British Recession?

Question

Hello, i am a 15 year old girl living in England i have heard about ,and indeed read about, the increasing chance of a british recession. However, as you would probably expect i do not know much about what a recession is, what happens IN a recession, how it comes about and how it is stopped. I have tried to look on the internet but quite frankly i cant understand it! They all talk in terms of economics and such which i can not get my head around. If someone could please explain to me the above issues in terms a 15 year old would understand id be very grateful ! Thankyou.

Answer 1

The economy is classed as being in recession when economic growth,which is the amount of goods we produce ourselves,declines for 6 consecutive months.At the moment the economy is still growing but only just so it's not an economic recession but a slow down.

Answer 2

It's like this: Imagine your father runs a business that brings in money for food, entertainment, pocket money, holidays, etc. Every year, for the last 10 years or so, things have been going swell with it. Sales grew every years by a few tens of thousands of £s, and business expanded a bit each year. Your father feels rich enough to do something to improve the house, buy a new and bigger car, increase your pocket money by £1 or more, an extra holiday and a bit of treats for the family.

THEN, horror of horrors, things start to go wrong. First, his suppliers increased their prices, forcing him to increase his. His customers stopped buying from him as much as they used to. His staff wants more pay. As a result, his business begins to stop growing. In fact, for the last 9 months, it has been shrinking month-on-month. He has cut your pocket money. The work on the new extension has been stopped indefinitely. The new car has gone back to the garage. A few of the bills are piling up. No more foreign holidays. And, worse, your mom has been going to Aldi and Asda instead of Waitrose and M&S for food!

Translate that to the nation, and you have an economic recession.

Answer 3

Hello I am in my 30's and remember a recesion in the early 1990's.

What happens really is people spend less money because they are frightened of how much the gas bill, petrol and stuff will go up.

When people stop buying say, flowers, chocolate and luxury items this has an effect on florists and companys like Cadbury, they then have to loose staff and then these people do not have money. So really it goes in a circle like that.

So less money gets spent, less things are sold and less things are made. This is something that happens every now and then, and it can last for a few years.

Part of the problem is that because more people are out of work during a recession more people are job hunting, so it becomes harde for even skilled people to find work.

At the moment is is affecting small shopkeepers, and people who sell luxury items such as perfumes and jewellery and DVD players etc. Sometimes at the start of a recession things go on sale prices, this is so that more items get sold, it is a way of slowing down the recession.

Today British GAS has anounced BIG price rises again. So people will be saving money for their winter gas bill already, and no buting flowers, and luxury items.

As every £1.00 of gas will now cost £1.35 instead, people start to protect themselves from running out of money.

Hope this helps.