The Real Reason Britain is Broke - A Doom Loop of Debt
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- Опубликовано: 31 май 2024
- A look at why debt is a problem for UK, but also how the current situation could be changed.
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If you're interested in effects of QE and its distortionary effects on economy, housing and interest rates, this recent video might be of interest. ruclips.net/video/goA9kkaDfTE/видео.html The scale of QE (Quantitative Easing) and Quantitative Tightening is quite significant.
Your take on the impact from a socialist big state control perspective.
@@graemebarriball303I'm starting to think this is the correct approach.
@@andrewwotherspoona5722 you think socialism is the route to prosperity?
@graemebarriball303 Socialism yes, communism, No. Socialism vs pure Capitalism most definitely. The US is rich but the vast majority of the population is poor. Extract just the richest 10 people living in the US and transport them to Europe. You'd have a GDP per capita higher than US and the US would be pretty poor!
@@andrewwotherspoona5722 The UK is already socialist and it isn’t working. All that happens in a socialist society is everyone gets poor except the leaders and opportunity and incentive to better yourself through personal effort is removed.
That’s precisely what we see in the UK. 1 in six of the work force can’t be bothered to work because they have zero ambition and can get all that they need from the state. Taxes on the rest of us have to be higher to support their idleness.
Socialism has never worked in any society in the world, look to Venezuela. People trumpet the Nordic’s without understanding they are tiny populations with enormousness natural resources per capita, it is the exploitation of those resources that makes their society rich. Here in the UK our easily extractible resources are limited, made even harder by endless regulation. The only means of making the UK population wealthy is for it to work. As we see the population, especially those employed in the public sector and the millions on benefits, aren’t keen on work.
That’s the problem with socialism if someone else is working to pay your bills why work? Eventually everyone takes the same view, so no one works. The UK is accelerating down that road. I’m winding down my business to join the economically inactive. I used to employ 5 full time well paid staff, as a result of endless changes to employment rights, employment red tape combined with higher taxes I can’t be bothered with it, so as they left I have not replaced them. I now use a few self employed people to complete the last of the projects, then I shall put my feet up and watch this socialist experiment from far off shores.
It's fascinating the Tories always say they are the party of business yet as soon as they get in government they forget the basics of business which is investment.
Unless they invest in themselves 😂😂
The Tories only know how to extract public sector wealth for their own businesses offshore
Investment means you will generate income and have to pay taxes. No one wants that.
Most government policy seems to be designed to contract the economy. Net zero is a good example which is directly responsible for increasing energy costs causing the West to deindustrialise. Germany is now in big trouble as is most of the EU and the UK. The US is doing well out of it and no doubt a relief to those who support the EU.
@@stumac869 the increased fuel cost is due to the Ukraine war, Net Zero would have stopped the increase in fuel prices 🤦♂️ Industry does not require fossil fuels. The US is doing well because of the Green new deal the EU is not because it didn't do a green new deal, it is also like investments gain returns and right now. Investing in green technology is a money maker and is cheaper energy, fossil fuels are more expensive per KWH than renewables.
Politicians and economists spend a lot of time thinking about tinkering with the economy. The sad truth is that a country must produce goods and services that people want, in order to grow and succeed. Unfortunately, I can't offhand think of any "stuff" I would like to buy from the UK...
Buy some bad debt?
Exactly. There's some niche high end manufacturing but nothing mass produced that can drive growth. Think Toyota.
That's what 47 years of EU membership did for us
@@DewtbArenatsiz really? do you know what it was like in the 70s? Can you elaborate on the gains of leaving the single market?
@@lorrainemoynehan6791 ordinary people could afford a house in the seventies. And we bought far more from the EU than they bought from us. Ergo there's no benefit from membership
So many people are left behind with the UK stuttering economy. It’s a hand to mouth existence for so many and the stress this creates makes people ill. The future is a dark place. I pity the young and those on low wages.
Low productivity is the problem. Jobs in the UK pay little because of that.
@@zuzanazuscinova5209why worry about productivity when we have an endless supply of cheap imported labour?
@@fanfeck2844it's not just about cheap labor
@@zuzanazuscinova5209 why else wouldn’t they invest to improve it then? The only reason to invest in tech is to save on wages. No point buying a flash automatic car wash for hundreds of thousands, if you can hire five guys for a lot less
Those on low wages is just about anyone under 75k because the UKs pay rates generally are low (as are pensions) compared to other western countries.
Can't believe it's taken 15 years to figure out that cutting public spending and investment reduces growth.
This is the same country that birthed people like Adam Smith, Shakespeare and Isaac Newton.
And John Meynard Keynes
Expansionary Austerity is a prime example of why you really don't need to be a genius to be an economics professor at Harvard.
@@alt_zaq1_esc This is what hits the hardest! One of the few economists who had an economic theory that was really proven to work and should be a british hero. And yet they've done nothing but ignore the Keynesian economics and cling to austerity like a religion.
It also birthed Tony Blair, Boris Johnson and Matt Hancock....
