Why The UK economy is in Recession but US is Booming
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- Опубликовано: 1 июн 2024
- A look at the divergent performances of US and UK. Why is US booming but UK stuck in recession. Text version - I go into a bit more detail on different inflation.
www.economicshelp.org/blog/21...
Contents
00:00 Intro
00:59 US Green Investment
2:10 Failure of UK Tax Cuts
3:25 Uncertainty/Brexit
4:19 Impact of Gas Prices
5:56 Housing Market
7:15 US consumer debt
8:34 Higher UK Tax
9:25 What Happens Next?
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► www.economicshelp.org was founded in 2006 by Tejvan Pettinger, who studied PPE at Oxford University and teaches economics. He has published several economics books, including:
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I made a new video about why Americans feel the economy is rigged against them. Despite "strong economic growth". ruclips.net/video/ScfqK5gNfiE/видео.html
Simply put the UK outsourced, cut cut investment and rely solely on the financial sector. The politicians are not capable of decisions for a 20 yr plan, it's feels like they are probably the worst of the worst in my lifetime and I'm 65.
Well also they cant steal from India now
The US outsources and imports everything, they have the largest trade deficit in the world
Good and, as usual, very insightful review. One thing I was missing, was that the rising taxes on the UK came with further austerity in public spending. Instead of investing borrowed money in education (skilled workforce), healthcare (healthy workforce) and infrastructure (improving of capacity and agility, and affordable housing), four consecutive governments have squandered the money to giving tax brakes to the already super rich and funneling money into their own pockets.
yup. we have added 2 trillion to national debt in 14 years whilst having crippling austerity. now people with mortgages havent got any money left after huge hikes and zero help from gov.
but the newspapers tell us its labour who are shit with money?!?! just like how conservatives blamed labour for the global banking crash.
The US just spends borrowed money on the military. $6 trillion added to the national debt under Joe Biden. It now sits at $34 trillion and growing. They want to borrow $720 billion for the next 3 months.
The US is all defecit spending.
Most workers are over educated. Most workers aren’t off sick due to the NHS.
They didn't actually give many tax breaks, tons of the money appears to have gone missing, into contracts that weren't fulfilled, often companies that had ties to the politicians. In any other country it'd be called corruption. So there have been no tax breaks, but no public spending either.
@@PIASOC There's a huge section of UK society that is trapped in a spiral of poor health, education and destitution. Wages rises have been suppressed for too long, look for instance at the state of doctor salaries - compared to US, Australia, New Zealand, Canada, Germany and Ireland. Lawyer salaries aren't great either. A lot of professional jobs in the UK are not earning anywhere near what they were in the early 2000s.
Workers might be over educated in academic aspects, but what about technical ones? UK is famously bad at training staff technically.
Your videos make me depressed to be living in the UK. But on the other hand facts are facts. There’s no point avoiding the truth.
That is one major difference between the UK as one example and China whose authoritarian government has chosen to suppress all reports about its declining economy. And when does suppressing basic information to the people produce a positive benefit in the long term?
If I was young and had the opportunity, I'd leave the UK & go to the US in a heartbeat. I can only see a slow steady decline over the coming decades for the UK. I fear in 20 or 30 years time, it'll be a lot worse than it is now.
Bad times create strong people. Strong people create good times.
@@Andygb78 UK voting works yes?
I think the US UK difference was because the US borrowed to invest in future industry where as the UK (liz trus) borrowed to cut tax
It goes back further than her
How depressing and hopeless the UK seems. No easy answers to get out of their mess.
We need a fundermental change of direction, ambition and mindset . Bold decisions not half hearted pipe dreams
I’m just investing solely in companies outside of the UK, I might have to live here, but I refuse to go down with the ship.
@@AName-pp8di hopefully you have an exit plan in case of total societal collapse
@@antimatter7629😂😂😂😂😂😂
We'll recover, we always have
Basically because the UK has no industrial strategy.
Nahh becoz uk only knows to plundered any country run ur country by thire resources & wealth whole Europe is still doing this in Africa lol 😂
also, the gov in UK only helps big business and their donors, nobody else. spanish gov put in loads of regs to stop banks fleecing their population. we basicaly halved the bank tax rate then did nothing to help the people struggling with huge mortgage rises.
The UK is over regulated as are EU states. Heavy regulation limits the creation of new businesses especially manufacturing investment. Also GDP is based upon declared profits. Profit shifting and illegitimate costs are a real problem among established businesses in the UK taking wealth away from official GDP figures and alot of the time out of the country entirley.
Industrial strategy implies that the free market isnt all knowing and the solution to everything so thats socialist. Lets just lower taxes and give money to the rich :)
Industrial strategies is the government literally picking winners. Why not just create a more business friendly environment? For every 1 successful part of IS, there are 100 failed ones at the tax payers expense.
