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To think the UK is sleep walking into an economic disaster

(182 Posts)
HerstoryInTheMaking Fri 10-Jul-20 16:31:11

Covid is obviously doing significant economic damage and harm. The UK public seem to have not embraced mask wearing as a prevention to spread meaning further outbreaks are likely as the virus lingers in the air according to scientists.

On top of this Govt stimulus seems to be too small for the crisis that we face despite promises of a new deal. The stamp duty cut appears to be a blatant attempt at keeping house prices artificially high when a correction is needed especially in the South East.

A transition agreement extension is now impossible and little progress has been made on trade talks with the European Union. Regardless of your stance on Brexit it appears that a No deal scenario would create economic harm to some degree in the short term.

So you have a severe recession that could get worse with a no deal cherry on top, whilst being led by a govt that hasn't exactly proved its competence in recent months.

Aibu to think we should run for the hills?

OP’s posts: |
heartsonacake Fri 10-Jul-20 16:33:40

Of course YABU and overdramatic.

HoneysuckIejasmine Fri 10-Jul-20 16:33:51

Yep. The EU have issued documents to businesses outlining all the things that will change. It's comprehensive and terrifying. If your business uses the EU for any reason including freight, raw materials or indeed as a consumer... You are fucked in no deal.

bashcrashfall Fri 10-Jul-20 16:35:54

My local council just released a financial report saying if they don't receive an additional £100million from the government they are not financially viable. And while a large council they are generally considered cautious financially, have significant reserves etc. Multiply that by every county.... A LOT more money is needed just to ensure schools, social care and child services keep going. Lets forget nice things like libraries as there is no hope of saving them now.

HoneysuckIejasmine Fri 10-Jul-20 16:36:12

Link to precis article which includes link to original EU document.

yorkshirebylines.co.uk/eu-launches-its-own-shock-and-awe-campaign-early/

TornadoOfSouls Fri 10-Jul-20 16:39:50

Essentially I agree with you, although I am in favour of the stamp duty cut because it will keep the market moving. I appreciate it doesn’t help the less well off but it’s not intended to.

I think Rishi Sunak & the Treasury are trying to come up with innovative, practical measures to help the economy, things that can be implemented relatively fast, eg the furlough scheme. I know it didn’t work perfectly but IMO it was a good, quick, effective measure. So far I am quite impressed.

No deal will be a disaster, yes, and the government has destroyed a lot of trust throughout the pandemic.

I am interested to see what others say. I think we are in for a very tough time. However I do think that some welcome innovation will come out of it as well.

BoxAndKnife Fri 10-Jul-20 16:44:56

Either Covid or a no-deal Brexit alone would have made things very difficult. Both together...it's going to be extremely tough, to put it mildly.

I would be interested to know how the posters who say YABU think things are going to pan out, given the facts staring us in the face already.

roses2 Fri 10-Jul-20 16:46:18

The whole world is going to enter into a recession - it's not just the UK.

If a hard Brexit occurs then we will default to WTO deals. This is a scaremongering one sided article written by a guy who is clearly anti UK government.

Mistlewoeandwhine Fri 10-Jul-20 16:48:44

WTO deals are the lowest of the low.

BentBastard Fri 10-Jul-20 16:49:23

Yes to economic disaster, no to sleepwalking into it. Many people have their eyes wide open about it and are shouting from the rooftops but they have no power while Johnson and his no dealers have an 80 seat majority 🤷‍♀️

shinyredbus Fri 10-Jul-20 16:49:38

Have you got a remedy to it? Everyone is going to to a recession - not just us.

BoxAndKnife Fri 10-Jul-20 16:50:38

The whole world is going to enter into a recession - it's not just the UK

Oh well that's ok then, worry over, nothing to see here.

If a hard Brexit occurs then we will default to WTO deals

See previous comment hmm

Basically '^it's all fiiiiiine^, right?

'WTO deals' are categorically not a solution.

MarshaBradyo Fri 10-Jul-20 16:53:58

I agree with Tornado on measures implemented now.

I’m not sure about Brexit anymore, not sure which way it will go so will wait and see.

I think a working vaccine is a big deal for a quicker rebound.

Tolleshunt Fri 10-Jul-20 16:56:46

I don’t agree that the housing market needs a correction, but broadly agree with the rest of it.