The irony is that today's conservatives worship Adam Smith and Keynesianism is written off as "waa communism". Meanwhile centrists, who are supposedly the sensible ones have no spine.
When you spend your wealth supporting another country's manufacturers, dont be surprised that you have less wealth over time. I reopened an industrial complex in Hants that had been shut by its French owners. Eighteen years later it is still in business and pumps millions into the local economy. I had a streamlined business model that kept tight control on costs and was able to react very quickly to customer demands through short management lines. My successor has invested heavily and grown the business but is hampered by the shortage of affordable engineering staff. At one point he had 12 apprentices but they were poached for contract work as soon as they qualified.
The support infrastructure for engineering businesses simply doesnt exist anymore.
Meanwhile, we subsidise China's economic miracle.
Its also worth saying that public spending per head is a poor metric, when you import an extra 700,000 unskilled people per year
Interesting to hear. I wonder when the support for engineering and manufacturing was withdrawn? It all figures. 😢 the powers that be are hedging on Britain's demise. That would "makes sense" of the madness. Trying to think from a Wealth Destroyer's point of view here.
Actually, immigration helps growth. And a lot of those unskilled workers are actually skilled, but the UK does not recognise their qualifications. And as the UK is unable to get workers for the farms, truck drivers and low skilled jobs from the EU, those immigrants can fill the space.
But in the last 10 years, the UKs population has only gown slightly.
In 2024, the U.K.'s population stands at approximately 67,961,439 people, representing a 0.33% increase from the previous year.
Rewinding to 2014, the population was around 64,773,504, indicating a gradual upward trend.
The highest recorded annual increase during this period occurred in 1962, with a growth rate of 0.85%.
Conversely, in 2021, there was a slight decrease of -0.08%
@@BatMan-oe2gh UK population was over 10 million less in 2000. You can see the change. The cities are swamped with recent arrivals
@@itssteve1923 10 million over 24 years? That is 416,000 per year.
Since the year 2000, the United Kingdom has witnessed significant immigration. Approximately 5.9 million people arrived from overseas during this period, while around 7 million individuals left the country. Interestingly, over half of those arriving from abroad (52%) chose to settle in London, the South East, and the East of England. The foreign-born population in the UK has grown from about 5.3 million in 2004 to over 9.5 million in 2021.
But add in the birth rate to the mix as well. At least 800,000 a year.
And the UK population in 2000 was 58,850,043, in 2024 it is 67,961,439, so less than 10 million. If your population does not grow, the economy suffers badly.
If the population carries on growing we all die , what a fantastic economic model that is all fantasy and relies on belief .@@BatMan-oe2gh
They aren’t bothered about debt as money printing is the way forward. Inflation is just another consequence of this and is passed on to us without legislation.
i know. print money and make house prices go up ?
problem totally resolved.
Print money = inflation.
print money = theft @@ybkseraph
Most politicians would disagree 😅@ybkseraph
You are a good Prime Minster candidate.
interest rate is the cost or risk measure of finance. Fiat finance has a high risk once we can not pay off the debt. here we are.
An idea for the UK: If they're out of funding for the legal system, maybe try not arresting people for "posting a meme that caused someone anxiety" or arresting artists over fictional drawings as well as not buying millions of CCTV cameras to put at every street corner of London so the state can creepily watch everyone you wherever they go. Just a thought.
So don’t arrest people and sell of the spy cameras. Lol. Me thinks there’s a little bit more to it than that. But thanks Gen z.
Nah, the police love to waste tons of money.
I ve just come back to the UK from teaching in the middle east. The curriculum focused on healthy living, nutrition, exercise and mental health. Cancer rates there are much lower. Back in the UK, junk foods, fizzy drinks and booze are national past times. Huge NHS spending ? Wonder why?
Simple: Tories do not send their children to crumbling state schools, they do not use the NHS, and they do not use public transport. Ask Sunak how his family made millions form shares in companies that given UK government contracts....
Hamdullilah. Tenants Special Brew haram in Arabiyya Saoudiyya. I met a nurse once who had worked in the ME. She used the expression "drunk as an Arab".
I m sure that some are boozers- that s the world over....@@mikerodent3164
ahh the ME, i know this massive country. just like that country called Europe. were they limey friendly?
Well Arabs have suffered enough due to junk food and not exercising so... good to hear that they are changing. There was a report in the Guardian today about UPFs - Ultra Processed Foods. They are designed and marketed in a way which makes them attractive to people with less money
Let's be honest, things are going to get much worse and we're going to have to start again from scratch almost. Couldn't agree more about the Tories.
The UK's politicians for the last 20 years are generally products of a declining education system that started around 30 years ago. The level of mismanagement and money grabbing has been truly breath taking. For example, when north sea oil and gas came on line back in the seventies, the revenue was going to set the UK up but it did not, it was frittered away with little if anything invested. Contrast this with Norway, who also accessed their north sea gas and oil reserves, then invested the revenue and now have a large sovereign wealth fund of around US$ 1.548 trillion and was set up in 1990. This is what good, responsible governance looks like.
