Londonomics: The Upside of Down

By EconMike Last edited 123 months ago
Londonomics: The Upside of Down

When things are changing fast, it’s best to shut up about the future, lest you look like a fool. Despite this sound advice, Team Londonomics thought it was about time we weighed in with some hopeful note amongst all the market gloom.

So donning our special rose-tinted glasses, here are a few positive things we hope might come out of the recession.

  • As property prices fall, Central London and the ritzier parts of zones 2-6 will no longer be virtual rich-only zones.
  • We’ll be free of our reliance on the financial sector as one of the major — or the major — engine of London’s prosperity.
  • More small businesses will open up across the city, as unemployed, redundant and just plain fed up City folk turn their energies towards creating and funding small business that create things and provide services, rather than just shifting money around.
  • That nagging feeling that everyone’s richer than you — call it status anxiety or aspirational syndrome — will evaporate, replaced by a new frugality and an environmentally friendly focus on reusing, recycling, repairing, saving, and generally living within one’s means.
  • That’s not to minimise the stomach-churning tough times ahead. This is bad, and it will get worse. A lot of Londoners will lose their jobs; some will lose their homes. As is the case with most economic downturns, those with the least at the beginning will be hardest hit during the recession. There’s a chance we might face some knock-on effects like an increased crime rate, and we should be prepared for more tragic stories about suicides and people driven to desperation by the hard times.

    It won’t be pretty. But London has faced numerous recessions in its history. It will still be standing — and most likely bigger and richer than ever — after the dust settles from this one.

    Image from MarkyBon's flickr stream

    Last Updated 30 October 2008