The Financial Crisis and how it affects us today

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The Financial Crisis is an event ten years ago which took the whole country into negative figures in terms of money.

Today this affects us, even though this was a decade ago.

Spendings

An example of how this affects us today is the amount of money we spend daily, weekly and yearly. Before the financial crisis, people were spending an average of £208 billion globaly every year ( including the government who recieve money from taxes). During the crisis this dropped to a mere £198 billion globaly (this is so shocking as the population significantly rose in this time). Now, 10 years after the Financial crisis, we spend £219 billion globaly each year. Although this may seem like an improvement from before the crisis, the population before was 6 billion, while today it is 7.7 billion people. If you take this into account, the average spending should be £268 billion globaly each year, the economy is currently £39 billion behind of what it would have been if the Financial Crisis did not happen.

Earnings

At the year 2000, the average earning was £45,000 globaly, while today it is still the same. One would have thought that the economy should have risen in 19 years but due to the Financial Crisis, we are still earning the same today as a global average despite having over 1 billion more people in the world. This is so shocking as the Financial Crisis happened in Britain and it still effects the global economy. In the UK, you will be able to easily see that the average earning is not £45,000, the global average today, and instead is £26,500 , a few thousand over half the average. This is a clear difference to places where the Financial Crisis did not affect as much. However, the global average has been immencely increased due to places like USA (United States of America), the UAE (the United Arab Emirates), and Japan. If these were not included then the global average would drop down to £35,000 , which is closer to our average but still eight and a half thousand pounds above.

Recovery

Both the world and the UK are still in the recovery period and have miraculously recovered around a third of the way. Experts vary onn when we will fully recover but factors like disliked presidents/ priministers and Brexit might prolongue the time it will take to recover.

Information from:

  • www.worldometers.info/ ( populations and global averages)
  • https://www.ourworldindata.org/public-spending ( global spendings)
  • Google (to change dollars to pounds, and other currency to pounds)

Comments (5)

  • Olivia-Avatar.jpg Olivia @ the BNC 03 Dec 2018

    A nicely researched and clearly written post, well done for showing your curiosity! Are there any questions you have as a result of this research that will start a discussion in the comments section?

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  • The-Ruth-Gorse-logo-250x250.jpg affable_weaver
    The Ruth Gorse Academy 03 Dec 2018

    What do you think might affect the recovery phase

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  • Evelyn-Street-logo-250x250.jpg industrious_squirrel
    Evelyn Street Primary School 04 Dec 2018

    +affable_weaver I think that spending more money on more expensive things will affect the recovery phase.

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  • The-Ruth-Gorse-logo-250x250.jpg helpful_wallaby
    The Ruth Gorse Academy 06 Dec 2018

    Things that may affect the recovery phase are the fact that the PM is not going to be too obsessed with something that happened ten years ago. As soon as she became Prime Minister, she was preoccupied with Britain leaving the EU and after Brexit has happened she will more than likely end up having to deal with all of the problems leaving the EU will eventually cause.

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  • The-Ruth-Gorse-logo-250x250.jpg affable_weaver
    The Ruth Gorse Academy 28 Dec 2018 in reply to helpful_wallaby's comment

    Couldn't Brexit itself affect the recovery phase. Already stocks have gone down and people are either spending a lot more or a lot less then they would normally have spent if Bexit did not happen. People are having mixed opinions which mean that Brexit could either make recovery phase or break it. As of 2018 the British pound has lost some of its value Brexit itself could make the euro worth more and the pound worth even less

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