A recent headline read 'Every 25 seconds, somebody loses their job'.If I've done the 'maths' correctly, that's (the unlucky number) 3456 jobs a day. We are deep into the global recession, and apparently still spiraling downward.
Everywhere there are signs of financial disarray.
Even Woolworth's, a landmark in the UK since 1909, has dismantled all 800 branches across the nation. How long the shop round the corner from mine remains vacant will be a sure sign of continued troubles.
It has been long established that the world's financial woes stemmed from excessive sub-prime lending in the US, because banks were too lenient and bosses too lax. Our (our?! can I say that?) unfortunate PM, Gordon Brown, was voted into parliament just in time to take on the heroic task of resuscitating the economy. It's not going very well so far. Push push blow. Push push blow. Listen for a breath.
Nothing.
In the fall, actions were taken to encourage consumer spending. VAT was cut by 2.5% in the hopes that we shopaholics would salvage the economy, or at least give it a boost. How confusing. From a psychological standpoint, I did wonder what would be the stronger motivating factor - the opportunity for immediate gratification sought through discounted purchases of things we don't need versus the prospective precariousness of our incomes and livelihoods. Buy the shoes for 1 pound less? Or save the money for milk and bread?
It also raises a question of the collective versus individual interest. If we all went ahead and spent more money, surely there would be a substantial, perhaps even salvaging boost to the economy. But we make choices individually, and I, for one, am not about to go on a spree because I might save 20 p on a hat.
It's my understanding that the VAT slashing scheme was a failure.
We're/I'm not that naive. Some people are. I look around me and people don't seem to be behaving as though they could be 1 in 3456. Perhaps its a false confidence? Perhaps its a false non-confidence in the economy? I read an interesting article in New Scientist last year on how widespread attitudes/beliefs underpin most economical swings and could even be the driving force of a recession.
Maybe if we all collectively act in disbelief, the recession will just go away.