I think the UKs problem is because we have gone through so many PM’s and ministers until we’ve now reached the 3rd division of quality. And what we have got is a vacuous intellectual position, everything is confused. Inadequate quality of leadership and too many young people rising up the ladder, self service, thinking they deserve a senior position but they aren’t ready for high office. UNFORTUNATELY PRIME MINISTER LIZZ TRUSS HAD NO LEADERSHIP QUALITIES, AND COMPLETE INTELLECTUAL EMPTINESS WHICH THEN RATTLED THE MARKET.
the problem with liz truss is she swallowed the red pill whole and went full tory thinking that deregulation and removing taxes would be enough on its own to feed growth, this is known to be a flawed philosophy and her proposed unfunded tax cuts told the financial markets the uk government was a bad business partner, and after the tories threw the whole UK economy under the bus to save the banking sector too. no honour amongst thieves clearly
This has nothing to do with number of PMs for every country changes PMs or President too that’s why there is GE. Our British PM managed to halve our inflation which is good so this was caused by pandemic but our inflation is halved and according to our Uk economists there is a massive boost on our Uk economy for this is just mild recession in weeks it will be over.
It’s because people of this country were stupid enough to keep on voting for the same incompetent government. It’s not just about the PM it’s about his cabinet and all the other incompetent clowns on the back benches.
@@Trendycosmetics-os6gh I wish I could share your optimism... Because all the fundamentals aren't looking good! And Western governments have perfected the art of artificially inflating our economies, when it suits them, at the expense of future generations...
But yes, you're right! No one particular PM or President can claim full responsibility for our economy... Whether it goes up or down! Our economic systems have become vastly more complicated in recent years, and these boom-bust cycles play out over multiples of years. Indeed, a recession is actually a part of the natural economic cycle anyway... Which they tried to offset with low interest rates, so now we are paying that inevitable price!
It's just that this time, I'm just not sure how costly that this price will be... But as usual, economic gravity ALWAYS wins in the end! What goes up... Inevitable comes back down! That is just the nature of things...
Remember. The tories are "Strong and Stable" lmao.
Please consider making a video on the pros and cons of immigration and the UK economy over the last 30 years say.
Hypothesis - US are importing economic output, UK are importing economic liabilities.
I gave up. Moved to Madeira and now make more money and can save more. Go where you’re treated best! And that’s not the uk where you’re seen as a cash cow, nothing more
Hi Andrew! Please help me on landing a coding job or internship. Please drop your socials so I can reach out you. Thanks
@@hydrolifetech7911 hey what would you like to know? ☺️
Madeira is a great island. Amazing paragliding there.
Love Madeira, are there good job opportunities for Brits out there?
How did you get into that position to code abroad? I just finished uni last year doing computer science but I really dont want to spend the rest of my life here
Maybe if the tories didn’t sell 80% of the new North Sea oil fields product overseas we may not have to be reliant on topping up our fuel from overseas?
Madness
Also ordinary people are overtaxed in the uk while the rich can afford loopholes and follow the example of Sunak and Co who avoid paying due taxes with complex avoidance.
Why is europe doing so badly?
do you mean the EU or continental Europe excluding the united kingdom? are you averaging germany's economy with greece?
@SamuelButts several major eu countries sweety
Perhaps you could explain, give some analysis and details?
@fairybuddy-angel2035 for what?you can search the gdp growth figures for France, Spain, Germany and Italy? Give it a try? do you need help using Google
Canada's having similar problems, especially with housing. It's been decades since we were so misaligned with the American economy. Incredibly depressing to see their wages growing while ours fall right across the border.
Housing is not an economic problem - it's more of an immigration problem. Canadian economy was tradionally dependant on natural resources such as oil uranium gold lumber - and investments in thise industries are not paying off. Canada was never a high tech economy like the US.😊
Another big reason why "gas" prices to hurt America is that we can drill and get oil and natural gas thanks to the modern fracking, horizontal drilling which can get more oil and natural gas than ever before. Modern drilling and extraction techniques help a whole lot. A big reason why we extract more oil and gas than even the Saudi's.
How about the multiplier effect on energy expenditure? In Europe there isn't a multiplier effect because energy expenditure is mainly out of Europe. The money is lost and it is vast. In the US meanwhile energy expenditure is made within the US so there is a multiplier effect for the US economy on energy expenditure. The money keeps on being spent in the US.
Right. Energy is a huge problem for the EU.
@@zuzanazuscinova5209Yes it is.
Primarily thanks to the war in Ukraine and the ending of cheap Russian energy supplies.....
This is why I have some slight optimism for the UK in the future though, we are becoming huge players in offshore wind energy and are one of the fastest at decarbonising our grid which should begin to yield us with cheaper energy, once we properly legislate energy markets so we aren't paying whatever the most expensive energy source is being used on that day. There's still a lot of work needed with upgrading the grid and smashing the NIMBYs/planning reform, but we are potentially on a good course with the future of our energy security.
1:51 please don't try and blame it all on Brexit, when countries like Germany are in an even worse state.
@@patdbean They can't help themselves.
It'll always get shoehorned in there somewhere.
They would counter that if it hadn't been for Brexit everything would have been SO much better for the UK now.
Utter cobblers, but they'll keep banging that drum I'm afraid.
This channel has swiftly become my number one place to get reliable domestic economic news of the UK's performance. Its rare these days that I would consider buying a quality news paper and definately cannot afford the Financial Times so this channel is important.Thank You.
As we saw in his take down of Thatcher, this guy has his own socialist bias agenda. He’s not very objective.
You clearly have not got a clue if you believe this clickbait nonsense - the UK is not in recession.
The US will outperform the UK in general because it has abundance of natural and human resources. It's common sense.
The UK doesn't make anything -they have been reliant on finance and services, but as they left the EU, those sectors are slowly relocating to mainland Europe.
