Why is only Britain facing recession? Does it just prove the ineptitude of new labour?

Question

Lavish government spending has helped, is it time for new labour to take responsibility for their miss management of the UK?

http://www.guardian.co.uk/business/2008/sep/04/economicgrowth.economics

Answer 1

It's a sort of reverse multiplier effect because of our overdependance on service industries.  Labour has been in power long enough to share some of the blame for this but the problem is very deep rooted

Answer 2

Left-wing government that's why.

Answer 3

It's not only Britain - though, because we are tied to the US economy and have a disproportionately greater service economy than other countries, we are being hit harder. The blame here lies with Thatcher for decimating our manufacturing industry.

Unfortunately, our economy was built on debt (a castle of sand, if you like) and with the credit crunch, the gap between wages and prices is leading to recession, as people simply can't afford the goods which keep the economy going. (see source 2)

For those who equate Blair and Obama with socialism, nothing could be farther from the truth. Both would carry on with the same free market policies as the Tories or Republicans. It is the market itself which is failing and government intervention is necessary to shore things up (i.e. Northern Rock).

All this was very predictable (see source 1) written in December 2006.

I think people will begin to see that the whole system of capitalism is the cause of the problems and that we need to organise a society so that wealth is equally shared by everyone, where people take control over their jobs themselves and decisions can be planned centrally but democratically, not left to the chaos of the free market. This would meet the needs of people and the environment - as long term decisions cannot be made by capitalism, which is only interested in a quick buck.

Answer 4

what can you expect  from the new labour communist party,  

that's what they are just look how they operate, most of all look at the tsar in charge Gordonski Brownakov. now he says he is optimistic for the economy while everyone else says , dear god its bad.

yes the would in in trouble thanks to the USA destabilizing it with the illegal war.  but Brown destabilised us long before

Answer 5

Gordon did say we were very well placed to ride any recession,now we're going to be the worst hit.He usually goes into hiding and keeps quiet when things get bad.

Answer 6

It is very sad ( and convenient) that you forget how this country was under the Tories.

we have never had it so good over the last ten years. Then due to the global economy things become difficult, it is outside forces not internal that have caused the down turn.

So what of the Tories? Not a peep. Nothing constructive , no alternatives. They are so above the rest of us, wealthy, protected from down turns they do not give a toss now and they certainly will not give a toss if they get in to power. Sadly the working class will not see that and the tories will let us all suffer (like in the 80's) and the upperclass  andrich will make sure thay are all ok.  

Answer 7

Get your facts right. The whole of the western world faces a very sticky economic period.  

Answer 8

It can only be put down to one thing!Inept political financial policies of an incompetent Labour Government led by an equally inept leader Gordon 'prudence' Brown!Come on!There is a joke if there ever was one!Fancy being called 'Prudence' Brown!

Answer 9

Joining the Zionist/American attack on Iraq which cost the UK many billions was enough to bring down the finances of the UK and thereafter the Labour Party.

I fail to see why we in the UK should spend so much to defend Israel, whatever the justification for Israel is it really our problem?

Answer 10

its the rest of the world ,even  David Cameron cant do anything about it , have you noticed how hes kept quiet on the issue ?

Answer 11

Yes not just us croxx America as well last month they lost 75,000 jobs when they need at least a 100,000 new jobs a month to stave off recession.But that does not deflect from the fact that yes New Labour were telling us all a year ago we would avoid recession although i did tell everybody that was total rubbish.

Should they admit it yes will they no

One thing i will say what a lot of people do not realise we have given America huge loans when times have been good so with America facing problems it inevitable we will.

http://en.wikipedia.org/wiki/U.S._public...

you may find this interesting we own Americas third largest debt.

Answer 12

I actually don't know the answer to this question. Maybe later...

Answer 13

Most of these countries, barring America have already been through recessions recently and have implemented reforms that are allowing their economies to avoid a recession. Also their are mixed messages worldwide about a recession and many economist feel it is probable that america will suffer a severe recession.

Answer 14

The Organisation for Economic Co-operation and Development (OECD) said on Tuesday that Britain will be the only one of the world's seven leading economies to fall into a recession this year.

Funny that - it is almost as if strangling the economy with stealth taxation isn't a good idea after all.  

Answer 15

What we are facing now is a global problem caused by banks over lending to make vast profits and people over borrowing when they can,t afford to pay back.

