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This all adds to the daunting challenges facing Britain's next government. Its first priority will surely be to get the economy out of the emergency room. The parties disagree on the speed and severity of action needed to cut the British deficit, but all accept that there must be reductions in public expenditure. Inevitably such cuts will hit the nation's most deprived communities hardest. And it is in such communities that the social consensus that underpins Britain's democracy is fracturing...

Author: /time Magazine | Title: Deep Funk: Why Britain is Feeling Bleak | 3/29/2010 | See Source »

...Come to This? The last time Britain felt this bad about itself was in 1976, when soaring inflation and unemployment forced the Labour government to seek a humiliating bailout from the International Monetary Fund. Margaret Thatcher's Conservatives took power in 1979 and went on to abolish exchange controls, cut taxes and engineer the 1986 deregulation of financial markets, known as Big Bang, restoring London's position as one of the world's most important financial centers. Blair's New Labour did nothing to restrict the unfettered growth of the City, as London's financial district is called...

Author: /time Magazine | Title: Deep Funk: Why Britain is Feeling Bleak | 3/29/2010 | See Source »

...when lenders were starting to rein in aggressive loans made to small businesses. In the case of my husband, a wholesale supplier whose revenues were declining, the credit line that started at $250,000--and steadily increased for six years--matured, was briefly extended and then was cut at the bank's discretion. The bank FedExed my husband and his former business partner a letter saying they had nine days to pay back a seven-figure...

Author: /time Magazine | Title: Should You Sign a Personal Loan Guarantee? | 3/29/2010 | See Source »

...fundamental problems for newspapers. Print advertising is in decline, because advertisers increasingly believe it is less effective than digital," says George Brock, a professor of journalism at London's City University. Even the 50-pence-a-day model fails to convince Brock, who argues that a price cut works only as part of a long-term strategic plan. When the Times of London cut its prices in the early 1990s to undercut its rivals, the move made sense only as part of a "seven or eight"-year plan, he says. Circulation did increase, and eventually the newspaper was able...

Author: /time Magazine | Title: Can a Former KGB Agent Save London's Independent? | 3/27/2010 | See Source »

...emergency war supplemental bills, which totaled trillions of dollars and were mostly unpaid for. "We really believe that unemployment situation is an emergency economic situation," Senator Dick Durbin of Illinois, the No. 2 Senate Democrat, told reporters Thursday evening. "The Republicans do not accept that they want to cut off unemployment benefits or pay for it using stimulus funds which are being used to create jobs. It's a very shortsighted approach...

Author: /time Magazine | Title: Senate Republicans Want Another Benefits Filibuster? | 3/26/2010 | See Source »

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