Last updated at 2:37 AM on 10th January 2009
The is barely a week old and the direst predictions are already being realised, with news of fresh job losses being brought every day.
But there is one important aspect of this recession which differentiates it from the economic downturns of 1981 and the early 1990s: this one is hurting only those who work in the private sector. The public sector, on the other hand, has been ring-fenced against the worst effects.
The truth is that Britain is moving towards an economic apartheid. While the State continues to offer higher wages, generous benefits and goldplated pensions, those in the private sector are forced to suffer wage cuts, work unpaid overtime, take even shorter holidays and make all kinds of other sacrifices to keep their jobs.
At the head of this new 'public sector aristocracy' stand the country's 646 MPs, who return to Parliament on Monday. They have just enjoyed a record-breaking 24-day holiday - the same amount that most people get in an entire year.
Thanks to this protracted break, our indolent MPs have not yet debated either the domestic crisis caused by the recession, or - and this is equally shameful - the world crisis that has followed the Israeli invasion of Gaza.
The contrast between the increasingly harsh conditions endured by the bulk of the British population and the cosseted comfort of our political directorate has been very troubling for many years. The economic crisis, however, makes it grotesque.
In the real world, occupational pension schemes are being closed down or altered beyond recognition. Yet MPs' pensions remain protected with increasing amounts of taxpayers' money
Whereas hard-working families struggle with their monthly mortgage payments, MPs have their mortgages paid for them by the taxpayer - and, more incredible still, are allowed to use any profits made from selling their houses to invest in the property market.
Equally, while many people are tightening their belts when it comes to even small purchases of household groceries, MPs' generous expenses system allows them to squander taxpayers' cash on their own furniture and home improvements.
Although the Commons authorities had agreed to make public details of these lavish expenses, last autumn's deadline shamefully passed with Speaker Michael Martin and the House of Commons Commission (the group of senior MPs responsible for policing the expenses system) failing to honour that promise
The agreement to release details came only after a long battle by Speaker Martin and MPs to defy a ruling by the Information Tribunal that they should publish their expenses.
This affront to democratic openness took place against a backdrop which involved a series of scandals, of which perhaps the most distasteful was the revelation that the Tory MP Derek Conway had diverted tens of thousands of pounds of public money to pay his son for 'research duties' - even though he was studying at Newcastle University and there was no record of any work ever being done.
What's more, MPs wasted approximately £150,000 (of taxpayers' money, needless to say) taking their case to the High Court. The verdict of the judges was damning, however.
Ruling in favour of publication, they declared that there was 'no doubt that the public interest is at stake. We are not dealing with idle gossip, or public curiosity about what, in truth, are trivialities. The expenditure of public money through the payment of MPs' salaries and allowances is a matter of direct and reasonable interest to taxpayers.'
In the wake of this withering condemnation, MPs had no choice but to give in.
Therefore, last May, they announced that their expenses would finally be placed in the open, promising publication by the autumn. In October, the date was put back until Christmas. Yet, still, nothing has been published.
Last week, I contacted LibDem MP Nick Harvey, who is the spokesman for the House of Commons Commission (headed by Speaker Martin). He told me that there is no chance that anything will emerge until April and that the intention is to publish their expenses by the summer recess in late July.
Harvey said the logistics of processing so many MPs' receipts has proved far more complicated than originally foreseen.
I do not doubt Nick Harvey's good faith but I'm afraid to say that I do not believe a word he says.
First it needs to be borne in mind that this delay in the publication of MPs' expenses follows a long pattern of obstruction by the Speaker and senior MPs of all parties.
Apart from the wasteful High Court action, as I revealed in a film for Channel Four Dispatches called Nice Work If You Can Get It, they even sanctioned the abuse of Commons procedure in order to keep secret the lavish scale of MPs' spending, by pushing through a bill which exempted them from provisions of the Freedom of Information Act.
Of course, MPs of all parties have every motive to keep details of their expenses secret.
They realise that publication of their claims could be highly embarrassing, revealing just how callously some of them have abused their privileged position as legislators to feather their private nests. In certain cases, some MPs may fear that publication could lead to questions about fraudulent claims.
Above all, the argument that it takes a year to make expenses claims ready for publication is not credible.
Just over three years ago, in November 2005, the Scottish Parliament promised to disclose the expenditure of Scottish MPs. Exactly six weeks later, they were published.
I believe that the delay in Westminster is a national scandal and that MPs who return to Parliament this week are treating voters with contempt. The fact is that they have milked their expenses system in a way that would be unacceptable in any other walk of life.
They know that publication of details about how they have squandered taxpayers' money - particularly at a time of unprecedented economic crisis - will lead to an outcry.
This state of affairs is not just immoral. It is profoundly damaging to our democracy. As recession bites, we need politicians who understand the difficulties of ordinary voters and who do not appear to be self-interested chancers who put private profit above public interest.
Those MPs who will drift back to the Commons on Monday - tanned from skiing holidays or visits to exotic beach resorts - have not merely lost their connection with how ordinary people live but, more worryingly, have lost all connection with ordinary morality.
Seven months have now passed since Speaker Martin promised openness and transparency. There is no excuse for further delay.
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