Where do you get this information from thin air? Uk financial sector is still out pacing everyone, a recent review also just put London tied with New York and the next European hub Frankfurt not even considered in the top 10 of the index. London is still continuing to grow, germanys manufacturing sector is in total decline and France continues to stagnate, where are you getting your information from?
and then they complain about the wealthy, even though it’s pretty much the only source of income
@@ThomasSmith-tv7gp I work for a global asset management firm, and we moved some entities to the EU after Brexit. The remaining UK subs are loss making and need financial injections from the US based parents. In short, the entire European economy stagnates.
The U.K. was the 5th largest exporter in 2023. Exporting $800B-$1T worth of goods and services, most of this is services (we are 2nd in service exports and 14th in manufacturing) but still similar manufacturing exports as Russia.
@@ThomasSmith-tv7gp 44% of the largest financial services firms and 37% of Fintech companies said they plan to move part of their operations to the EU
My five theories on this are:
1) The US is fuelling all this with huge debt, which in part they can get away with because they control the world's de facto reserve currency.
2) The US dollar is also unusually strong, which helps to enable point #1.
3) Energy sector isn't hampered by environmental laws to anywhere near the same extent as the UK (or the rest of Europe for that matter). The UK could spur a lot of growth just by reopening all of the North Sea gas fields and enabling a shale gas boom like the US did a decade ago. Whether this would be palatable is a different matter.
4) I suspect many of the long-term sick aren't actually ill, they've chosen to claim welfare because it pays better than a low wage job due to the welfare trap.
5) Wrt immigration, the US is largely importing high-skilled workers (a net economic benefit) while the UK is importing too many low-skilled workers (a net economic liability that exacerbates the pensions problem).
Wrt to point 6: UK isn't in a position to attract highly educated immigrants, USA is. For all the reasons you mentioned about wages, living standards and taxation.
@@pritapp788 Well it can at least stop importing the unskilled ones.
Nailed it, as an American, the growth is deceiving. It’s like a house of cards. Medicare Part A is insolvent by 2026, and Social Security by 2034. It will collapse, 80% of all the money printed in the US that has been printed since 1776 as been printed in last two years
I disagree with the last point- since new labour we have set an expection for most uk born people to do skilled jobs (e.g office jobs), our shortage is in people willing to do the unskilled jobs (e.g. building, farming operating high street shops)
The solution that is productivity investments such as education and training and more automation, so that these jobs create more value and pay more (the reason for the unwillingness is invariably the low pay).
This is something the UK has been particularly bad at, partially because businesses were disincentivised to do so as there was a big pool of easily exploitable cheap labour to substitute for productivity gains.
That investment line is almost the whole story. The UK needs a bold industrial strategy. Admittedly the UK does not have the world reserve currency and the worlds largest consumer market to prop up government spending, but that does not really excuse the lack of strong and clear support for UK industries that the USA is doing. Instead the UK is continuing to muddle along, there have been encouraging moves but nothing on the scale required to make serioys movement happen.
Another part of this is the complete lack of cross party concensus in the UK which actually the USA does quite well with, despite the raucous politics.
Very informative👍🏻
It would be helpful if you could ,keep the charts on the screen a bit longer, to enable us to read them more.
this is YT, you can hold a video..
Don't be fooled, America. Don't spend frivolously. Save as much as you can. If you can build a surplus of the essentials, do it. Whether you see it or not, there's trouble on the horizon.
America might be booming now, because this is a Bidenomics bounce to help him win the next election so, I wouldn't put much stock into this! Once that election is over, those chickens will be coming back home to roost!
*United States
Americans shouldn’t save, they should invest. Savings have very little return. Better to put your money in a good fund where it can grow.
We also lag in the tech sector. There are no Big tech firms in the UK.
Really informative analysis 🎉
Is that a fellow Guardian?!
Great comparison - Interested to see more about global economics.
The UK isn't in recession, growth is low, true, but it is not in recession.
That’s what my friend in UK told me.
It is now, when I made that post the latest figures hadn't been released, however so are at least 6 EU countries.
Thank you❤
I can't quite remember on which TV programme Roland Rat featured on all those tears ago.
Hard to imagine the U.S. economy running out of steam this year, given that the Fed expects further moderation in inflation and is expected to cut interest rates four times in 2024.
Keep the amazing videos coming!
The UK is not in recession you 🤡
Hypothesis before watching - energy independence is a huge advantage.
We take risks. We start businesses. I am 52-year-old woman with a preteen. I just went back to college and graduated during COVID. President Biden's help was a godsend. I began my business and I work like crazy while my German husband works 50 to 60 hours at a Startup. We lived in Switzerland. He could not start an Aerospace company with his friends after four years of Swiss/NASA/ESA experience. We decided to return as I wanted a new career. Our friends in Switzerland and Germany are so smart, but they were frustrated not being able to start anything becase of all the red tape. It is easy just to say the US prints money when you don't see how we go about with not traveling as much so sustain my company. Yet, we are happy in my birth city of Miami which is now expanding into everything. We can move around without worrying about the language since we are both English and Spanish speakers which is ideal in the USA.
The per worker productivity of the UK is very low and has less innovation than the US, unfortunately
Would have been better to compare Germany with the UK perhaps?
