Low Earners in the UK - Case Study Example

According to the deputy governor of the Bank of England, the world economy has a ‘long way to go’. According to Professor Bean’s bleak assessment, the United Kingdom has seen an undisturbed and unbroken expansion for over sixteen years. This, however, has now led the country to an end in economic growth. Professor predicts the country to see a full recession by the end of 2008. The Economy of the United Kingdom is the fifth largest in the world on the basis of the exchange rates and the sixth largest on the purchasing power parity (PPP).

Also, the United Kingdom is one of the most globalized countries in the world. The Capital of the United Kingdom - London is the major financial center of the world. It is noted that the British economy has seen a chronic weak growth. According to the International Monetary Fund in 2007, the GDP per capita of the country is the ninth highest (Kirkup, 2008). The Government of the United Kingdom along with the support of the Bank of England have been trying to ensure that the country’s economy improves.

Over the years the economy of the United Kingdom has seen large variations in the economic conditions. The economy of the entire world has seen an enormous dip in 1970 with the oil shock in 1973. The Economic systems worldwide have seen an economic strain caused due to the prices of oil being increased which influenced the Bretton Woods System of international economic stabilization and the effects made by contraceptive pills on the social dynamics (Daley, 2008). The Government of the United Kingdom has continued to take a lot of comprehensive programs to sustain the economic performance of the country and to ensure employment growth in the country.

Reports of 2006 – Commissions Annual Report and 2007 – Spring European Report clearly showed the progress of UK towards the Lisbon goals of jobs and growth.