Balls Predicts 'Worst Downturn For 100 Years'

by Michael Ross		comments 5
Published on 10 February 2009

Your Life

Balls Predicts 'Worst Downturn For 100 Years'

The schools minister said that the recession could be worse than that of the 1930s.

This could be the worst recession for a century, a close political ally of Gordon Brown has said.

Ed Balls made the remarks in a speech at a Labour conference yesterday, the Yorkshire Post reports. If the forecast proves correct, it would mean that the current recession outstrips in severity the 1930s downturn, which saw the Great Depression in the US and the rise of authoritarian regimes across Europe.

The schools minister is reported as saying: "The economy is going to define our politics in this region and in Britain in the next year, the next five years, the next 10 and even the next 15 years. These are seismic events that are going to change the political landscape."

Shadow treasury minister Phillip Hammond described the comments as a "staggering and worrying admission". He told the BBC: "Is Ed Balls spilling the beans here and telling us that the government sees the situation as slightly more serious than they have tried to portray?"

The government currently forecasts that economic output in the UK will contract by one percent in 2009. However, other analysts, including those at the IMF, predict a far more severe downturn of approaching minus three percent.

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Comments (5)

Thinker

Before World War 1 there was the great Depression. Before World War 2 there was a Recession. Isn't it slightly obvious that the big guys are planning something major. Let's get real here... all of a sudden the whole World has Financial Problems? Is the World still not waking up. Are we still so gullable to fall for all the tricks over and over again? Keep your eyes on the money then you will know what's going on. The Iraq War wasn't as fruitfull as was hoped so now they need to come up with a new strategy. The bottom line is: Whatever you expect - it will be different!

11 Feb 2009 20:47

Don

The rise of protectionism, stoking class warfare and one party rule in the US sure looks like a return to facism. It may be creating a WWIII rather than a depression.

11 Feb 2009 18:36

Wes Jones

I didn''t live through the depression of the 30's but I was raising a family during the Carter years, and that was bad - simpled example: canned goods would have 3 or more price tags (pre-scanner days) on it, each more than the other if you pealed them off. One of my daughters is in financail trouble but she insists on buying the kids (17 & 14) new cell phones, latest ipod, and they eat out all the time. She is not a victim of the economy or Bush, she is just like so many that cannot stand to not do what they want to any time them want to.

11 Feb 2009 17:30

FLNEART2C

The richest poor people live in this country. I firmly believe that the wealth has to trickle down. In countries where everyone is equal everyone is equally poor & miserable. At least in this country we can afford to complain about the price of gas, when some people don't even have cars, the price of food, when many don't have any. This country's larger percent is the consumer, "us" and a smaller percentage "government". We literally THROW away our money. One of the biggest problems right now is in the housing market.Yes, the banks gave loans out to many who shouldn't have gotten them, but anyone responsible enough knows that if they can only afford a $800 mortgage payment, why did they get into a $2000 one? Because banks approves me for more doesn't mean I can afford more! THINK, we need to become more responsible for our actions and stop putting fingers and blaming on the government,our president or anyone else!

11 Feb 2009 16:50

honeybunny

This a new name for DEPRESSION ? this is far less than the depression of 1930 and I Ilived in it. Food lines. Innersoles for your shoes made out of card board boxes. We never had shelters then. Sometimes 3-4 families lived in 4 rooms. I remember living in the country.No electricity. Out door pumps freezing up. Bricks in your bed to warm them up for the night and a pot under every bed. You people are not having it that bad. We survivved and so will you. Just get toughtened up a lttle and you will appreciate what you have if there is a next time. Europe was the same only we did not know it because the media was not all over the place with the latest news. We are Americans. Tighten up your belt and help your neighbor and stop your crying. This too will pass. See how take out spoiled you ? You cannot take the time to pitch in and help but would rather bitch about t. That is not how you survive. Love your neighbor as yor self and you will make it. Forget them and we all fall apart. amen

11 Feb 2009 11:25

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