put mortgages prices slowly increasing as a result of the federal reserves general incompetence, finical firms taking wild risks , excessive borrowing from wall street, hedge fund failures into a blender and what do you get? the 2008/09 recession that proceeds to plunge the worlds economic activity straight down the toilet of course. All a cross the world recessions effects were felt in mass unemployment and Britain was no different as the recession sent Britain's output back to ww2, rose unemployment, debt etc. etc. the short of it is Britain was in the worst state it had been in postwar history.
in 2010 with the recession still going strong the newly elected prime minster David Cameron appointed George Osbourne as chancellor of the exchequer, the role responsible for all economic policy's and activity, to fix this crisis that has been plaguing Britain for 2 years now Georgey boy decided to put a austerity in place which is one of the two main ways you can attempt to fix an recession where the government becomes a stingy cheapskate and cuts funding/spending as much as humanely possible while raising taxes on. This resulted in 490,000 thousand government jobs being cut, child poverty increasing by 600,000, reduction in nurses
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