As far as i’m concerned, our recession started when our government announced 3% cutbacks across all government departments. That decision was made before the country was officially in recession and it only helped to speed up the snowball’s roll downhill.
Whilst many will say it was a sensible and responsible move, i say it’s poor leadership and a really defensive attitude. Today the british announced a REDUCATION of 2.5% VAT, a sharp contrast to our .5% RISE in VAT.
Both very different approaches in tough times. The British are much more attack minded though and are actually trying to do something about the state of their economy – trying to kick start it or at least stop it from rolling back further – that’s admirable.
Our government have a damage limitation approach and by making drastic cutbacks themselves, they are in fact leading by poor example – everyone else has also made cut backs.
A recession is simply less cash changing hands and people wanting peace of mind. It’s all mental… all mind games and the only way you’re gonna get out of it is by stepping up to the plate and making bold decisions when others won’t. Attack is always the best form of defence.
I reckon the biggest problem is lack of cash.
The banks are our main problem …. no cash … no trade.
Prices of houses may be falling but the poor old buyer can’t get the money from the bank.
The VAT increase, the imposition of the levy etc. is curtailing Joe Soap’s daily spend as well …. all adding to our economic woes.