The high street is the way it is, is because, they have become inconvenient places to shop, with high parking costs, roadside parking and free parking taken away.
Rent and business rates are ridiculously high and quite often prohibitive.
It's simple really if the government want high street shopping to thrive then they can fix it, but clearly, they don't, god knows why.
Its become local Government had there budgets cut by 60% in real terms and parking is one of the few revenue streams they have control of so they need to milk for all it's worth.
online shopping is the only pressure relief for retail. Local retail will be depressed going forward and local economies done.
It's more than that, the black market has filled the void left behind by the collapse in retail. Barbers, beauty salons, vape shops, dog groomers, coffee shops etc. How much tax are these outlets paying?
We are F to the K'd.
Have been since 2008.
This is really good analysis--makes me wish I studied Economics instead of Accounting 😂. You should do this for other countries as well. Subscribed 👍🏾.
@AdvocateOfJamaica, This is not "economics" it's junk economics. And it's all bullsh#it about America. The place is a disaster. Britain's problem is being dictated to by US/Globalism and it's economy being 70 per cent "service" and manufacturing hardly anything. Great for the Oligarchs only. All the rest is nonsense. Money printing and increasing debt and poverty is the future. Same with Europe for the same reason. Run by incompetent lunatics who see war as the only way out. All the money being sucked into the hands of fewer and fewer maniacs.
I'm still amazed that Osborne isn't getting a complete kicking by every competent economist. He was told, time and time again, *not* to deflate public sector spending in such a way that would cripple tax revenues, halt investment, and under no circumstances, to cause growth to stall. Needless to say, he didn't listen.
The idea that continuing to cut spending is a good idea when the economy has stalled is for the birds. Right now, if the private sector hasn't the means or incentive to invest, the *only* game in town is for the government to stimulate growth, and the most lucrative pot is wealth tied up elsewhere, in pension funds, offshore accounts, and property. Without physically taking money away from people this is going to need some real out of the box thinking. None of which is not going to be popular, but there really aren't too many other options wthout stoking inflation or paying a premium on debt.
I think you and so many others have completely mis-read the economy. The decline of the Britain has more to do with a loss of her empire, and decades of corruption and incompetence. The stoking of a debt spiral borrowing from future wealth rather than putting a viable long term plan in place for sustainable development. A failure to invest in society. An imbalance of wealth throughout the country. Take a look at Jamaica from 1990 until 2013 to see the future of your country. Doesn’t look nice at all.
The tories have other agendas that are not for our economic benefit, dismantling the state is top and austerity provides the perfect excuse for selling off the remains of our state assets/services, For example having a functioning NHS is of no benefit to them as they can afford private healthcare, but the financial rewards to them of a 2 tier American style system will be huge. I'm not sure if it was entirely planned but worked incredibly well for the tories - austerity also paved the way for Brexit (research from the university of warwick supports this). Brexit has been a boon to the tories - splitting the opposition and absolutely ensuring they were in power during Covid - which was an incredible financial goldmine plundering for the tories and their friends.
Southern Ireland slashed governmemt spending far more aggressively than we did and are now in a much stronger position. Appreciate there are tax reasons why their economy is performing well (US companies based to take advantage) which may eventually fade away but demonstrates that government spending fuelled by debt is not a very good solution to creating sustained growth. It'll be a blip at best.
That's the worst thing that a government can do, it is a recipe for hyper inflation and a bankrupt government AKA Argentina. Straight out of socialist shit are your ideas
Thanks...i think that way too....he done so much damage. In the last year in office i could not believe some journalists hailing him as one of Britain's best ever Chancellor of the Exchequer????
We've sold most of our assets and squandered that money instead of investing it but we still have some bits left to raise capital for investment. How about selling the Falklands, Channel Isles, Gib and, if that goes well, let's get rid of Scotland to the Saudis, the Scots want to leave anyway. Failing that, a wealth tax on all the ex PMs and civil servants who have got us into this mess should raise a trillion or two.
But you need to invest that money into something that will generate future revenues. What industry does the UK have that is income producing? You need to export something en masse. Think Japanese cars and Korean TVs.
@@zuzanazuscinova5209 Or invest in reducing our imports by creating renewable energy sources. I understand that Norway used revenues from North Sea oil to create hydro-electric power sources. We used our oil to reduce taxes.
@@jonp3216 Very true
I left in 2007. I've often wondered whether I was right. I especially miss Cornwall.
you were wrong.....as am i
@@jpandyaraja You may be right, that we were wrong. We will never know because we can't live 2 parallel lives, 2 choices, and compare.
You were right to leave and you can always visit but keep your eye on the economic and political news.
I think the UK is in for a very tough time 😢
Perfectly timed. Go anywhere nice? Not hard to beat this s hole haha
I'm a cornish lad, I left in 2010, I miss it terribly, but now I cant see a way back.......
