British Double Dip Recession

It was announced last week that Britain has entered into recession due to the economy shirking for the second consecutive quarter it is also the first ‘double-dip’ recession since the economic turmoil of 1975. ‘Double dip’ is where the economy goes back into a recession before it has had a chance to recover its previous high of economic output. Britain’s ‘Great Recession’ started in the spring of 2008 and ended in the summer of 2009. This is based on the technical measure of ‘recession’. The economy then raced out of recession faster than expected but faltered again late in 2010, with the heavy snow of December blamed for much of it, and slowed to a snail’s pace in the first half of 2011. With consumers, companies and government all trying to fix their finical situations economic growth is almost impossible as everyone try’s to save money and cut spending. Unemployment is a major issue in the UK economy especially youth unemployment.  The number of young people looking for work hit a new record of 1.043m, taking the rate for 16-24 year-olds to 22.3%. 2011 seen England face a number of student protests and riots relating to benefit cuts and rising tuition fees. Since the coalition came to power, the country has seen multiple student protests, occupations of dozens of universities, several strikes, a half-a-million-strong trade union march and now unrest on the streets of the capital (preceded by clashes with Bristol police in Stokes Croft earlier in the year). All these events are directly related to the economic crisis as the British government struggles to control their deficit by making harsh cuts towards public sector workers, education and benefits. Without sutatble funding in education we will have unskilled and unmotivated workforce which will do nothing for the economic situation. However figures show a large rise in the number of self-employed people. A rise of 101,000 took the total to a new record of 4.2m. This is a positive seen that although the British economy is currently in recession and facing an ongoing finical crisis people seen to be dealing with the issue in innovative ways. 

Sources:

http://www.thisismoney.co.uk/money/news/article-1616085/Economy-watch-How-long-Britains-recession-last.html#ixzz1te6YxlWe 

http://www.bbc.co.uk/news/business-16608394

http://www.guardian.co.uk/commentisfree/2011/aug/08/context-london-riots

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