A well known bank director was quoted as saying[we are now only going to lend to people who can afford to repay]

The reason it has hit this country so bad is because of the massive gap between rich and poor.So many people have been kept just hovering above the poverty line to help the rich get richer.

When people get hungry and cold enough they will force the government to rectify this imbalance.

This won,t happen without some force because the conservatives are even worse than labour.

Answer 16

Of course it does, thats why in the New Year, against the people's wishes, we are gonna join EuroLand.

This whole recession has been an elaborate ploy to "force" us gently into the Euro. It's no secret that the Govt and the Banks have deliberatly set this chain of events off to swing public opinion in favour of the Euro.

Expect over the coming months, tonnes of Pro EU propaganda and how joining the EU will "save us". Or better still maybe we'll hear nothing until the New Year then wake up with the Eurozone flag flying over our head.

We should however stay out of the EU and reject the Euro, but we all know its a done deal. And this "recession" is just part of the plan.

d**n I sound like one of those crazy CT'ers! lol

Answer 17

So government spending drives down production in the private sector.  Increased taxes to fuel reckless government spending makes less economic growth.  Someone needs to forward this article to Obama.  The only question is how did people get so brainwashed into thinking socialism will solve everyones problems.  This is America in 20 years unless some people wake up.

Answer 18

This is a misrepresentation. Other economies are just on the edge of recession, if not already entering it.

Why can't anti-Labour people understand that the WHOLE WORLD is suffering from a slow down. The WHOLE WORLD has rising food and fuel prices.

You've obviously totally forgotten (or weren't born at the time) the inflation and very high interest rates during the last Tory regime.

Answer 19

It's the world kids...get comfortable for a while.

Answer 20

Sure is the fault of New Labour found out to be no better than old Labour.

Answer 21

Ireland is too.

Answer 22

The US is on the verge itself.  And the EUROzone may still fall into recession due to the high value of the EURO.

Answer 23

Everyone is correct in saying that western economies are going through a difficult period because of rising oil prices, credit crunch etc., but I do think New Labour has made matters worse. Under Gordon Brown as Chancellor they borrowed sh*tloads of money without ever thinking about how to pay it back. Now that's an issue and with the current economic climate it means high taxes to try and pay for it, remember the UK's economic growth is stagnant at 0% that's worse than the US dramatically, I fear the worst is yet to come.

Answer 24

It isn't only Britain.  The US is also.

Answer 25

OECD have said Britain will be the *first* to enter recession, not the only one.  In this day and age, no advanced economy can really go into recession/growth without influence from and impact on other countries.  So our current problems are influenced by events and forces outside our control, just as our problems will equally influence the fortunes of other countries.

And likewise when the economy eventually bounces back again, it'll be partly due to our own successes, but also thanks to a generally reinvigorated world economy.

Answer 26

All of the Western World is facing a slow-down but the two countries that will probably fear worse are the UK and the USA.

The reason for this is because these two countries especially the UK have shed far to many industrial manufacturing jobs to the Far East, in the vain hope that the service industry along with the banking and financial sector and house sales at home would somehow pay our way in the world.

Well, I have a sneaking feeling that the rest of the Western World don't

see it like that, they like the idea of actually producing some of the goods that are bough and sold in their shops, strange notion this but it seems that it may even be working.

Well well well well well, who'd have though that,,, not our government it seems.

Answer 27

Just because there is negative or no economic growth doesn't mean we're facing total economic breakdown! Credit was too easily available up until now anyway, is it the government's fault too many people are spending beyond their means?

Read the article you've quoted, "US house prices were never as overinflated as ours and so are not falling nearly as fast." House prices were ridiculous before they started coming down.

I do think that the government should intervene with regards to oil prices. They are absolutely ridiculous and the companies seem to be able to get away with charging whatever they like!

In any case I don't think the credit crunch is anything to get hysterical about. Be sensible - turn off heating and electricity when it's not needed, be thrifty and shop at places like Lidl's. It'll all even out eventually!

Answer 28

The most damning aspect of our current economy is the speed with which it's gone as you say from hero to zero.On top of that The Government must now explain what all their guff about "no more boom or bust" was all about.My point being not that I expected Labour to defeat the laws of economic gravity but that they had the nerve to say in public that they could.The US appears to be heading for GDP growth of perhaps even though the credit  runch orginated there so how are we headed for 0%.