Points out that in WW2 we had 200% to gdp …however that situation was completely different to today -for as soon as the war was over debt to gdp plummeted as the gov didn’t have to spend as much. That is NOT the situation today…we cannot just simply stop ‘the spending’.
The situation was very different back then as employing women wasn't as common so there was lot of headroom for growth. Industry would benefit massively from automation, robotics, computers, development of new materials. A 1945 UK had still much hidden potential for growth, which is not the case today. From economic standpoint Brexit was a major error.
We had economic growth after the war because we had a huge manufacturing base. Consumerism and applauding ourselves because our houses prices have gone up will not lead to economic growth. This country really is stuffed.
Congratulations on a well-put-together and simple and clear explanation of the current and future problems of the UK economy you mention "Escape Velocity" towards the end of the video, one term that is consistently missing from these types of video is the importance of the "velocity of money" and how 97% of the pound is created from debt and the economic sectors back this debt, The collapse of the Velocity of the pound since the mid 90's is a major factor for the economic decline of the UK, we have more money/debt (same thing) in history but for one simple fact that each pound created is NOT moving through enough people hands ie "velocity". it would be nice if the videos like these could include that by simply changing the Velocity up a few points would have a dramatically positive effect on the UK's GDP. The next video could explain how to do this.
tax the wealthy heavily and seize assets f nobility
a simple way to increase velocity would have more children per household and more high paying jobs. Bringing in or allowing low wage and under table economies is dismal.
Austerity reduces the flow of money, turnover, margins, earnings, wages, and spending, it is bad for all sectors and layers of the economy.
Increasing the flow of money does not necessarily mean you create inflation. The trick is to invest in projects that create opportunities, and that will increase the value of your territory/economy, and with that boosts your currency - which reduces inflation.
Now you have: increased the intrinsic and economic value of your nation, increased the throughput of your economy, increased the amount of money in the hands of people and businesses, reduced the increase of your deficit, improved your credit rating, and gained a competitive edge on the global market.
Even if you only manage to achieve these things to the amount of half a percent of GDP, that is exactly the difference between an economy that is growing, and an economy that is in a death spiral.
The only problem is that this approach does not exclusively put absoolutely all the money in the pockets of the very richest, and that is of course unacceptable to them.
Government picking winners. Has a great track record. And your logic, government spending to increase consumption, ‘multiplier effect’, why don't you massively increase government spending and deficit? It will all just pay for itself then? Donkey economics.
@@WhataDubHead You sounds like all the other Keynesian naysayers who could not fix anything either, yet insist that their skewed and unproven model is the only way.
The problem is our governments are controlled by the bankers who basically want everything for themselves
Austerity frees up resources wasted on government pet projects and waste.
All government spending comes from taxing and borrowing from the private sector taking money from companies that could otherwise invest or pay wages, reducing growth and putting in the hands of incompetent bureaucrats.
Europe has gone fully Keynesian yet has the worst growth in the world.
@@crown9413 Corporate taxes in the US are all of 3,9 percent of tax revenue. 70% is individual taxes, sales tax and property taxes. So no, not all government spending comes from borrowed money, and they would not invest that in wage growth. Go gaslight ur mom.
And all the time, we letting people who haven't got a pot to piss in, in
Thank you for your insights. I always said Government is useless in achieving economic growth has no clue or idea on achieving economic growth or escape velocity in economics.
Excellent report, thanks.
How much of UK GDP is composed of the exorbitant 20% sales tax and when do you think it will increase to 22.5%?
Who introduced VAT and who kept putting it up? ; )
Between 1979 and 1997 the Tories totally squandered the opportunities of creating national wealth from oil via a sovereign wealth fund and progressive taxation in the dtyle of Norway. Not only did they utterly fail the future people of this country, they sold off the national assets and destroyed the housing supply simply to fund tax cuts for corporations and wealthy individuals. All that happened was that corps gave the money to shareholders who then hoarded it. No benefit to society at all. This gutted economy set the stage for the Tories in 2010. The rest is current history 😢
Were you an adult in 1979? British Steel was losing eyewatering amounts of money daily. British Leyland was making poor quality cars that were out of date by the tome they hit the garage forecourts and rusted away in 4 years. No one would buy them and productivity in the car factories was lamentable due to strikes and bad working habits eg Friday afternoon cars were rubbish. You had to wait ages to get a telephone installed and their was no choice whatsoever. The coale mines were also losing massive amounts of money following Micael Foot's award of 40% wage awards in 1974 and many old pits with hopeless productivity due to geological problems and flooding were being kept open purely due to the political strength of the NUM. This had impacts on the cost of electricity etc. Tony Benn's solution to this crisis in British induatry was the Merriden motorcycle factory wherein everyone earned the same be they designers or floor sweepers. Benn proposed outlawing any imported electronic devices such as TVs because they were cheaper and more reliable than UK built stuff.
