I live in the UK, are we in a recession?

Question

I'm confused about what's going on. I mean, clearly things are bad but the government isn't telling us anything.

I'm from a middle class family (not trying to show off, just a fact) and we can't afford to buy anything other than food at the moment. My dad's wages have halved, but I'm just glad he still has a job. My friend's parents were both made redundant and she's really scared because they had no money before.

Is this a recession? I know next to nothing about economics.

And how much longer is this **** going to last?

I'll be really grateful for any answers :]

Answer 1

well, its really a matter of who you ask, some economists say that we are, some say we're not, although the actuall definition of a recession is 3 consectutive quarters of negative growth in the economy , and that hasn't happened yet. so technically no we arent, not yet anyway.

Answer 2

Technically we're not in a recession, but effectively we're entering one. All the signs are there.

What can we expect? More of the same. How long will it last? At least a couple of years, maybe five, possibly longer. We need to adapt to our new situation.

Read up about the 1930s and be grateful that we now have a welfare state that will stop people starving on the streets. Yes it will hurt us financially, but we're all in the same boat, and if we stick together to protect the weaker members of society, no one need suffer unnecessarily.

Answer 3

i dont know but the government should help people !!! gordon brown is the worse prime minister ever! he hasnt done nothing yet. hes just talks and doesnt do nothing.

Answer 4

Technically, a recession needs to last for two quarters of negative growth in order to be called a recession (if we want to get very technical about it).

However, I will be very surprised if we don't fall into one. When normal people, such as you and I, feel the strain of the economic slowdown, and economies all over the world are affected, this is clearly an indication that we are heading for a recession, and are experiencing the types of characteristics that go with a recession currently.

I don't know how much longer this **** is going to last (and that's the only word I can think of to describe this situation), but things will get worse before they get better. Sky News is saying practically everyday that the economy is constantly slowing down, and basic commodities such as food, oil, gas have increased dramatically. If this isn't a recession, I don't know what is.

Answer 5

I have the same question as you...

When will it end???

Its very very  scary indeed. :(

NeatEye x

Answer 6

I am not economist, i hang around with my friend who is studying economics at uni, she always talk about all this recesssion and nasty economic things.

As far as i am aware, it will be like this till end of 2009, things will start to get better beginning of 2010.

Answer 7

I think the recession might mean a few good things for the ordinary man in the street. It might mean all you talented lazy people might get off your doorsteps & actively engage the job market instead of buying things on credit card all the time.

Calculated risk is ok but buying something when you know you dont have the means to pay for it just stupidity. Wake tf up!

I'm sure every single one of you has an idea or ambition you would like to accomplish. But you are unsure of how to go about doing it.

That's where the power of democracy might be in the future, instead of just agreeing with what is force fed to the people every day.

IMAO

Answer 8

yes,even Ireland is,but its much cheeper to live in England,contruction here is gone out the window,and we are paying through the nose for foods and rent but at least the goverment gives  us enough to ive on,but it will pass.don,t worry.

Answer 9

No we are NOT in a recession.  To all those dimwits who say we are....you are wrong!

The country is still growing and making money.  Therefore we are NOT in a recession.  Thats simple economics.

Things may not be as good as before but whilst the economy continues to grow, then a recession is the wrong word to use.

Answer 10

sorry you are finding things scary. unfortunately downturns are an inevitable part of every economy, growth, and even capitalism in itself. everything can't keep growing without something slowing or giving. for those of us who are old enough, the 80's come to mind.

even though many people seem to throw insults at gordon brown, can i assure you, it is not just a gordon brown issue. the whole globe is feeling the pinch. i had assumed at the onset that the emerging markets in asia and africa were slightly shielded due to their age, but even they are beginning to feel the pinch.

the whole world is interlinked (massive growth in specialisation - each economy producing what its best at and buying from the rest from outside). as we get smaller (increased accessibility) and travel and trade with each other more, effects of downturn in one are quick to impact the other.

most importantly, i need you to understand that technically we are not in a recession.

governments also don't take lightly the decision to annouce these things. i'll tell you why.

economies are sustained to a large extent on public opinion and perceptions. once there is increased uncertainty, people suffer lack of economic coonfidence, stop spending, and companies suffer lower purchases, they cut staff hours or make many redundant, which then worsens things. if people are still confident, they'll spend, buy, plan, invest, save, etc and things keep "ticking over".

despite the higher inflationary trend (rising prices), many still continue to do well. i suppose its time for many to develop themselves, retrain, diversifiy, relocate and get more creative. i have friends who are confident enough to be buying houses even in the last week, opening small businesses, working from home, etc. i am self employed and hasn't noticed any changes in demand, though i agree prices have gone up. later this year i'm opening a youth leadership training enterprise and a preschool chain in an african country. actually i came online to look for volunteers and gap year student to help out for the 1st 3 months.

on the other hand i have friends whose businesses closed over a year/2 years ago, due to competition intensifying. so redundancy is not a new phenomena.

you are more aware and scared because the press is making so much more noise (which can be unhealthy), and its closer home. but loss of jobs, etc has always existed, even in economic bouyancy - as companies out source, get more mechanised, merge, or try to keep shareholders and stock market happy, with quest to declare higher profits.

from a humanitarian platform, think of the many who live in conditions worst than this for a lifetime and have children born into a seemingly hopeless state.

not only are we much better off, but we also have a welfare net around us. as long as this is not abused, it supplies some help, all be it minimal.

we need to get creative with our spending and earning. so i'm trying to spend more wisely, and focusing on needs (and not wants), shopping around more prior to purchase, etc. we all need to take our spending patterns more seriously. if we develop the habit of spending less and saving more, we'll be less affected by downturns, because we have a surplus to tie us over.

be assured gordon brown might not be as charismatic a prime minister, but he was the best treasury handler we have had in this generation. whilst blair led affairs, he led finance!  he has consistently balanced the economy and stemmed a downturn in the uk for a reasonable period. i believe a downturn is not in their interest and are doing all they can.

it is a global issue!

Answer 11

"but the government isn't telling us anything."

Erm, maybe if you picked up any broadsheet news paper at any time then you'll see the government are very good at giving out information.

Answer 12

Unfortunately if we aren't in one just yet, we will be really soon. I think the government aren't telling us anything because they don't want it to be 'real' just yet if you can understand what I mean. People in your situation are quite lucky really, look at it this way, middle class people normally have a decent amount of disposable income and now that prices have gone up that disposable income can cover your increased bills and food but the lower classes similar to myself don't usually have a disposable income in the first place and now that everything has gone up, where do we find the money to cover it all? simple - we cant! I think it will take at least 5 years for us to recover back to where we were last year.

**EDIT** oh, and noway do the government give us enough to live on, if you are in London maybe seeing as though those single people on £20,000/yr get full housing and council tax benefits and those up in the north with a family of 2/3 children and a wage of a mere £11,500/yr dont get didly squat! I saw an article in the paper the other week, it said that to be able to 'live' each person needed at least £13,500/yr for food/bills/clothes/nights out/etc  geee, how nice that would be!

Answer 13

We are being controlled by the Illuminati who want to reduce the worlds population, and destroy the 'middle' class family.

The are doing this by 'liberalising' the global economy.

ie. we get paid less, taxed more, charge more for basic services, and they have engineered a global food shortage .