Housing slump and negative multiplier effects

This article in the Financial Times is a good example of how a fall in demand and activity in one industry can have negative multiplier effects on related industries up and down the supply chain. Barratt Developments has announced that it is laying off twenty per cent of its workers and that “job cuts across the industry could reach 60,000 out of 300,000 people employed directly and indirectly in the sector. - The Chief Executive is quoted as saying that there would be a “secondary effect on the supply chain, comprising kitchen companies, solicitors, mortgage advisers, estate agents and so on,”

BBC: “More job losses at UK housebuilders”

The Guardian: “Barratt cuts 1,200 jobs to cope with housing slump”

Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Unit 2 Macro: Migration and the UK Economy [20 May 2012]
Unit 2 Macro: Positive and Negative Multiplier Effects [20 May 2012]
Unit 2 Macro: Measuring Inflation in the UK [20 May 2012]
Revision notes on unemployment [20 May 2012]
Unit 1 Micro: Poverty and Inequality and Market Failure [12 May 2012]
Unit 1 Micro: Revision Blogs on Markets and Intervention [10 May 2012]
Unit 2 Macro: Aggregate Demand Glossary [5 May 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 2 Macro: Skills Shortages Hold Back Recovery [12 Apr 2012]
Unit 1 Micro: Revision on Maximum Rents in Housing [1 Apr 2012]
Unit 1 Micro: Government launches New Buy Loan Guarantee Scheme [12 Mar 2012]
Unit 2 Macro: Policies to Drive Economic Recovery [9 Mar 2012]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Unit 1 Micro: Empty Housing and Economic Efficiency [15 Dec 2011]
Behavioural Economics: Herd Behaviour [28 Nov 2011]
UK Macro: Risks of a Double Dip Recession [12 Sep 2011]
Starter Video: The Slums of Manilla [11 Sep 2011]
Unit 3 Micro: Oligopsony - Dairy Losses Drive Farmers from the Fields [10 Jul 2011]
Unit 1 Micro: FirstBuy, Affordability and Effective Demand in Property [10 Jul 2011]
Chinese inward investment in the London property market [12 Jun 2011]
A2 Macro: Consumer Spending [30 May 2011]
AS Macro: Extended House Price Deflation? [5 May 2011]
AS and A2 Macro Revision: Keynesian Economics [28 Apr 2011]
AS Micro: Importance of Elasticity of Supply [23 Apr 2011]
ECB breaks rank and raises interest rates [7 Apr 2011]
AS Macro Key Term: Bubble [4 Apr 2011]
Global supply chain threatened by Japanese disaster [16 Mar 2011]
Timetric: Mortgage Lending and Mortgage Rates [14 Mar 2011]
Delboy explains the multiplier effect [11 Mar 2011]
Combining monetary and fiscal policy to curb inflation in China [16 Feb 2011]
Challenges facing the London Economy [12 Feb 2011]
David Smith on Shifting Sands in the Global Economy [8 Feb 2011]
Economics Q&A: Will the rise in VAT harm the UK’s economic performance? [17 Jan 2011]
Extend and Enrich with EconoMax [29 Oct 2010]
Beware the return of the Gazunderer [16 Oct 2010]
Mortgage equity withdrawal [1 Oct 2010]
New Research on Fiscal Multipliers [5 Sep 2010]
Housing market and negative equity [31 Aug 2010]
Reasons to fear a jobless recovery [11 Aug 2010]
Groceries adjucator checks in [3 Aug 2010]
Consumer sentiment weakens as double dip looms [2 Aug 2010]
China’s housing market - fantastic interactive resource [7 Jun 2010]
Unit 2 Macro: How can supply-side policies help in a recession? [6 Jun 2010]
Housing and the British Economy [5 Jun 2010]
AS Macro Revision: Household Saving [30 May 2010]
AS Macro Revision: Consumer Borrowing [30 May 2010]
AS Macro Revision: The Importance of Consumption [30 May 2010]
Euro Land and Optimal Currency Areas - A Valentine’s Day Massacre [29 May 2010]
Warnings of hysteresis for the EU economy [29 May 2010]
Two examples of government failure [20 May 2010]
UK inflation hits 17-month high [18 May 2010]
The Financial Crisis and Beyond [6 May 2010]
AS Economics Revision - Dissecting the Recession [1 May 2010]
Issues and Prospects for the UK Economy in 2010 [25 Apr 2010]
RES Essay Competition: Preventing Housing Bubbles [12 Apr 2010]
A widening North-South divide [2 Apr 2010]
Nissan turns over a new Leaf [18 Mar 2010]
India ramps up infrastructure spending to sustain growth [14 Mar 2010]
Paris punishes the purse strings [12 Mar 2010]
Lively articles on the fiscal stimulus debate [17 Feb 2010]
50-year decline in housing affordability [20 Jan 2010]
Hundreds of jobs lost as Bosch moves from Wales to Hungary [15 Jan 2010]
Jimmy’s Global Harvest [8 Jan 2010]
Assorted Links (30 Dec 2009) [29 Dec 2009]
Is monetary policy becoming less effective? [16 Dec 2009]
Reasons to expect a Nike Swoosh recovery [13 Nov 2009]
Monopsony Power - Supermarket Bullies? [22 Oct 2009]
Gloomy summary [13 Oct 2009]
Debt repayment - a virtue or a curse? [17 Sep 2009]
The Wealth Effect [12 Sep 2009]
The Year that Shook the World [7 Sep 2009]
Keynes and the Multiplier Effect [3 Sep 2009]
What happens when the hose pipe is turned off? [23 Aug 2009]
Tentative signs of a pulse in the housing market [30 Jul 2009]
Economics Snapshot - EU Migrants in the UK Labour Market [26 Jul 2009]
Housing the global economic crisis [23 Jul 2009]
Causes of a double-dip recession [19 Jul 2009]
Race to the Market - Jacko Tribute Books [13 Jul 2009]
Ireland in the grip of deflation [10 Jul 2009]
Revision - Cost of Living [26 May 2009]
Revision - External Shocks [24 May 2009]
Revision: Slump in Global Trade and UK Economy [14 May 2009]
Revision: Deflation in Residential and Commercial Property [14 May 2009]
Policy Failure - Rising Inequality [10 May 2009]
Revision: The Liquidity Trap [10 May 2009]
Revision: Consumer Borrowing [4 May 2009]
After the storm [3 May 2009]
Sunlight is a great disinfectant [30 Apr 2009]
(Very) Tentative Green Shoots [13 Apr 2009]
Thrifty days are here again [31 Mar 2009]
Q&A: What is a Keynesian stimulus and will it work? [25 Mar 2009]
Revision presentation - UK Housing Market 2009 [25 Mar 2009]
Bubble Behaviour [22 Mar 2009]
Macroeconomics Seminar with David Miles [27 Feb 2009]
Q&A: Why when base rates change does it cause other interest rates to also change? [23 Feb 2009]
Video Case Study: Leyland DAF [3 Feb 2009]
Bootle on Deflation [25 Jan 2009]
Read the small print! [12 Jan 2009]
Interest rates are no longer the key story [8 Jan 2009]

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