Friday, 23 January 2009

Government failure could turn recession into depression

Official figures published today confirm that the UK is in a recession, following sequential quarters of negative growth in the UK economy. The economy shrank by 0.6% in the quarter to September, and by 1.5% in the quarter to the end of 2008. The latest figures represent the biggest quarterly fall in the UK economy since 1980.

John McDonnell MP, LEAP Chair, said:

"The Government has consistently failed to recognise the seriousness of the plight of the UK economy and has consistently failed to recognise the need for radical measures to tackle the crisis.

"Today's figures not only confirm a recession, but point to a depression - especially in light of the Government's failure."

Andrew Fisher, LEAP Co-ordinator, said:

"The UK economy is now in freefall. This is more than another recession, it is the collapse of the neoliberal capitalist model that Brown told us to be evangelical about only a few months ago.

"Simply bailing out the banks again and again shows that the Government has completely failed to appreciate the scale and the nature of the current crisis."

-Ends-

2 comments:

  1. Juist like 1929 - 31, in more respects than one. Gordon is the Ramsay Macdonald of the 21st Century.

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  2. It is not a depression nowhere near it the banks will pull this up soon as large buyers of shares will see the banks prices have hit rock bottom they will buy and the shares will go through the roof making somebody a big pot of money, the recession will lift within twelve months and the cycle will start all over again, but without the moron shouting no more boom and bust

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