@@auldfouter8661 Interesting that your entire response is whataboutism. You have not disputed any of the points I made which are simple factual history. The mismanagement of the economy, industries and businesses was not and never is the fault of the workers that I think you are trying to imply. The workers are not the ones with control of the means of production. In this country then, as now, it is the the capitalist class who hold power in both state and economic matters.Ir is and always was, that mismanagement that produced all of the effects you describe. I would issue with some that are merely speculation and for which no evidence has ever been produced and others are simply your opinion or that of the Daily Mail.
Yes I was and still am, an adult.
Yes. But don't come to youtube for logic, reason or gentlemanly debate@@Anmeteor9663
Destroying manufacturing by exporting it to cheap sources of production so cheap stuff was imported putting enterprises out of business with loss of jobs and low wages.
Labour sold off our gold, at a record low. That screwed us in several ways.
A problem has been building for years in the background the GDP has been propped up for years with government spending, government subsidies supporting no productive industries, enterprises and credit expansion with house hold debt, that works well at the beginning of the debt expansion cycle but once that cycle becomes mature the cost to service the leverage and debts become a negative arbitrage on growth all you are left with is a stagnating debt vacuum with no further liquidity to push to problem further down the road, this is likely to be the time and generation that has to face up to this reality the game of financial musical chairs is over.
Until the chairs are broken they'll continue. We are not in the same position at the end ww2, we are compared to global cimpetitors worse position. This massive Debt will distract governments in the wrong direction.
A rare bird which doesn't talk about " Collapsed China" but concentrating UK economy 👍👍👍
You mean you're taking pleasure from hearing about something bad happening to foreigners
Great video. Thank you.
In Denmark we have seen an increasing government budget surplus. It went from a small $613 million budget deficit in 2020 (because of the covid-19 crisis) to a surprising $8.4 billion surplus in 2021 and a just as surprising $18.4 billion surplus in 2022. The full 2023 figures have not yet been released, but is shows a $9.9 billion budget surplus in the first 3 out of 4 quarters of 2023, despite a huge increase in military spending's and billions worth of military aid for Ukraine.
Denmark has several million less freeloaders than the UK for one thing........and almost everyone is rich. Helps a bit😅
Woah that's very interesting! Is this due to Novo Nordisk paying taxes to the Danish government?
@RK-bx1by ... Not really but it do help, but higher wages in general also = more taxes for the government, not least including a 25% Vat sales tax on everything, so when Corona and Russia made the prices go up, it automatically generated more money from taxes.
But you are right, Denmark's biggest export is biotechnology and pharmaceuticals (from Novo, Lundbeck, LEO Pharma, Orifarm, ALK-Abello, Bavarian Nordic, William Cook and so forth) , then food that now has become more expensive everywhere, not to forget that the worlds 2nd largest container shipping company Maersk made their largest profit ever last year, and LEGO is always doing great.
What video is it that you mentioned at the end that goes more into detail about the housing crisis?
A mess
its not my mess and i have zero intention of helping fix it.
*deliberate
An Eton Mess.
The view of the UK from North America is that there’s a lot of bank centered wealth in London, but the country is otherwise broken, impoverished and in decline.
The tale of the man who kept a donkey for his farm. To save increase profits/reduce costs he reduced the allocation of straw for the donkey. The donkey's performance fell, so to reduce costs he fed the donkey even less. After a while the donkey died.
Damn it, this has let cat out of the bag, this was supposed to be top secret, how did you get hold of Britain's economic plan?
In post-war Britain, everybody worked.
And everybody was young…
Did they have the benefits system ?? People would rather be given fish that learn to fish
There was no Tik Tok
Participation in the work force is higher now due to more women working.
Nah, it's profligacy. Leave investment to professionals, just get out of the way of businesses, slash regulations and taxes, remove all benefits, leave this to insurance. Remove pensions except for past contractual pensions, leave the rest to personal pensions. The only regulations that we need are the ones that ban anti-competitive practices. E.g. we should ban any regulation of listed buildings. People should be able to install insulation, efficient windows and solar panels even on listed buildings. Then high energy market prices will drive investment in small scale energy production.
Tax dosnt pay for spending
GDP is a useless indicator as it takes no account of cost
Energy and intrates are being propped up and raised to protect gdp
Britain’s deficit is because money shovelled out to private sector by the tories hasn’t been taxed back
Who does the govt “borrow” from ?
It’s the govt who puts rates up and decides to hand out free money to the banks and richer entities. Raising intrates just rewards money with free money and transfers wealth from the bottom to the top even further. Banks profits have soared since rate rises
Yes, it's amazing to see those record bank profits come in after they only roughly trebled mortgage rates. I mean, if I charged colleagues a tenner for a cup of coffee I think I'd be going pretty well too 😂
This is the same with the states. The government will never realistically be able to pay it off.
Really interesting, thank you!!!
Your answer is to create more debt and ‘invest’ in green energy (which is a fraud). We should be returning to an industrial base and get rid of our fiat monetary system.
Parliament must call in the French loan. France hasn’t paid a penny on its loan since 1931 and due to interest the debt is edging a trillion.
