We are experiencing the greatest social change and the deepest recession in history.
In response a group of property leaders donated their time to take part in a Think Tank. Together we brainstormed how best to navigate though the turbulence, find the opportunities and mitigate the threats. We are sharing the output widely to help people manage the crisis more effectively.
We never have the same recession twice and this recession, combined with the coronavirus, has brought a permanent change in the way we live
Unlike 2008, the 2020 recession didn’t start as a financial crisis. It was triggered by the coronavirus lockdown, which brought the quickest and deepest drop in GDP that we have ever seen, with GDP down by 25% YOY in April.
Looking back, 2008 was primarily a white-collar recession, where stock market crashes initially affected capital owners more than workers. The following QE programme inflated assets, benefiting owners of capital disproportionately and widening inequality in society.
By contrast 2020 is a blue-collar recession. The burden for COVID-19 has fallen disproportionately on providers of labour such as healthcare workers and those in the hospitality sector and service delivery jobs. They are on the frontline and have also been the first to be laid-off when demand has dropped. This has widened the inequality divide further.