We Got Brexit Done – What next?
Current Prime Minister Boris Johnson had just one thing in mind when he won the 2019 General Election – ‘Get Brexit Done’. After a good 3 years, Brexit is finally over with and out of the news. However, Mr Johnson has been handed a whole new kettle of fish to handle, in our post-Brexit society. In the current political climate - without mentioning the ‘C-19’ word – there is increasing speculation on whether or not the UK and global market will fall into recession. Economists are keeping a stern eye on the stock market, watching for a sharp decrease in confidence, and especially for the frantic selling of shares which may in fact accelerate the economy towards a crash.
A modern example of a repeated economic mistake is the Great Depression of 1929, a global disaster which was repeated approximately 80 years later – this time named the Great Recession. In each case, previous to the crises, there was a huge economic boom in which inflation was low and modern commodities were available due to an abundance of disposable income. However, these successes were followed by massive economic slumps bound by multiple market failures and debt. To fix the upheavals, multitudes of government intervention policies were thrown at both situations; President Roosevelt introduced the New Deal in a speedy attempt to ease the suffering of those who were affected by rocketing unemployment and the stock market crash.
On the other hand, the Labour government of the late 2000s turned to quantitative easing in order to focus on the recovery of small businesses and financial institutions. [1]Comparatively, the Great Recession could have been made less impactful due to the fact that recessions are widely known to be largely linked with employment levels, and confidence of stock market investors. It is possible that leading economists could have been more attentive to signs of the recession after the first quarter of contracting economic activity and even taken preventative steps. Both recessions took many years of hard work and intervention to recover world economic markets, and therefore it is important to use this information in order to prepare for future challenges of the 21st Century. Having this knowledge means experts can be increasingly attentive to signs of market failures and intervene accordingly, whilst considering as many externalities as possible in order to help economies thrive in coming years.
To conclude, it is important for this Conservative government to closely watch economic activity in order to prevent a fatal crash during the current global crisis; there must not be a repeat of the Great Recession of 2008 as it caused unthinkably high unemployment and economic damage which touched all parts of the UK.
