What is a recession and is the UK headed for one?

Question

I'm a young guy starting to become very interested in my countries welfare etc. Recession, i dont know exactly what it is but i have noticed some things which make me alarmed about the state of the UK. The hospitals seem to be very underfunded, almost brinking on dangerously underfunded. The benefit side of things are getting a radical overhaul which in the long run appear to limit the money being paid out to benefit seekers. The army again seems to be underfunded as reported on the news many times. The cost of living is going up but the amount of jobs are going down. What exactly is happening?. Something i have no idea about is the whole bank fiasco (Northern Rock), what happened with that? Its almost as if the UK is running out of money, if this is the case, why?

Answer 1

the UK definition of a recession is "2 consecutive quarters of negative growth". IE, 6 months of continual decline. So we aren't there yet but many predict it by 2009 / 2010.

Answer 2

A recession is a period of negative economic growth; to be qualified as a recession this has to occur over two financial quarters.

Hence why at the moment they cannot say it is a recession, they can only give it names such as a 'credit crunch' until two financial quarters have passed with negative economic growth-so you don't know if it is a recession until it has already happened.

Answer 3

It's already here, but the Government wont tell you that.

Answer 4

Two successive quarters of negative growth in the economy. No, I don't believe we are. There should be a rebound in the US economy following the interminable Presidential Election, as there usually is. This will help British exports.

All Government Departments, like Health and Social Security, will always tell you that they are short of money. The Army on the other hand is underfunded and overstretched. The cost of living is rising, but pay rises should compensate for that. Some jobs are going, but there are still plenty of unfilled vacancies in other Sectors.

Northern Rock relied on the Money Markets for its funding and Banks are cautious about lending each other money.

Labour Governments always run out of money. Phew!

Answer 5

A recession is many many things put together and a lot of them you touched on.  It basically means that the economy (in general, the total of it all) is slowing down from the pace at what it was at.  For instance, inflation could increase but wages and jobs could decrease or most likely stay the same.  A lot of the problems going on in the entire world right now, and epically in your country could be linked to the recession the United States is in.  Because our world is in an age where information is traveled within nanoseconds, we are all connected (at least our economies are) and when the largest economy in the world slows down everyone is going to feel the aftershock.

Answer 6

RECESSION!!?? Oh Baby - you aint seen NOTHING yet - there is a NIGHTMARE a`COMIN. Recession is ABSOLUTE and cannot be avoided - IT WILL LAST FOR 5 TO 6 YEARS. The Politicians know it but dare NOT say. Watch this space !!!!!!!!!!!!!!!!! -Be prepared - Stock Markets will HIT ROCK BOTTOM by Nov/Dec 2008 - Footsie will be 2000 ish.- Head for the shelters mate!!

Answer 7

Heres a good one:

We (uk) have never had such

a large international DEBT since 1946 !.

I was never a great fan of 'maggi'

but that lady CLEARED our debt !!

WE OWED NOTHING !.

'new' labour have effectively fucked us !.

God help us please !!!!!

Answer 8

You're not the only one that's worried!

The answer above gives a proper explanation, if you need some more explanation I'd suggest going on the BBC website, it's very infomative.

The bank thing is something different I believe (Though someone please correct me if I'm wrong) it is more to do with bad investing?

Answer 9

It is heading that way - a recession is, as already explained, a period of negative economic growth. The last one is within the living memory of many: News at Ten on ITV used to have Trevor McDonald & Co announcing the latest major job losses around the country. The signs of a recession are there - companies hanging on as long as possible before settling bills, lots of houses up for sale, increased interest rates, etc. I just hope it doesn't last as long.