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Living Standards To Suffer As Effects Of Recession Bites

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http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/8756479/Living-standards-to-suffer-as-effects-of-recession-bites.html

The Institute for Fiscal Studies says the impact of the crisis on living standards has "only just begun to be felt".

It warns that the combination of public spending cuts and tax rises will undermine the financial prospects of families for much of the next decade.

The IFS warning follows news that ministers are working on a further package of measures to kick-start the economy, which they are calling "plan A-plus". However, George Osborne, the Chancellor, has refused to water down spending cuts and tax rises, which have included an increase in VAT and National Insurance for better-paid workers.

It also comes as the Vickers Report into the banking system today risks causing another political row by recommending that banks are forced to separate their high street operations from their investment banking arms.

The IFS research says the Government was initially able to mitigate the impact of the recession on households with "unusually generous" financial support, but Gordon Brown had to borrow vast amounts which must now be repaid.

Er Gordon borrowed loads of money but he gave it to the bankers, now the people have to pay it back.

Debt servitude for all.

The bubble has burst we can't avoid the contraction. Living standards to return to normal?

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Under my definition, I suppose it is. I think under that you can have a depression without the technical requirements for a recession.

The US in 1934 had 4 positive quarters of GDP.

So not only was there no Great Depression in 1934, there was no recession.

Technically.

great_depression%2525202.jpg

Our new happy life

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The US in 1934 had 4 positive quarters of GDP.

So not only was there no Great Depression in 1934, there was no recession.

Technically.

Although at that point no one had cleverly defined what a recession/depression was. Wasn't it under Lydon Johnson where some clever economist decided to define what a recession was so the President could go on TV and say it wasn't a recession?

In the 30's it was more of a feeling and probably looking at the number of unemployed and saying that looks depressing?

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http://en.wikipedia.org/wiki/Depression_%28economics%29

In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle.

Considered, by some economists, a rare and extreme form of recession, a depression is characterized by its length, by abnormally large increases in unemployment, falls in the availability of credit— often due to some kind of banking or financial crisis, shrinking output—as buyers dry up and suppliers cut back on production, and investment, large number of bankruptcies—including sovereign debt defaults, significantly reduced amounts of trade and commerce—especially international, as well as highly volatile relative currency value fluctuations—most often due to devaluations. Price deflation, financial crises and bank failures are also common elements of a depression that are not normally a part of a recession.

The wikipedia take..

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Although at that point no one had cleverly defined what a recession/depression was. Wasn't it under Lydon Johnson where some clever economist decided to define what a recession was so the President could go on TV and say it wasn't a recession?

In the 30's it was more of a feeling and probably looking at the number of unemployed and saying that looks depressing?

In 1978 Alfred Kahn, one of Jimmy Carter’s economic advisers, was chided by the president for scaring people by warning of a looming depression. Mr Kahn, in his next speech, simply replaced the offending word, saying “We’re in danger of having the worst banana in 45 years.”

http://www.economist.com/node/12852043

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I don't think this is recession or depression - those are transitory.

I think this is the new norm.

It's just that we've been living in a dreamworld of usurious lending, and a fake boom enabled by unlimited credit for all with a pulse (and before that an equally speculative tech bubble).

This now is the true state of our globalised economy.

Time will tell where the next temporary bubble's going to come from to lift us out of it.

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In 1978 Alfred Kahn, one of Jimmy Carter’s economic advisers, was chided by the president for scaring people by warning of a looming depression. Mr Kahn, in his next speech, simply replaced the offending word, saying “We’re in danger of having the worst banana in 45 years.”

http://www.economist.com/node/12852043

Perhaps we should just replace the word with banker?

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In 1978 Alfred Kahn, one of Jimmy Carter’s economic advisers, was chided by the president for scaring people by warning of a looming depression. Mr Kahn, in his next speech, simply replaced the offending word, saying “We’re in danger of having the worst banana in 45 years.”

http://www.economist.com/node/12852043

bananas are a bit depressing

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In 1978 Alfred Kahn, one of Jimmy Carter's economic advisers, was chided by the president for scaring people by warning of a looming depression. Mr Kahn, in his next speech, simply replaced the offending word, saying "We're in danger of having the worst banana in 45 years."

http://www.economist.com/node/12852043

Didn't the EU regulate the length of bananas so hopefully things will be picking up soon?

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Under my definition, I suppose it is. I think under that you can have a depression without the technical requirements for a recession.

It's a recession when you lose your job; it's a depression when a banker goes without his bonus :D

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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