8 Years After O8
2016 marks 8 years on from the great financial crash of 08. The collapse of Sub-Prime mortgages in America led to an economic implosion destabilising world markets. Lehman Brothers declared bankruptcy and the American economy fell into recession. The effects of this collapse quickly shook markets around the world as banks went bust throughout Britain leading to continuous policies of Austerity. In Europe, Greece, Spain and Italy all faced horrific economic difficulties which are still yet to be resolved.
In the last few years there has been talk of an economic recovery with George Osborne assuring the electorate throughout 2015’s General Election that he had a ‘Long Term Economic Plan’. Growth in the US has remained steady at 2% and the Crisis never took on the same Character as the Great Depression of the 1930s. However, Europe has been less fortunate, with growth being sluggish throughout the EU. In a debate in the Oxford Union, the Ex Greek Finance Minister, Yannis Varoufakis, declared Greece to be a ‘Failed State’ due to its economic collapse. Spain’s youth unemployment is still at 48% and with the Migrant Crisis, Brexit and the end of Schengen all bearing down heavily on the EU it hardly appears a stable bet. Brazil is currently experiencing its longest recession in history which has just passed the two year mark; Russia’s economy has continued to fall due to Western Sanctions; China’s markets have become increasingly volatile as it straddles between Free Markets and State controls.
To top everything off the Oil Price is falling further everyday with some suggesting that it could reach as low as 10 Dollars a barrel. The result is States such as Saudi Arabia who rely on Oil Revenues for up to 85% of their income are suddenly running up huge deficits brining further instability to the Middle East. Does this all point to a global economy on the brink? Will 2016 be the year we return to crisis or are these events overstated in importance and will the world continue to grow with some readjustments to the global economic order.
To see the opening of the debate click the video above, to listen to whole debate click the recording below.
If video player fails to load click here
If recording fails to load click here
Wednesday the 24th of February- 7:30pm