clearly unsustainable and ending up with IMF imposed austerity?

Or may be there is option 3, buy as many tickets as possible in all the foreign lotteries?

chucky wrote: »

The reason the UK has performed differently to other economies is because of the current economic policy or should we blame the current economic policy on somene else and not George?

StevieJ

At the risk of cheering at the funeral.

Shortly after the figures were released the CBI reported that business confidence among manufacturers was at its highest for two and a half years. Until the surveys are reflected in the official data, however, that looks like small comfort

.http://economicsuk.com/blog/