I probably shouldn’t be admitting this as an aspiring journalist BUT I don’t really understand the whole economic crisis.
My summary on the state of world economy goes something like this. The UK is in recession. This is bad. Greece is broke. This is bad. The bankers did something naughty. This is bad.
Not really informative I know, but that’s my digest of world banking. An online exclusive.
The truth is, I have been meaning to find out exactly what’s up with money matters round the world and locally for a while, but as usual my own personal money matters, mainly consisting of the fact that I have very little money, is what concerns me most.
This morning however, I watched the news and I was told that the UK have come out of recession for the first time since January thanks to this summer’s Olympics in London. The broadcasters all sat there with reassuring, relieved smiles plastered on but I was thinking, we’re only going to be in recession next week again anyway.
What does coming out of recession mean though? Is unemployment suddenly going to disappear? Is Greece going to have money again? Will there be more beds available in the NHS, will the world be a better place?
Having done a quick Google on “recession” I can reveal for all you like me who regularly grumble at the damned recession without really knowing what we’re on about that the recession is “a business cycle contraction, a general slowdown in economic activity. Macroeconomic indicators such as GDP, employment, investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.
Recessions generally occur when there is a widespread drop in spending, often following an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation” according to the reliable source Wikipedia (hey, there guess is better than mine)
So I get it a bit more, but I still think the recession is just an excuse for adults to moan more, for the government to unnecessarily use terms like “Double dip” and “economic bubble” and to confuse people like me.