How did the Financial Crisis affect the UK?

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The 2008 Financial Crisis is the worst economic disaster since the Great Depression of 1929. It is important to consider how the other countries were affected by this, because they have suffered the same as UK. But how was the UK affected?

UK productivity fell sharply during the recession of 2008. The Northern Rock was the first high profile victim of the crisis because it was forced to apply to the Bank of England for emergency financial support. An aspect of the UK economy and its vulnerability to the financial recession has been discussed in the study conducted by LSE (London School of Economics and Political Science. According to the research, UK economy is vulnerable to the financial crisis due to its reliance and specialization mostly on financial services and trading activities. Decline of the importance of the financial sectors had more negative effect on overall UK economy as a result of higher unemployment rate in the workforces. This is further followed by sharp decline in consumer spending and decreasing foreign capital inflow.

There was a higher number of homeless people and this is because of a chain that led to this. From my own knowledge, the banks have borrowed too much money to the people who couldn't pay back. This led to banks having a shortage of money. People saved their money carefully, which meant the business owners had no wage. The results were that the Government had to give their capital to banks, instead of schools, hospitals, ect.

The question is: who is to blame?

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