the bursting of the US housing bubble in 2005-2012 when housing prices fell and homeowners abandoned mortgages, The value of mortgage-backed securities held by investment banks declined around 2008, causing several to collapse or be bailed out, which meant that the combination of banks unable to provide funds for businesses and homeowners paying down debt rather than borrowing and spending, resulted in the Great recession in the US in 2007, similarly in 2007-2009, the UK also suffered a great recession, as a housing bubble resulted from subprime mortgages to low-income homebuyer, property prices increased and many took out mortgages without the consideration of paying back, combined with the lack of regulation on the financial system and excessive risk-taking by global financial institutions in risky financial products. This resulted in house prices falling
and many people owing more on their mortgages than their homes were worth, also consumer spending dropped and pressure was placed onto banks.
Austerity was a sustained reduction in public spending and a rise in taxes, aimed at reducing government budget deficit and the role of the Welfare State. More than £30 billion was reduced in spending for welfare payments, housing subsidies and social services.
Groups more likely to vote conservative, were protected by cuts being made elsewhere, meaning that the richest 20% of the population, were largely protected.
The effects were reductions in welfare spending, cancellation of school buildings, reduction in local government spending and VAT increases. Police, prisons and court spendings, were also reduced. Arts and culture spendings suffered a 20% decline, 800 public libraries closed, 64 museums closed from reduced funding, food banks usage increased and child poverty increased.
The Work Capability Assessment was used to determine whether a disabled person, can continue to receive benefits and what work-related conditions they must meet. It is considered unfair because the department of work and pensions aren't required to collect evidence from professionals, except in rare cases, meaning people who have mental illnesses or disabilities may struggle to gather the evidence they need. Also the majority of WCA claimants are mental health related and thus refuse to work ever again, which being inactive causes worse mental health problems. People also don't like the WCA, because they feel it is rude.
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