The best comparison for the U.K. is always France - very similar GDP and population and split of services/manufacturing. The differences are that France is more “mixed economy”, ie more state involvement and agriculture is bigger because it’s physically much larger and has much more cultivable land. But the two are otherwise remarkably similar (even if neither likes be reminded of it).
Would that make things better?
While that may make the UK seem better 'by comparison' it only masks the issues that remain regardless of who they are compared to.
The average EU is doing better than brexit fiasco
@@apb2081 Not according to the data
The U.K. needs the vision it once had. It’s worth mentioning that I think the U.K. could take a page out of the UAE, Singapore and Japan as far as all 3 countries knowing how to leverage their geographical characteristics to boost economic growth. The U.K. is topographically similar to the three latter countries, yet isn’t performing as well as they are. All four countries are surrounded by bodies of water- which normally should allow for not just the transportation of goods and services, but also the transportation and aggregation of ideas. The U.K. can also start by looking at opportunities for agglomerations in diverse industries, besides financial services. The use of the River Thames would facilitate the circulation of ideas that would come from this. The U.K. has done it before. London became the world’s financial centre in part because of the Thames, and it’s a smaller body of water, compared to the oceans that surround the 3 aforementioned countries. The Thames also was responsible for the London Docklands being the world’s biggest port at some point in history. It equally gave the British Industrial Revolution the rapid momentum and pace it had. It’s shocks me that the British could be so geoeconomically short-sighted, but we do have idiots in Westminster so..
The "vision" was to conquer other countries by force to extract resources and manpower from them and force them to buy British goods. No longer feasible and it has not been replaced with any new vision.
You can't really compare the UK to those countries as they are much smaller geographically. But I agree with having a vision long term for the government.
Brilliant analysis!
I do not think UK has low confidence, on the contrary, UK has unbelievable high level of confidence albeit it is arrogantly blind and sadly misplaced.
3:20 keep in mind marginal propensity to consume, tax cuts can increase demand but have to be targeted towards poorer people in society, people working pay check to pay check. Whereas this budget targeted the richest and would cause no growth, as seen with the tax cuts done in the US under the last president. Or just any tax cut ever that has focused on corporations and high income earners.
Tax cuts increase demand by whom?
Poor people already pay minimal taxes. The problem is productivity. Low productivity in the UK is the reason for low wages. However, it's hard to improve productivity when all you have is financial services and very little "real" economy.
@@zuzanazuscinova5209 firstly we have the highest tax burden since WW2 secondly even if we pretend you are correct, VAT is 20% of everything you spend in a shop, that's one right there. £10,000 of your minimum wage is taxed at 20%. Look at the tax on alcohol. Productivity has well outpaced pay since the 1980s. Maybe if British workers weren't so poorly compensated then they'd be more productive ever thought about that... Do you think most people work in finanical services?
If I hear anything about Brexit I'll start laughing, especially when comparing previously leading economies in Europe doing worse
So you think Brexit has helped our economy? Exports? Fishing? Farming? Weaker pound.
Nice video
brilliant video! Informative and not throwing out economics jargons like other so called "experts" on TV
Love that you gave the example of US 30 year mortgage vs UK 2-5 year, made such a huge difference on the living cost. Think would be great to see podcast style of content with guests, would really enjoy!
Glad you enjoyed it!
Those in power are not interested in British manufacturing. Manufacturing is done by the working classes and those outside of the SE. For how many years has there been political talk of rebalancing the economy so it’s not so reliant on financial services? Yet manufacturing has continued to decline. They pay lip service to it but in reality nothing changes.
How are you going to persuade companies to manufacture in the UK? Labour cost a lot higher. Government subsidy perhaps? But difficult to compete in global market if continuity of production needs constant government subsidy.
@@PranicEnergy compared to who? Not the US or any Northern European countries. This isn’t something that happened overnight this stretches back to the 70s 80s. Unions also guilty of it because any approach to modernise our companies to increase efficiency (and lose jobs) was refused. Hence We torpedoed our own car industry whilst the Japanese, South Koreans seized it with both hands. We now have a Prime minister who begs foreign companies to open here because we’ve fallen behind. No high tech manufacturing is done here on an industrial / global scale.. semi conductors / microchips etc. There is no pan political party strategy or long term thinking. Our country has over relied on the financial sector because it’s the only truly world market leading thing we have along with New York but even that is seemingly wobbling since Brexit. The economy badly needs rebalancing, we need to find our niche for high value add manufacturing, but also understand how it is that Germany can seemingly have a steel industry 7 times as large as ours (2023) and now we’re about to close Port Talbot. This is largely down to Government policies over the last 40 years.. decline decline decline. Is it good? The flatlining of productivity in our economy compared to other similar developed economies demonstrates that something is going wrong. The talent & pedigree is here it’s just not being utilised. Nearly every F1 team is based in the UK bar 2. We just don’t seem to leverage the talent when it comes to building global manufacturing businesses on a big enough scale.
@sam, that is not how capitalism works. Mony Power has overtaken Governmental Power since Elizabethan days and dictate how things work. The only reason why things have come to a head now is because the Western hemisphere is declining.
The bigger picture is that Europe as a whole is resource poor. And tech and talent is catching up everywhere around the world. The future looks grim.
@Sam-jy5tj , you wouldn't like it if you truly understand why the financial centre in London is world leading. But it will also be declining for the same reason.
