A Quote by Frances O'Grady
Britain is a textbook case of how growing inequality leads to economic crisis. The years before the crash were marked by a sharp rise in remortgaging and the growth of 0% balance transfer credit cards. By 2008 the UK had the highest ratio of household debt to GDP of any major economy.
Related Quotes
Britain is a textbook case of how growing inequality leads to economic crisis. The years before the crash were marked by a sharp rise in remortgaging and the growth of 0 percent balance transfer credit cards. By 2008 the UK had the highest ratio of household debt to GDP of any major economy.
Within a few months in 2008, household finances were crushed as asset values fell, millions of jobs were lost, countless credit cards were canceled, and thousands of homes were foreclosed on.
Rising inequality can create a more highly leveraged economy, and it can then make the economy vulnerable to a crash like 2008.
If you are moving the informal economy into the formal economy, and if the transactions which for years were never reported as part of GDP are now transacted through banking channels, it will only add to the GDP, not reduce the GDP.
The financial and economic crash of 2008, the worst in over 75 years, is a major geopolitical setback for the United States and Europe.
Barack Obama is a president who, when he had to deal with the 2008 economic crisis, has led the American economy on a completely different path than the one that Europe has chosen eight years later.
There was, of course, a global financial crisis. But our Labour predecessors left Britain exceptionally vulnerable and damaged: more personal debt than any other major economy; a dangerously inflated property bubble; and a bloated banking sector behaving as masters, not the servants of the people.
The Canadian debt-to-GDP ratio will continue to decrease every year, including the first three years under the Liberal government. That is what we're focused on. We know we need to invest in the kind of long-term growth and short-term job creation that Canadians expect, and Liberals the only party offering to do that.
The problems of 2008 were never cured. The Federal Reserve's solution to the crisis was to lend the economy enough money to borrow its way out of debt. It thought that if it could subsidize banks lending homeowners enough money to buy houses from people who are defaulting, then the bank balance sheets would end up okay.
Repealing the estate tax won't create jobs, it won't boost GDP, and it won't add efficiency to the market. Instead, repealing the estate tax will simply add to the debt, hurt our ability to build a stronger economy and worsen economic inequality.
So we are in for years of debt deflation. That means that people have to pay so much debt service for mortgages, credit cards, student loans, bank loans and other obligations
that they have less to spend on goods and services. So markets shrink. New investment and employment fall off, and the economy is falls into a downward spiral.
Not only does the UK have the highest levels of regional inequality among the major economies, the imbalance is widening, not narrowing.
When gross public debt exceeds 90 percent of GDP, economic growth tends to decline considerably.
I grew up in a world before people had credit cards. There were no magic cards - it was all about budgeting.
For any economy, there are two basic factors determining how many jobs are available at any given time. The first is the overall level of activity - with GDP as a rough, if inadequate measure of overall activity - and the second is what share of GDP goes to hiring people into jobs. In terms of our current situation, after the Great Recession hit in full in 2008, US GDP has grown at an anemic average rate of 1.3 percent per year, as opposed to the historic average rate from 1950 until 2007 of 3.3 percent.
Lenders look at potential borrowers from many angles before extending credit: How much of its income will a household need to put into debt repayment? How large is the down payment? Does the borrower have a job with a stable income? What is the borrower's credit score?
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