Recession or Stagflation

[Abblebee]

https://www.theguardian.com/business/2022/may/05/recession-the-price-bank-prepared-to-pay-to-bring-uk-inflation-to-heel?CMP=ShareiOSAppp_Other

This is not looking good for any of us.

"the Bank said consumers tightening their belts to deal with the cost of living crisis was likely to push the economy into a sharp contraction in the fourth quarter."

"Predicting a grim economic backdrop before the next general election, the Bank said the hit to living standards and weaker growth would cause a sharp rise in unemployment to 5.5%, surpassing the jobless rate during the early stage of the Covid pandemic."

The 1970s are not back. They had a welfare safety net system then, and public services like reasonable transport.

But yes, it’s been obvious for a while that the economy was going to crash. It’s what you get when you’ve impoverished people to the extent that the majority can’t afford to live while a few live in unbelievable luxury.

The 1970s are not back. They had a welfare safety net system then, and public services like reasonable transport.

This is a good point.

And curiously enough, all “the previous economy” has done ever since is lurch from one catastrophe to another and make the rich richer. You can’t simply rip out the backbone of a system and expect it not to collapse.