Following from Australia. Why is long term sickness high there?
A lot of it is suggested to be stress and mental health based, I believe there was a fairly recent study carried out on specifically the large numbers of younger people (Millenial, Gen Z) out of work due to long term sickness. It's really rough here in the UK in terms of living costs, food prices and housing costs are obscene and wages are really struggling to match these in real time and the spiral of wage growth from the larger employers is a plaster on a lost limb at this point, and in some ways are only perpetuating government inaction. Naturally, this has a really negative impact on peoples incentive to contribute to a workforce, we have so many people working incredibly hard that are still struggling financially and that can be super demoralising.
Welfare is given out in the UK like Smarties
@@garyb455 Don't agree with this. Benefit fraud is exceptionally low here, and we literally had someone attempt suicide in a job centre recently due to the hoops they had to jump just to receive benefits they were fully entitled to. The support universal credit and other benefits provide are also commonly really inadequate and still leave a lot of people who are in work struggling. I feel like it's unsympathetic to bundle it under people taking advantage because in the grand scheme it's vanishingly rare, most people here that are able to want to work, but face the prospect of poverty even when they do
@@garyb455You're lying.
In short knock on effects:
1. Austerity pushed enourmous (I'm talking millions) of people into poverty and food insecurity. It's so bad that we're seeing the rise of diseases that we thought disappeared in the Victorian era, like scurvy. Then you have large numbers of people that have become a mental wreck because of this.
2. Defunding the NHS impacts ability to treat people, which impacts waiting lists, which impacts those people's health.
3. The pandemic was one of the worst handled in the world, by the numbers (death toll per head was insanely high relative to peers), couple the aftermath of that with an NHS already on its knees and waiting lists (and therefore death and illness from lack of treatment) have exploded.
4. Aging population impacted by all the above, takes older working age people out of the workforce earlier than should otherwise be.
In short, policy over a long period of time has basically created this situation. Overly simplistic description I heard but sums it up nicely: "if you have the longest NHS waiting lists in history, then it's not rocket science why large numbers of people are off work sick."
Made sense
7:14 yes, imigration is just a millstone if your gdp per head just keeps going down.
You completely overlook the effect English and even European culture has on the economy compared to American culture. We live in EU and the UK in a risk-averse culture where real venture capital is extremely scarce.
If I could print as much money as I wanted, with no international consequences on my currency, I'd also be booming.
Way to not pay attention to literally anything mentioned in the video
"No consequences" lol. Not quite that simple
High tax, high regulation, anti-business and anti-profit culture. And we wonder why our economy stagnates.
Great Work! Keep it up.
Do people in the UK pay property taxes or increasing insurance costs for everything? In the US, many people borrow expecting to be bailed out and the federal reserve is more than happy to paper over losses.
We pay council tax and VAT on everything. Every bill has doubled and trebled since 2021. Only the minimum wage has increased whilst the middle earners have now been caught up.
It's madness.
@@kinggeoffrey3801 is council tax simikar to property tax here? Property tax is leveled against an assessed value of one's house and is all over the map (no pun intended) the same house can have a $5000 annual bill or $100,000 annual bill depending on city and state...
@@thorstenroberts4726 Council Tax was brought in by Thatcher in 91.
It has a band system from A to H. H being the most expensive. So normally the bigger the house, higher the Council tax. The tax allegedly pays for the bins, grass cutting, roads, lights and services like police, firemen.
Most councils are bankrupt due to government cuts and fraud. All the big wigs at the council and government have been stealing our money for their pensions.
Huge increases are expected. It's a national disgrace. More people are fighting back now as people can't afford it anymore. I pay 3k a year, so around £250 a month.
Even with property taxes considered tax burdens in the UK and essentially all of EU are comparable if not higher than the US
$5000 or $100,000 for the same house? While there can be alot of variance, I don't think that much. Generally speaking Property taxes are based on the value of the property. The average rate in the US is something like 1.1%. New Jersey has the highest rates around 2.3%.
1) the US economy is booming because of massive deficit spending to fend off inevitable decline [not saying its a bad thing] $3 TRILLION in 3 years
2) The US economy never transitioned to a peacetime economy after WW2, so with 2 big wars going on the US economy is booming, it relies on making 6om6s
3) They have no quality of life, they work 1,892 hours per year V 1,484 hours in France
4) Personal debt-based consumer spending in the US is simply insane - average consumer household debt in 2023 is $103,358. EDIT - see below
For some reason the U5A seems to include mortgage debt in the "consumer debt" - the UK Govt would call this "personal debt". Consumer debt being the debt taken on to buy consumer items like phones, clothes and cars.
The UK personal household debt is $82,800 V $103,358 in the USA
Yes, good points the contrast in debt is a significant factor, mentioned in later half of video
@@labcat647 Dude - US Govt statistics. Its not difficult to comment outside. 36 hours working is the AVERAGE of al jobs including part time - just stop. You are making a fool of yourself.
@@labcat647 Household CONSUMER debt is basically credit card debt of one form or another.
@@labcat647 consumer debt does not include mortguage
Barry, let`s look at how your economy is doing without colonialism and robbing other nations. Your fading island with crumbling infrastructure has nothing to offer except for banking. of the western countries you are the least productive for 15 years and have no product of your own. no industry, no technology, no valuable science, nothing that the world needs. thanks to banking, which doesn't have much time left and hello good old Victorian era of poverty and hopelessness.