Realistically austerity has not, and never will work. The cut back in services just shifts the problem and amplifies it. We see this now with poor education, poor health leading to poor work force standards and poor productivity. It's engrained now and there is little way to get rid. At best labour can prop it up for a little longer if they can find some productivity multipliers. To be honest something like forced labour for benefits, specifically for food production and local area upkeep may work. You could think about prescription cannabis and other illegal drugs to further reduce costs by containing the issue, reducing policing impact. Outside of this a segregate and then watch it burn may be the last option. At least some salvage could be found that way.
forced labor if keeping benefits but the way work life is organised needs to be radically changed.
They have some labour for benefits but rolled them back, if you get 2 years out work you get a month full time placement at a place for work experiance.. but companies were just exploiting this like savers tesco for free workers and hiring less staff and you would have to compete with free labour in every job if that was the case as big places cant turn down profit of free labour if they can get it.
So they now only have these work benefit schemes with charaties etc.
@@Innocenttazlet I don't agree with using it for private sector. This is just for local work. Benefits are paid by society so you can assist society if able to while claiming them.
"Forced labour for benefits" - this implies people are sitting unnecessarily idyl when the truth is the business class demand an oversupply of labour to keep wages low and the housing bubble propped up. UK unemployment benefits are a joke. Simply cut off the supply of foreign labour which was never needed in the first place. If there is work which needs doing in the local area, pay people to do it
@@Innocenttazlet People pay tax and NI for their benefits. It's a total myth that there is just this huge class of people getting something for nothing. Big business wants an oversupply of labour and it wants ever more consumers. The financial class wants ever upward pressure on house prices. Ergo they've massively increased the population.
When I was signing on I never heard about any of these schemes with charities. It was simply a case of "if you don't accept work, we'll sanction you" and that resulted in a massive increase in homelessness.
The United States is currently contending with the challenging combination of inflation and recession. One alarming aspect of this recession is the notable increase in consumer credit card debt. In April alone, credit card debt surged by 20%, with rates doubling within a year. Inflation has reached such heights that consumers are resorting to debt to meet essential life necessities. Signs of an economic collapse are evident, with the prospect of further layoffs looming. This is why I am contemplating entering the market now, anticipating an economic recovery. I am in the process of constructing a $600,000 portfolio. Do you have any stock recommendations for this scenario?
Concentrate on two main objectives. First, prioritize your safety by recognizing the optimal times to sell stocks, with the aim of reducing losses and maximizing profits. Second, be ready to take advantage of market fluctuations. I suggest consulting with a Certified Financial Planner (CFP) or another qualified professional to assist you in reaching these goals.
Depends on your age. I would keep 20% as cash for buying dips in major crises (20-30% index drop) and split the rest into standard ETFs and leveraged ones (max leverage 2x) depending on risk appetite. Interest rate is set to drop and economy should not go into a recession. I got about 70% returns from this crisis.
3:12 *I WONDER WHAT HAPPENED IN 2016?*
🤔
Errrr, we had a vote that was so "democratic" we could never, ever reverse it. (Unlike the one in the '70s........)😢
We need to take on more debt to get out of debt...
No! They are more clever than that, they borrowing to pay debt. (:
They are buying money that they will have to pay back later
debt is borrowing from the future. Debt wrecks future economies. Beware the Ides.
It's a bold strategy because it can go really well or backfire spectacularly, depending on whether the investments from that borrowed money end up boosting productivity more than the cost of that extra debt. And it's hard to tell if it's successful until a decade or so later.
As an example, all the countries that really excel in some high value adding industry like semi conductor manufacturing, got in that position because their respective governments pumped huge amounts of money into those industries. But There are a lot of examples of countries that tried to do that unsuccessfully, and just wasted a lot of money.
But even when it is successful it often results in the targeted industries gaining a worrying influence over the government. South Korea basically sold itself to its own megacorps to rapidly ascend from a piss poor agricultural economy the industrial powerhouse it is today. Their economy appears strong, but the general consensus is that SK has become an awful place to live, likened to a soul crushing cyberpunk dystopia without the cyber. Strong economic growth might come at a horrible cost, depending on how the process is managed.
The graph at 2:30 showing UK growth trend of 2%, has this been corrected for the adoption of chain weighting statistical method in 2001 which reduced headline growth by 0.2%
Sorry to put water on your fire of optimism for the future but we can’t grow out of this because of demographics. The huge boomer generation was the motor that got us out of the post WW2 issue, but it will be the cement block that drags us down now.
Tax revenue falling? 1) pursue tax evasion and tighten up the code and tax havens 2) pursue welfare claimants and fight culture wars. Which does the UK government choose?
neither! 😆
That's why u got brexit ask d eu
@@noelfleming3567The EU is still better off than we are.
@@anthonylulham3473 You know it is 2. Unless you are a Tory in a fit of denial....the only way a Tory can possibly stay sane after 14 spectacularly useless years. 😂
What austerity? The deficit spending is still rising. Where is the balanced budget?
thank you!
Only the US can increase its budget deficit without its currency being punished by global capital markets, since the US dollar is the worlds reserve and trade currency. If other countries try to do what the US does, their currency will fall in value and inflation increase.
