Economy
The psychological recession |
|
|
| Economy | |
| Written by Paul Williams | |
| Monday, 10 August 2009 | |
|
Majority feel overly fearful and cautious despite being relatively unaffected by any economic hardship.
A generational divide has emerged in response to the recession, with younger Brits demonstrating a more positive outlook than their parents, who are in the grip of a ‘Psychological Recession’. Dr Peter Marsh, author of the report at SIRC, said: “Younger people are adapting their behaviours in the light of recession more significantly than the older generation. They are more debt averse and most likely to have increased their level of saving. We will see them much better prepared for the next credit crunch and able to weather it better than their older peers have this time around.” Yet while the research shows the recession appears to be having a negative impact on some, the majority of Brits have reasons to share in the positive outlook demonstrated by the under-25s. The Generation Recession Report identifies that the UK is in the grip of a ‘Psychological Recession’, with many Brits feeling overly fearful and cautious despite being relatively unaffected by any economic hardship. They may even be in a more stable and secure situation than they were previously, having potentially benefited from the fall in mortgage interest rates and from the price cutting war among major retailers. Despite more than two-thirds of the UK (68%) confessing they are worried about the impact of the recession, specifically how it could affect their job security, finances and loved ones – there is little evidence that these fears are founded. Twice as many people feel their job is safe, compared to those who have actually lost or fear they will lose their jobs (50% versus 27%). And nearly a fifth of people (18%) consider there to be too negative a view on the recession and that people should get on with life as before. A major cause of the widespread concern is down to the uncertainty over when the recession will end. Nearly three in ten (29%) believe the recession will end next year whereas 30% believe it could extend into 2011. Simon Clamp, managing director UK at Friends Provident, said: “It's encouraging that many people, including the younger generation, have taken the opportunity to become more financially savvy as a result of the recession. Our research shows that there is hope for the future as young people equip themselves to cope financially and emotionally with the challenges our economy can bring. We are urging the rest of Britain to follow suit, to take control of their money and plan for the future now.” The research also found that: - Only 38% of Brits could remember that the last recession was in 1991 - 49% of Brits who remember the last recession, feel that this recession is different from previous experiences and is affecting them more negatively.
|
|
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
