In times of recession, a population that is worried and uninformed on economic matters may help to prolong the financial misery

In 2008, financial speculation on over-valued US housing stock was rife. When investors awoke to the extent of the debt, Lehman Brothers went bankrupt, credit evaporated and world economies began to shrink. The global financial crisis had begun. Richard Stephens examines the psychological effects of such bad news, and argues that the more people are worried about the economy, the less they spend, thus prolonging the recession. He suggests that part of the solution may be to encourage a citizenry that is better informed on economic matters and knowledgeable of their place in the recession economy.