| red_rebel2 Posted on 15/11 12:04 | |
| Looming unemployment and economic crisis? | |
Unemployment is at its highest rate for seven years. Because New Labour has reduced access to benefits, the number of people claiming is still below 1 million, but the number of people actually out of work and seeking employment is over 1.7 million. The US economy is still in trouble and a deep recession remains a distinct possibility. It is worth noting that the recent woes of the American working class pushed aspiring Democratic candidates, even 'social conservatives', to adopt economic 'populism', pledging to oppose further 'free trade' deals and increase the minimum wage. nd if the US economy slides, the British economy will go with it, since so many of our big institutions are owned by US corporations and becasue exports to the US will suffer and the Eurozone isn't going to pick up the slack. The housing market, which everyone knows is ludicrously overvalued, could collapse as well. So, how will our political class manage this? By stimulating demand through supplemented incomes (ie higher benefits, more tax credits etc)? By borrowing to invest? By relaxing interest rates? Perhaps a little bit of the last two, but most likely is that New Labour and the Tories will: a) talk up the need to curb migration, while carefully managing a sufficient flow of low-cost labour to boost growth, (which both diverts the discussion from an emphasis on class, and benefits the Nazis, whose recent victory in court owed a lot to New Labour's rhetoric about Islam) b) talk up the need to 'reform' the public sector, by cutting pensions bills and other forms of benefits, c) boost the case for a Keynesian military state, with the argument being that to scrap the ludicrous Trident replacement would cost jobs d) suppress minimum wage increases and implement an unofficial incomes policy across the public sector (thus suppressing wages across the economy as a whole). In short, the political establishment will ensure that we pay the costs of their crisis. They will, as far as they can manage, take the opportunity to further restructure the economy with fewer protections for workers and more 'flexibility' so that capital can hire us on more advantageous terms to itself. | |
| The_DiasBoro Posted on 15/11 12:08 | |
| re: Looming unemployment and economic crisis? | |
Agree with much of it, but "The housing market, which everyone knows is ludicrously overvalued, could collapse as well." It's not "could", it will. Just a question of when. | |
| captain5 Posted on 15/11 12:10 | |
| re: Looming unemployment and economic crisis? | |
From a selfish point of view, I'm hoping the housing market does collapse, so I can actually afford to buy somewhere. There was a report out yesterday commenting that the proportion of people who actually own their own homes will fall as the population gets older as there will be more and more people whose only assets will be their house. | |
| ccole Posted on 15/11 12:20 | |
| re: Looming unemployment and economic crisis? | |
If house prices fall, fewer people can afford to sell, so not many more become avvailable. A big drop in price may happen down south, but Tesside's prices will never drop by more than 10% | |
| red_rebel2 Posted on 15/11 12:36 | |
| re: Looming unemployment and economic crisis? | |
I though I might get a few Keynesians or neo-libs. Its political correctnes gone mad I'm not very good at this fishing am I? | |
| The_Commisar Posted on 15/11 12:41 | |
| re: Looming unemployment and economic crisis? | |
nope Red, you want to change your approach. Try abusing a minority, that always does the trick. Well it keeps the papers going anyway.......... | |
| grantus Posted on 15/11 12:43 | |
| re: Looming unemployment and economic crisis? | |
Well, it's coming quickly for me. Unemployed from the end of this week. | |
| rararasputin3 Posted on 15/11 12:43 | |
| re: Looming unemployment and economic crisis? | |
You should be happy Red Rebel, looming unemployment means more cool Strikes! | |
| TheMallardQuacked Posted on 15/11 12:44 | |
| re: Looming unemployment and economic crisis? | |
Saw that report Cap. Also said that there are likely to be wage rises of at least 4% in the new year too causing inflation. I too cling to the hope that house prices come down to a reasonable level. Until then its carrying on paying rent for a one bedroom shoebox in Sheeps arse. | |
| sunset_over_ici Posted on 15/11 12:55 | |
| re: Looming unemployment and economic crisis? | |
The housing market will crash only if I every get enough money scraped together to buy one. I agree about the public service cuts: I'm choosing a bad time to go into a profession. | |
| Ch4rlieB Posted on 15/11 13:04 | |
| re: Looming unemployment and economic crisis? | |
Already know my salary increase 6.4% Though if you do it on last Jan's salary its 22.2% Lovely. And how will a house fall actually help you. It wont cause it affects everything. Mortages offers, inflation, price of food. If your honest its the worst thing that could happen. What you want is it to stall, (Stop rising at the rate it is doing) | |
| BobUpndown Posted on 15/11 13:05 | |
| re: Looming unemployment and economic crisis? | |
ahh but you miss the fact that there are more people in work too!! Pensions are to be linked, again, with wage rises.. but not been told when.. House prices won't crash.. the banks wouldn't let them, they have too much to lose.. expect longer terms for smaller dwellings.. Trident.. seems a waste of money.. tho would want some independent deterent.. Manufacturing staff levels now at it's lowest since 1850ish.. tho you have to remember automation.. tho think a country that produces little is poorer for it.. Minimum wage has risen.. agree imigration should be limited not just for our benefit.. but how can a developing county develop it if can't teach it's kids to read cos we nicked their teachers.. heal their sick when we take their nurses and doctors.. fix their bogs when we nick their plumbers ;-) | |
| CeithKool Posted on 15/11 15:23 | |
| re: Looming unemployment and economic crisis? | |
A good worldwide recession is what the world needs in my eyes. Once the US economy goes into recession it will effect the whole world not just the UK, and every country will go into recession. There will be a lack of demand for all goods and what goods are sold will be wanted at a decent quality rather than poor quality goods. And this will cause many foreign firms in developing countries such as Eastern Europe and the far east which rely on near continous production and FDA to stay afloat will be left in the mire. And established UK firms can begin to pick up the slack and redevelop as Market Leaders | |
| red_rebel2 Posted on 15/11 15:25 | |
| re: Looming unemployment and economic crisis? | |
But there are very few UK firms that could react like that. Manufacturing and engineering jobs have all been exported to cheap labour economies. | |
| The_DiasBoro Posted on 15/11 15:49 | |
| re: Looming unemployment and economic crisis? | |
"ahh but you miss the fact that there are more people in work too!! " There are more migrants than there are new jobs. "Pensions are to be linked, again, with wage rises.. but not been told when.." Whoopy-do. MPs pensions you mean. "House prices won't crash.. the banks wouldn't let them, they have too much to lose.. expect longer terms for smaller dwellings.." Unbelievable naivety. Wasn't that how they avoided the last crash? | |
