Have we kissed goodbye to boom and bust?

Gordon Brown famously declared that he had broken the cycle of boom and bust in the UK some time ago only to have this boast thrown back in his face. While many at the time questioned the decision to declare the end of the infamous boom and bust economic cycle in the UK, and around the world, Gordon Brown was adamant that he had cracked the code!

The truth is that the boom and bust economic cycle is here to stay and history shows that it has always been in the background. In the boom times it is the feel-good factor which sees more and more people spending beyond their means while in the difficult periods there is a knee-jerk reaction for many people looking to conserve as much cash as possible if they believe problems are ahead.

There is no government in the world which can legislate for human nature which is ultimately the main emotion behind the boom and bust economic cycle of the past. Unfortunately, we need to admit that this is the situation and always will be even if governments and financial institutions can in some way affect the short-term outlook for the UK economy.