I am planning to move to the uk to pursue msc finance and ofc try to find a job thereon. Is it a wise decision for sept 2024 intake.
I'll be doing it from KCL or Manchester uni.
Any opinion is welcome🍁
Go to Ireland, they give 2 years work visa to find job. And within 5 years you get citizenship. Don't waste your money in England, London, Scotland, Glasgow etc.
Go to Dublin, Ireland.
@@Priyankafoody but I've applied to uk universities only.
And i actually received an offer letter from king's college london for msc banking and finance. Sept 2024 intake. At the same time i am a fresher and don't have any work experience.
Please stay in India.
Why are you trying to steal our jobs?
@@BlueSkiesAbove39 May I know the reason??
When US is actually Overheating rather than Booming. Booming implies Economic Growth and Job Growth.. We actually have been having steady rounds of layoffs for last year.. or maybe two years. But this video is pretty fair
Brexit maybe, but we're not allowed to talk about that.
The UK is Europe.
If you are referring to the EU, you are also wrong.
@@chrimbus71
@@chrimbus71doesn't undermine the fact that the UK has been doing worse after Brexit. Both points aren't mutually exclusive
Can you elaborate on that.@@chrimbus71
@@chrimbus71you’re proving his point by getting indignant about it lmao
@@chrimbus71Brexit is essentially Britain imposing economic sanction on itself and proactively deny its own citizens the freedom of movement within Europe... The double wamy to any country economy.
Maybe America is just better. You don't need to beat the US just continue to thrive and develop. America is number 1, no shame on being number 5
CA at nearly half the population have a higher gdp then uk and it growth is still positive as well. a tthe rate the uk is going, texas and ny might just pass the uk as well within the decade
U.K government stop letting banks impose variable mortgage rates and start giving people fixed rates.
US is energy self-sufficient, a net exporter of energy in fact, and is not encumbered with chronic socialism in government.
Not sure how you can get through that whole analysis without mentioning exchange rates, or the comparison with Europe. The Dollar is a massive factor in America's good health, and conversely, the relative weakness of most European countries.
There's an argument that the point at which the Government reversed its fiscal stimulus plans was the point at which they handed the economy over to the banks and pension funds (who funnily enough are more interested in preserving their profits than stimulating other businesses). Truss at least recognised that inflation was coming, and though she botched the intervention her successors "more prudent" approach has gone on to do more damage than she did. The difference being that the damage was done over a much longer period of time - which doesn't get the same hysterical headlines.
We currently have no-one in parliament (in any party) with a clear plan for economic growth.
That’s why Americans panic when hear any new BRICS members and realising that in next 20 years they will loose it.
Can labour do something similar to the inflation reduction act, do we have the financial space?
Of course they can. The problem is that most people don’t spot the US’s massive debt mountain. 33trillion last time I looked. They just said they are selling of a record amount of 5 years of bonds.
The problem is that extra borrowing need paying back so you are just deferring tax rises.
@@davideyres955government spending doesnt work like a households balance sheet.
Yes, but the risk for Labour is that they use policies that are shown to work elsewhere, but in this country the media totally undermines them.
Quite simply, the fundamental Tory ideas of the last forty years are just not working. We have had more than enough time to show that clearly, but until the media is willing to be les hostile, then the Tories may well get back into power in five years' time.
They pull money out of thin air all the time when a "crisis" happens like Ukraine or the pandemic. It's a question of how much the politicians and power holders want it, what the economists say, what the city/markets say and what the media says.
There's a lot of cash grabbing and looking out only for their own interests going on at the top. Not a lot of looking out for the greater good of the country.
@@davideyres955it depends. Borrowing to to create investment increases the productive capacity of the economy, which over time increases growth and reduces debt. Considering that the UK only has a debt to gdp ratio of 90%, it Stands that the UK could borrow more for productive activities such as infrastructure, energy, housing and healthcare. It’s around the 120% mark where it gets dicey though no one really knows
I think one thing that needs to be considered is Europe's reliance upon Russia for trade. That was a catastrophic error for everyone in Europe. The drop in trade with Russia and Ukraine has been to the benefit of the USA, who has replaced Russia and Ukraine as exporter of both food and energy. Couple this with the massive spending by the Biden administration to transform the USA into a high-tech manufacturer, and you've got a booming economy.
For the answer to the question - just look at the recent politicians and in fact the only potential alternative which cannot improve the UK with their same ideas.
Most Americans actually dont feel like the economy is booming. Credit card debt is really high, savings being depleted, mental health down, people failing to pay back car loans, homes are unaffordable, quality of products keeps getting worst.
You only have to spend a few moment's online to realize people of all ages think this country is going down hill for various reasons.
its far better than here in uk tho, isnt it? and europe not hit by doubled energy costs. plus we have import/ export costs thanks to brexit.
Nah the USA is ‘booming’. The UK just needs to run up the debt alot more then we’ve fixed the problem 😂
You would think Americans would look after the homeless vets at least
Don't forget the layoffs that have been rolling from industry to industry. The place I work at was lucky enough to only implement a 'hiring freeze' when some critical departments were below their minimum staffing to cover every shift.
