With a few green shoots here and there, we're in serious danger of failing to learn the lessons of the financial crisis. Yet we need to do so because, whether or not the UK economy is bottoming out, the pain isn't yet over. In the months to come, wages will be cut, unemployment will soar and repossessions will rise. Contrary to popular belief, the Bank of England will be struggling not with the forces of inflation (despite its decision to turn on the printing press) but with the perils of deflation. In the years to come, the population at large will still be struggling to cope with the longer-term costs of the financial crisis: taxes will be rising while the shackles will have to be placed very tightly on public spending.
Copyright Speakers Corner 2017