Once more for the back - the global recession was caused by the global financial crisis; not the Labour party. Gordon Brown pretty much singlehandedly saved the global financial system from collapse.
OP- I was 16 in 1997 and I'll never forget the feeling the morning after the election. I'm from a working class ex mining area that was totally decimated- I wasn't taught in a classroom that didn't leak, 8 hour waits in A&E etc etc.
A lot has already been mentioned but there was a feeling of optimism- Britain meant something in the world, we were an exciting, forward looking country, European, with a young prime minister. I do remember having loads of passionate discussions on PFI, creeping privatization of public services etc- we recognised that would be a problem then. But at the same time the hospitals were falling down, the schools were derelict. Things can only get better. As they said.
Street homelessness almost disappeared, schools in London became brilliant, you could get medical attention! Stuff was still affordable. It felt like serious people, who cared, were in charge even if they didn't get it right.
Foreign policy was a binfire post 2001 it is true. The repercussions have been severe. But governments rarely move solo on foreign policy issues and I suspect we would have done similar if someone else was in charge.
I think it's important to remember a lot of this was pre mobile phone and social media, though, which means a better controlled narrative and less constant exposure to failings.