A look at the economic impact of falling house prices. Readers Question: Explain why a decrease in the price of houses can lead the economy to experience a recession. In summary: falling house prices reduce consumers’ main form of wealth. This tends to cause lower spending and lower economic growth due to a negative wealth …
The past couple of years have seen a surge in house prices around the world. This has pushed house price-to-income ratios to record levels – in many cases, outstripping the last boom of 2007. This is a major warning signal prices are unsustainable and in recent months, prices have started to fall rapidly, with at …
Since the end of 2019, the US economy has grown at the fastest pace in the G7. President Biden can claim the fastest job growth of any president. Yet despite strong growth in jobs and GDP, there are record low levels of dissatisfaction as Americans feel the pinch of inflation and falling real wages. Firstly …
Britain is facing a chronic backlog in many public services. This includes record NHS waiting lists, a shortage of housing, delays in the criminal system, and a surge in unprocessed asylum requests. On top of this, there is a cost of living crisis, falling real wages and the highest level of strikes this century. It …
In recent years, the UK private rental market has seen a surge in demand, and the average price of renting rising 40%. Yet it is the least favoured form of housing tenure, with many renters paying an increasingly unaffordable share of income on rent. The crisis costs the government £27 billion in housing benefits, leads …
Over the next few decades, the Indian economy is forecast to become one of the world’s fastest-growing economies – adding an estimated $400bn a year to its GDP. During the twentieth century the Indian economy often struggled to increase living standards, but in the past decade has started to throw off the shackles of colonialism, …
Last Thursday the OBR published a detailed forecast for the UK economy. It made for grim reading – the longest recession for a generation, falling disposable income and real wage growth around 35% less than its pre-crisis trend rate. Why Experts Predict 10% FALL in House PricesWatch this video on YouTube Amongst the dire economic …
On a basic level net migration will increase gross domestic product, for two reasons. Bigger workforce Increase in demand in the economy. But what effect will immigration have on per capita income, tax revenues employment and other factors affecting living standards like housing costs? The Economic Costs and Benefits of Immigration – The Surprising Winners …