Some of it is largely outside of our control (Covid). We could control the Brexit clusterfuck fallout, but we have a government hellbent on pursuing ideology over pragmatism (ironically, something the right always used to accuse the left of. Oh, how time’s change!).

As a nation we could limit the damage much more than we will. As an individual I don’t know what else I can do. I didn’t vote for Bodge or Brexit. My votes counted for nothing 🤷‍♀️

ThroughThickAndThin01 Fri 10-Jul-20 16:56:49

Don’t think it’s exactly sleepwalking. Everyone is aware of what’s happening and why.

Stupid comment Box of course it’s relevant it’s a worldwide recession.

HoneysuckIejasmine Fri 10-Jul-20 16:58:49

The UK has opted out of the EU vaccine program. So I hope us plucky Brits can do it all alone, us against the world, bulldog spirit etc etc hmm

Yes, every major economy will be hit by COVID linked recession.

Lucky us will also be hit by Brexit recession straight afterwards. If we're lucky, we might even get a depression. Woo.

Roses the article is a precis of the EU document, and directly quotes it. You can read the original too should you want to. Remember, the EU will set the rules of what we must do if we want to trade with them, and no amount of foot stamping and calling them meanies will change their mind. We've left, we're not in the club anymore. So if we want to make use of the facilities, we'll have to pay for it. As usual, pay as you go is more expensive than a subscription. wink

BoxAndKnife Fri 10-Jul-20 17:04:32

Stupid comment Box of course it’s relevant it’s a worldwide recession

Charming.

I didn't say it was irrelevant. I know it's worldwide. But the fact that it's a worldwide recession doesn't change the fact that we are going to be extra-specially fucked due to the combination of Brexit, Covid and our lovely, competent, caring, entirely non-ideological govt. It certainly hardly makes it better.

'It's a worldwide recession' is used to shut down debate. The OP is taking about the UK.

canigooutyet Fri 10-Jul-20 17:07:03

Many aren't sleep walking. Many were talking about the economical impact of lock down before it happened. Have been doing throughout all of this.
Many will continue to bury their heads in the sand.

Who can we fix the economy? Haven't got a clue.

All we can really do it carry on talking about it to help wake more people up so they can start making their own plans.

The global economic people (forgotten what they are all called) have been talking and trying to plan for this recession since earlier in the year because of what they are seeing.

BoxAndKnife Fri 10-Jul-20 17:07:49

I bet the people who are jumping in with 'stop fussing, it's a WORLDWIDE recession' are the same ones who tried to pin the blame on Gordon Brown for the fallout of the WORLDWIDE financial crash in 2008 hmm

ListeningQuietly Fri 10-Jul-20 17:08:42

Covid Vaccine - not going to give lifelong protection so largely irrelevant

WTO Brexit - anybody who thinks this a good idea does not understand it.

ThroughThickAndThin01 Fri 10-Jul-20 17:09:41

Nope I didn’t blame Gordon brown, stop generalising. Alistair darling did a good job in my opinion.

MarshaBradyo Fri 10-Jul-20 17:12:41

Covid Vaccine - not going to give lifelong protection so largely irrelevant

I couldn’t disagree more. Even if it’s a yearly vaccine like the flu vaccine it will allow us to get back to pre Covid. Do you think we would continue to carry on as we are now?

Jaxhog Fri 10-Jul-20 17:19:06

Brexit was predictable, COVID was completely unexpected. Both will have a major impact on our economy.

Brexit - those that voted for it, deserve what they get from the economic impact. Sadly, many people didn't vote for it, and will also feel the impact.

COVID - anyone who doesn't follow the guidelines deserves the inevitable medical and economic impact. Sadly, here too, others will feel the brunt, and many have died and will die as a result.

What this has brought home to me, is that too many people go about their lives with little or no thought beyond themselves, until THEY need help e.g. blood transfusions or a government handout. What a truly sad indictment of human beings in this country.

KettlesReady Fri 10-Jul-20 17:20:57

What I fear is hyperinflation. We are fucked if that happens.

Jaxhog Fri 10-Jul-20 17:22:08

And we need to stop blaming the government for all our woes. We voted for them, we voted for Brexit and we're the ones not following the guidelines. We need to take some responsibility, quite frankly.

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