You have to remember that those people on Reddit (blech) only represent a minutiae of actual average citizen. Thank god 😂
On my new channel, I looked at whether US economy will still be booming in November election. Will debt cripple US before election,? It looks much better than 12 months ago, but long-term uncertain. ruclips.net/video/5sEpMITb60o/видео.html
Scotland Wales and England are always welcome to join the EU ❤😂🎉 to improve economy 😊😅😮
Cool
@@matpkYes
1st British Make India Poor Now India make Britain Poor...😂😂😂..
You made a big mistake in the title: The correct version is "UK economy in recession, US economy also in recession but using fake money and forged statistics to make it seem otherwise"
Hope the money printing machine doesn't break down. How does it keep from burning up?
Some people in government might actually think that declining life expectancy is good. You don't need to pay a pension to people that die right after retirement now do you?
These are just speculations at the end of the day, hindsight is always 20/20
My own personal opinion is the American entrepreneurial culture is lacking in UK and Europe in general
American companies are always striving for growth , whether good or bad is matter of opinion
But one thing that is certain that this culture will continue and despite all the social issues facing USA it will continue to grow
I agree we’re no where near as enterprising as the Americans
Current growth in the US is almost all from ballooning government spending, their deficit is almost 50% this year. It's totally unsustainable.
No, actually businesses, industry, resource extraction, big tech and services are feeling great. I actually dread to imagine what the british will take the growth of their economy from in the future due to lack of industries, start.ups, resources and poor infrastructure. that's who you are actually unsustainable. even your banking is crumbling
I think the US is leveraging its position as the world's no. 1 currency. People want dollars so it feels it can borrow as much as it wants. Some parallels with the yen and the huge public debt Japan has as a consequence. They feel that as long as they can pay the interest, they will have no difficulty refinancing the debt. Other countries don't have that luxury. If/when the dollar falls from grace, the US will be hamstrung by big debt repayments, not unlike Japan now.
IIRC, Trump paid for his tax reduction budget with borrowing too. It created an increase in GDP for the US but the amount borrowed ($1 trillion per year) was more than the rise in GDP ($0.7 trillion per year). So it was a window dressing exercise arguably. (Tbh, I can't remember where I got those figures, I just remember reading that at the time, so take with a pinch of salt). The basic point is the same though - the US is using its position to borrow, which is a risky strategy and likely will create problems down the line.
@@user-rk3vw3pk4w the gov slashed bank tax to 2% just before inflation hit. the banks here are making a fortune. imagine only paying 2% tax when they were the ones who caused the mess in the first place?! madness.
Everything you just said is wrong
@@Henry-hm8tu prove me I am wrong otherwise your words don’t have any worth.
Low wages in the UK, unregulated labor market, Low taxes on the rich.
Energy costs a fracction of uk and benefits of fracking
Because one invested in their economy and the other didn't. Funny that Conservatives always claim to understand the economy and money, yet when they get into government they completely forget the basics of invetsment.
Was the same under Thatcher
they only care about their bank balances and their donors. conservatives always leave the country on its knees then blame whoever comes in next.
@@stephanguitar9778 so true.
The declining US life expectancy is shocking - I had no idea
I've just subbed - thanks for your insightful and unbiased videos 👌
Obesity being the main culprit
@@christinaedwards5084
"Number of deaths for leading causes of death
Heart disease: 695,547
Cancer: 605,213
COVID-19: 416,893
Accidents (unintentional injuries): 224,935
Stroke (cerebrovascular diseases): 162,890
Chronic lower respiratory diseases: 142,342
Alzheimer’s disease: 119,399
Diabetes: 103,294
Chronic liver disease and cirrhosis : 56,585
Nephritis, nephrotic syndrome, and nephrosis: 54,358"
Source: CDC - Mortality in the United States, 2021, data table for figure 4
Covid deaths spike, it has recovered since but not to pre-pandemic levels
Appalling health system there. We must protect ours from those who wish to destroy it.
mostly anti-vaxxers during covid
Things are BOOMING in the U.S. All sorts of companies are getting laid off at the moment.
Excellent assessment. Thanks for always making insightful videos.
US just has the world reserve currency going on for it. Other than that we're making many of the same stupid mistakes.
Strange to compare a 265m fully self supporting country with a 65m country completely depending on imports to survive.
Apples and oranges, but on par for thrbudea that the UK somehow is in the same league as the US
The UK likes to pretend they are still rich. They can't seem to comprehend that their riches were from colonizing originally, and also industrialization, which now both advantages are gone.
I think the same. The USA is an outlier on the world stage and comparisons with any other economy are pointless as well as deceptive.
@@pritapp788why is it an outlier?
335 million country
Honestly you should compare the whole EU to the USA.
446 million to 335 million
And the USA is still slightly larger with more natural resources, but the EU more population.
@@mattia8327 not sure why you make that reply to me.
My comment was about how silly it is to compare the UK with the USa, so I don't see any link with your post about EU/USA comparison related to my post?
The US is experiencing a recession currently. I live in Los Angeles. Layoffs are rampant. Inflation is out of control.
i wonder where the US have been getting all the materials for those new shiny batteries
pobably China or Africa.
If you have expensive royal family expenses, 80% of student loans don't get repaid, illegal migration, a significant number of Muslim migrants not working, free NHS, and costly projects like HS2, with no factories and other major companies operating in the UK, most things are imported from other countries.
