I'm no economist but here's a few causes of the recession, what do you think?

Question

1. 2 costly illegal wars

2 corrupt gov

3 rising taxes to fund the above resulting in less expendable cash which has a knock on effect on the high street,leading to cut backs in jobs, lower profits, and a recession, THE GOV IS TO BLAME

Answer 1

Yes. You are correct. You are no economist.

You seem to be entirely ignorant of happenings in the rest of the world.

Such as: record fuel prices, food prices, commodity prices.

Wake up! The rest of the world is striving to achieve levels of affluence that only privileged people such as you and I used to enjoy.

And recession? There is, as yet, no recession.

Answer 2

the current "recession" can be traced to the big American banks selling mortgages to poor people with little hope of paying them back..

if one person defaults on their mortgage - they are in trouble.

if millions default on their mortgage - the bank is in trouble

then it has a knock on effect.. the banks tighten up lending.. people hear talk of "recession" in the news so stop spending their money -adding to the stagnation..

blah blah blah

Answer 3

Gordon Brown and no one else is responsible for this situation. Everyone knows it's his f*ck up and his p**s poor handling of the economy.

Answer 4

Bollocks  Its world wide     not confined to UK  .  the whole world is in recession.  And they are not involved in the things you quote...

Answer 5

Well I am, so I'll mark your homework:

1) Correct.

2) Incorrect.  There may be plenty of noses in the trough but the government itself doesn't cost us much compared to things like the NHS

3) Incorrect.  The recession is caused by the Americans fighting their wars on credit instead of increasing taxation to cover the cost.  The US Treasury has milked the money markets causing the credit crunch.

4) A further problem is the West's reliance on China to provide manufactured goods.  Now the Chinese have loads of Dollars, Pounds and Euros, a new middle class is growing up and they want food and oil causing a worldwide shortage.

Answer 6

No, the causes of the recession are possibly the current war in Iraq but the real causes have been a loss of liquidity as foreigners have withdrawn money from the American economy.  The recession was inevitable, but the timing was not.  The particulars have been the banking crisis, which triggered the oil crisis, but foreign lenders have extended credit at very low rates to Americans for a very long time.  In a way, America has been the world's banking system.  If a bank is at risk of being insolvent, everyone leaves.  Everyone is just taking their money back.

Answer 7

I think you should stick to flipping burgers.

Answer 8

Not really. The link below shows you the UK Government's spending very simply in a pie chart.

http://budget2008.treasury.gov.uk/where_...

1) Wars

Defence is only £33 billion - which is big, but isn't major.

2) Corrupt Goverments

I have to disagree with you on this one. Yes, we have had all these revelations about MP expenses etc.. but there are very, very low chances of there being corrupt politicians at all. Besides even the worst MP expenses scandals are only for £20-30,000 each - which is basically the equivalent of the Government hiring one extra worker each year among it's millions of jobs.

3) The rising taxes have not been used to fund wars and the "corrupt government". Expenditure has mainly increased on social security (unemployed benefits, police..), health and education. But your fundamental idea is correct - consumers have less money in their pockets these days, which leads to all these things.

But the reason why we all have less money is mainly because of rising inflation, which has been caused by

a) rising fuel prices + petrol prices

b) rising FOOD prices (because of petrol prices increasing and bad harvests)

Answer 9

Yeah our government wastes so much cash its untrue billions each year are wasted instead of helping the economy to grow

Answer 10

You  missed out the following, Gordon Brown, probably the best chancellor of the exchequer ever, and Alistair Darling, the second best .

Answer 11

Recession is due to over production ,which is not supported by effective demand.The income is not sufficient to purchase the produced or supply.This may due to many reasons

Cost of production has resulted in prices that makes goods and services unaffordable

Slow down of investment due to lower profitability

Products became out of date/ot of fashion.

Compettion from China,Japan ,India whose products are cheaper and shrinking of market due to prosperity elsewhere.

Production technique has become out of date.

Govt polices becoming less investor friendly

The current awareness of ecology,environmemt pollution etc making it imposible to start new industries etc.

If you really think clearly find out that the illegal wars ,intervention keeps the Arms Manufacturing Industry in US booming.Perhaps the recession would have been more intense if there was no war.