Hi. Im only 15 so bear in mind my naivity (!) but what do you think about the UK economy. Inflation hit the 3% mark a few months ago, and is now going to a low of 1.8-9%. House prices are finally going down, and interest rates are on a high of 5.75%. Perhaps most importantly, economic growth is slowing down - still growing, but growing less - from 2.5-3.0% to 2.0-2.5% (and Government figures are usually on the high end). A few weeks ago when the inhertance -or should I call it a death tax- 'cut' was anounced, I heard that Government spending isn't going to be all as much as in the Blair years.
Do you think we're heading into bad economic times - personally I think it is stepping one notch down, but I don't quite think we're going to be right down there yet.
2007-10-27 17:57:29 · 7 answers · asked by ღ♥ღ latoya 4 in Politics & Government ➔ Other - Politics & Government
hm.. i think the people to blame for almost everything regarding this are not the Government, but the annoying oil cartel called OPEC... rising oil prices will increase inflation anyway (as its calculated using family petrol expenditure as well), but higher oil prices = higher transportation costs = expensive products = higher inflation = higher interest rates = less spending & mortgage families suffer = DISASTER!!!
at the same time, can you really blame them? Oil is a resource we choose to use, and its not moral using it at such a high quantity. The oil does belong to those countries - and I suppose its fair that they should be able to sell it at their price - even it means exploiting us
2007-10-27 18:39:31 · update #1
Yes both the USA and the UK are headed for major recessions. Both are having similar issues/problems with immigration and poorly handling globalization/trade. Also both have spent too much on the Iraqi conflict.
2007-10-31 16:46:48 · answer #1 · answered by BeachBum 7 · 0⤊ 0⤋
well take a look at the house prices are they slowing down or still rising it has been on the cards for some time the cost of living has doubled in real terms in the last 10 years people are having to borrow 10 times salary for houses 10 years ago it was only 4 times but there is still a lot of investment
when the slump comes as it inevitable will is any-ones guess but i would say if i was a gambler 18 months it really should start to bite with home owners facing negative equity
2007-10-28 01:07:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Not only the UK i reckon we have a gobal resession on the way.. I can tell you Right now joining the Euro currency will be good for uk at first but within a few years it will be in the same boat as Ireland we cant control our own econmey any more it sucks big time.
2007-10-28 04:04:28 · answer #3 · answered by Irish816 3 · 0⤊ 0⤋
No, there ia still a shortage of labour and the construction industry is booming despite high house prices.
Interest rates and inflation are still historically low.
I can remember 15% and 10% under Thatcher.
2007-10-28 01:38:01 · answer #4 · answered by brainstorm 7 · 0⤊ 0⤋
With economic growth in the range of 2-2.5%, rising oil prices(no reduction in the gorwth of oil consumption), no major resorces to be tapped, it is only to tightening of belt and extra generation of growth. Otherwise,it is there that country will have to face recession.
2007-10-28 02:35:05 · answer #5 · answered by kailash bohra-kailee 3 · 0⤊ 0⤋
yes it is and its going to be a lot worse than the last one and this goverment ha dont give a monkeys
1 in 3 familys are behind on there payments and 1 in 3 owe over £25000 a lot of people are going to lose there houses,jobs etc
2007-10-28 01:01:10 · answer #6 · answered by eddie j 4 · 0⤊ 0⤋
wow i didnt know that. i have been watching the usa dollar compared to the pound and the euro, and i can see it falling. but i didnt know that their currency was falling as well. maybe inflation and bad economy is turning into a problem for all of the countries.
2007-10-28 01:18:42 · answer #7 · answered by curvy_chick000 4 · 0⤊ 0⤋