Yep if the US prints money they get the benefits of that while the accompanying inflation is spread around the world.
That eta of low rates is 100% over but there is always a retest of the low, is that now? Is that little dip all we get of lower rates? It’s likely to drop to test the low, but then bounce hard up again, certainly will be the case for real rates us mortals can borrow at. That test of the low might only last a week, will be fast and non accessible to the majority.
Housing crisis is simple. Supply/demand.
There are too many people looking for housing and not enough supply. This forces up prices and makes housing a great investment, which means it isn’t just owner/occupiers that are competing against each other, but investors.
Then you have the incentives for housing developers. Many operate on relatively thin margins and need to dispose of properties at a timely rate to pay off finance. This means they want to build mid-high range properties as they get more cash per house, and can dispose quicker. Targeting the cheaper market would mean they make less money per property, which gives little room for error, and means they need to sell loads to people quickly…people that may not have the deposit.
Existing homeowners tend to have assets, meaning they can afford the properties.
This means there is a large underserved market that is being pushed out due to rising costs.
If people are serious about solving the issue then legislation needs to be brought in where buy-to-let mortgages are only available on new build homes. This would ensure new builds have a guaranteed customer-base flush with cash. It would leave older, rundown properties for first time buyers where they can make improvements and increase the value of the home.
Then legislation targeting mega landlords would seek to break these up, ensuring that no-individual can own more than 10 rental properties that they did not either construct or buy from new. Just put a huge and scaling tax.
If you're born 1990s and later you're basically begging your rich parents and grandparents for scraps despite having a better career and working more hours
Kick start growth but do so by cutting regulation and associated government departments. Green energy we are told is the solution but we are also told we already have significant "free" energy but prices have soared, when is this pay off supposed to come? Invest first in agriculture (we know how to do this), pharma/health (we know how to do this and technology (we are unlikely to be immeadiate world leaders).
There was no austerity, austerity means you live within your means and stop borrowing which is exactly the opposite of what the UK Government did.
I heard that living standards in Romania will be higher than the UK's by 2030
Then they will overtake us in being part of the climate catastrophe problem . Economics is killing us all .
Wait a minute. Did you say the UK cuts spending when it can't afford it? I live in the US and have never heard of a government doing this.
Our economy was bankrupted in 2008 under New Labour and has been kept on life support by debt funded government spending. This is common across the West and will get worse because of demograhics (ageing population). The US is a special case because it can sell far more debt given the world needs dollars to trade. If the UK did the same the pound would collapse or interest rates would need to rise.
And the US is enegy self-sufficient and has decent industry still - ironically improved by the Houthi attacks as import prices pushed up a bit.
4:07 is the source GDP in Dollars?
A short term mindset has caused the crisis we are in. Mp's only care about the next 5 years or until re-election instead of the next 10,15,20 years.
The problem is if you keep winning elections and if you keep failing to prepare for the future then future will be here in a blink of a eye. That's exactly what has happened to the Conservatives. Since 2010 they completely failed to prepare the country.
To get the UK out of it's debt loop we need 1. We need to invest in leveling up all part's of the UK. You need to create jobs especially in the forgotten parts of the UK.
2. Nationalise energy, water and housing sector's.
3. Major social housing building
4. Use the education system to the publics advantage by giving zero fees in sectors with a shortage of staff if you stay within the sector for 5 years.
5. Stop with the short term mindset of balancing the books by the next election and aim to balance the books within a longer period such as 10 to 20 years.
The NHShas not seen any increase in spending, giving money to private companues for profit, is not increasing spending on the NHS.
Peaceful wealth redistribution (taxing heavily wealth not income) or revolution? 🧐 Not many options left 😓
what about a wealth tax as the multi millionaires have all the money houses and assets ? wrong people in the wrong jobs has resulted in this mess
Since 2010 QE and Zero Bank interest was introduced .. in UK .. some of which increase house prices ...HOUSE price rise are the reason of debt reduction House prices are NOT measured as inflation ..only house interest rates repayment interest rate.. House prices = profit = exsppansion of service industry ... car sales and "hospitality" industry (not a industry, just sounds better than frivolous spending)
What's the difference between the money supply and the debt ? 10yr. bond yields have come down, I think they are going below 3% . The debt to GDP has come down since WW2, but the debt (over time) has always gone up? and (over time) must always keep going up? In 1972 the BOE 'deregulated' the mortgage market, what was that all about? What can a High St. Bank do that a Building Society can't? Why is there no vat or capital gains tax to pay on gold, after all govt. needs to tax everything it can at the moment, no?
Strange how growth stopped at the same time as the banks were bailed out and interest rates went down to nowt innit?
What he doesn't mention is that energy cost are four times higher in the UK than America. That in itself is causing this green stagnation!