The simple answer is UK has no workers. Try getting a plumber or a roofer. It’s next to impossible.
Absolutely.
I’m guessing your “ down south “
Plenty tradesmen’s up north
Though uk exports to the eu is at a high level
Look up the concept of "inflation"
@@ab-ym3bf yes there nothing stoping people to go back to market rather than super market.
This is just mild our Uk economy is boosting for our inflation is halve from 11.1% to 4.7% and our £ vs usd is still Strong. Our economy is growing according to our Uk economists. In a week or 2 the inflation will go down again
Your best video yet I feel, and you managed not to mention or blame Brexit!
It was mentioned, as it should be.
Which if true, would diminish the quality of this videos analysis.
Is the us economy actually booming rn? Doesn't feel like it
Conservative huh😂😂,
U.S. inflation, gas prices and food inflation. Great if stock market is doing well but Maccy ds cost $18 for a big mac combo! 34 Trillion debt!
We are all missing one important fact: why we are in this situation?
financial greed. Solutions just to save the day.
Banks were selling money with cheap interest rate, government has been promoting property as a financial investment tool, while the privileged could buy more property to rent and generate a passive income, the properties were also advertised for foreign investors which increased the competition to higher prices.
Now you got one man with one kid owning 27 flats (my landlord!) and the rest of us young people can’t even dream of getting onto the property ladder. Amazing what you invent to survive on also destroys you
We now buy our energy from America at 4 times the price, a factor???
we buy most of it from france actually. electric anyway. we are hugely subsidising the french nationally owned energy company. we buy gas from norway and do the same. its been so great since the tories sold off all our energy eh? /s
Look at the US debt levels, that is how they charge ahead with borrowing which does not seem to bother them.
USA prints The global reserve currency
@@hasinabegum1038 that has to be challenged
looking at teh raw debt number, it high but lookin at it form a debt to gdp ratio, it actually still low, not high at all
@@SGN30good luck with that
The UK needs to re-industrialise, but the government, for some reasons, doesn't want to do it. Their bet is on the service sector but, outside of London, it doesn't really help...
Because our whole de-carbonisation strategy (and by extension Europe) relied on de-industrialising and letting other LEDCs "use the carbon budget" to provide cheaper goods to developed countries.
Britain re-industrialising would mean that we would have to sacrifice meeting our binding climate targets.
All the big innovation in us?
Yeah, easy for me. I want to buy US goods (from hardware like Starlink, to software Microsoft, to their cars like Ford)
I almost want nothing the UK sells (except maybe Rolls-Royce plane engines :P)
In fact, I buy many things from many different countries that potentially lead back to Europe (eg Samsung phone, where the tech to make the screen rotate, if I remember correctly, comes from Germany)
I say all that to say when there is a more one-on-one comparison between exports, most of the stuff I buy I've noticed rarely comes completely from the EU)
Of what use is the US economic growth if so many people don't see it because they're barely surviving despite having multiple jobs and will vote accordingly?
So many people see it too. Those that actually make good and responsible decisions intheir lives and cease the different opportunities that present to them.
Cheaper gas and oil ?
YOU CAN'T BELIEVE THE US FIGURES!
It’s incredible how we are worse in every economic lever. Lower interest rates are lower growth
The US is booming?? There is literally a debt crisis right now and lay offs are abound...I can tell this dude never even been to America 🙃
What is a "debt crisis?" Layoffs have always been happening in the US. Do u live under a rock? Us unemployment rate is at record lows.
@@Dave05J a Debt crisis is a situation in which a government loses the ability of paying back its governmental debt. Also do YOU live under a rock?? Inflation has been sky high since Biden's presidency and more ppl are losing their jobs and hourly pay 🤦🏾♂️
@@Dave05J a Debt crisis is a situation in which a government loses the ability of paying back its governmental debt. Also . Inflation is sky high and we are literally in World war 3 right now. Stop acting like this country is doing so well under Biden when it's not.
@@Dave05J inflation is sky high right now and we are practically under a recession. Stop acting like this country is doing so well under Biden when it's not.
@@Dave05J Debt crisis is a situation in which a government loses the ability of paying back its governmental debt. Lay offs are at its worst right now and inflation is sky high. We are practically living under World War 3 & a recession at the same damn time and you are too oblivious to realize this
I’ve been here for 5 years, and I’ve had 6 accountants. All I can say is many people here are absolutely horrible at their jobs haha, they charge 10x what Canadians did, take 10x longer and do a much worse job.
Truss was stitched up
It ain't booming for ordinary (non-)working Americans. Anyone who's been there, not just to Disney World on holiday, the levels of poverty is remarkable.
A more meaningful graph would be GDP for a median income worker. With wealth disparity on steroids, it completely skews the intended meaning of the effects of GDP on the average person
There is more poverty in the UK than in the US. The issue is that the poor here can’t rely on the nanny state as much as they can in the UK.
The poverty rate in 10% higher in the UKthani US! Get out of your american bashing tiktoknews
Are the US figures true? Why have we had negative revisions to Non Farm Payroll and other indicators, these revisions don't make the mainstream news in the US.
100%
Yes, the US is very open about these numbers. Unlike places like china
If the politicians were not so corrupt, maybe we would not be in a mess