The Next Global Recession?

The Next Global Recession?

From The David McWilliams Podcast by David McWilliams & John Davis

April 2, 2026 · 44 min · Season 2026 · Episode 27

About this episode

The episode discusses the historical patterns of oil shocks leading to global recessions and the current vulnerabilities in the economy.

What does Muhammad Ali’s Rumble in the Jungle have to do with the next global recession? In this episode, we go back to the 1970s oil shocks, when a geopolitical crisis sent energy prices soaring, wealth flooding into oil states, and Western economies into deep recession. The pattern is striking: in 1973, 1979, 1990, and even before the 2008 crash, surging oil prices were followed by collapsing growth, falling trade, and rising unemployment. The numbers are brutal. Global growth fell from 6% to 1.4% in the mid-1970s. Trade swung from double-digit expansion to contraction. In Ireland, inflation hit over 20% and recovery took years. Each time, even when oil prices fell back, the damage stuck, factories closed, jobs disappeared, and economies never fully reset. Now it’s happening again. Another oil shock, another geopolitical crisis, and the same underlying vulnerability: we are still deeply dependent on fossil fuels. Ireland is now among the most energy-dependent countries in Europe, with some of the highest electricity costs in the EU. If every oil shock in modern history has triggered a recession, why would this time be any different? Who’s on the ropes now, and who’s about to…

People in this episode

Hosts: David McWilliams, John Davis

Topics covered

  • global recession
  • oil shocks
  • geopolitical crisis
  • economic impact
  • energy dependence

Keywords

  • global recession
  • oil prices
  • economic crisis
  • Ireland
  • energy dependence
  • inflation
  • unemployment

Mentioned in this episode

Places: Ireland

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