Unfortunately, the UK has the same problem as other western countries: They squandered the 10-year time period of low interest rates and did not reach that escape velocity you mention. To "hope" that it is reached this time around when it has higher cost of borrowing and a higher overall debt burden is just crazy. Western countries will have to learn to accept a place in the world with a dramatically lower standard of living. This will require lower wages, less support services, and leaner pensions. It will not be fun. But then, why should Eastern Europe, China, and India sacrifice their standard of living for yours? Us Americans (I am American) have it just as bad but with much larger entitlement issues.
I agree but not just here.
Possibly a population demoralised by huge immigration, cost of accommodation, undermining of traditional values, etc., etc., etc., simply lack "animal spirit" and can't see the point in investing in the future.
high debt and no growth is an indicator but not the reason Britain is broke. So what led to growth slowing so dramatically compared to G7?
Also, what does MMT say about this so-called doom loop?
It says, print more money
It says a bit more than that though doesn't it?@@Isaachar72
To improve the financial situation in the UK we need to : 1. stop sending money abroad and invest in ourselves ; 2. Buy home made/grown goods that we make very well ; 3. Reduce the population by a lot , to match the human carrying capacity of these islands. Politics is all about planning for the future , and I am certain that all of the Parties are thinking about the underlying processes that underpin our commonwealth. To enable the three points we should be promoting free speech , strengthening democracy , and caring for each other.
Usa fiscal deficit is 6% in the middle of a boom.. this cannot be the example for any other country with projections showing that it will increase to 8% in the next years. If any other place would like to replicate this they will have a run against government bonds.
Even for the USA this is becoming unsustainable. Why do you think the new BRICS currency is being created.
It should be said it's time to jump ship, if I was living through this again I would emigrate.
'When interest rates were low we failed to invest'. What do they teach at Eton?
Productivity was poor pre pandemic, utterly useless now, stagnating wages offer little incentive to push for excellence, over- management, obsession with targets/KPIs, outsourcing, all on paper offer productivity advantages, but in reality have the opposite effect.
over management is a big problem in the West
Reasons that UK is in this situation is because the leaders are greedy and corrupt.
1. Having higher taxes on higher wages is not healthy for nation because it stimulate people to be lazy. Why should someone would wake up in the morning and go at work if you can get shelter and money for food provided by government? Just for 20% less than people who struggle to go at work? I don't think that this attitude is good for population.
2. Most of mayor's are put local taxes pretending a green environment in future and scrapped cars. They spent money borrowed from institutions offering vouchers for new cars. Well money from vouchers went into dealers and car manufacturers companies pockets and most of these companies are not from UK, so money fly out of country leaving government in debt. money collected from taxes has been distributed to another urgent needs instead to be inserted in better,safe and faster infrastructure. Probably ask yourself: yes, but scrapped cars were old and create a lot of CO2. Well....I don't think that ice age is coming from cars, I think is coming from space rocket testings, from private planes, from weapon manufacturers, from nuclear tests and so on. Older cars could be repaired when this thing is worth, and generate jobs for garages and mechanical engineers, and the ones who are out of service could be used as parts for replace the good ones.
3. Councils are bankrupt because lack of management and people who don't deserve their job. They give themselves big bonuses for doing nothing, poor management is a huge factor as well: instead to find ways to develop their areas with factories, infrastructure, hospitals they prefer to spend to borrow and spend money on benefits. I am living in Thurrock Essex that is bankrupt already because they borrowed £200milions pretending to invest in renewable energy, but actually the board gave themselves 100k / year in bonuses for each. They contracted a company for 3 residential buildings for insulation for more than 3 years and guess what? The job is still in progress because they took wrong dimensions for windows that should be replaced. Smart 😅. Everyone can do research in their are and will see that Thurrock is not a singular case.
4. Borrowing money at any time is good for a country only and only if money are used to bring return in long term. Borrow money for improve and build new hospitals, new schools, not for paying people's benefits.
Is there any good news?
High energy cost, supply by US?
Should talk about the Bank of England free money printing machine called fiat currency. Because of this interest is charged on free money what a cheek to charge interest on free money. Also taxation of all forms is a scam because of it. From this interest charge you have inflation. If interest was not charged there would not be any inflation.
Need more economical energy, open up shale gas in NW England (Lancashire) etc. and Russian gas imports. US gas far too costly.
How about a recorded Q and A with Gary Stephenson from gary's Economics
15 years of stagnation.....someone remind me how long the Tory Party has been in power?
Nothing works as it should. Why is that?
And the more we pay, the less we get. You're right, NOTHING works. All I see are cones on the roads (and nothing actually happening), mobile traffic lights (same again), and crumbling infrastructure. Wow betide you need an ambulance (5+ hour wait) or A&E (8-13 hour wait).
Truss was stitched up
In America those responsible for the debt are referred to as the Unzer Shtick, a name they gave themselves. What are their partners in Britain called?
I hope the reason the Labour Party dropped the £28bn commitment was to get rid of the number and then, when in government, quietly restore it. The number gave the Tories something to take pot shots at
That is certainly my hope too.
Yes, that's the usual Labour party approach, tell any old lies to the public about "budgetary responsibility" in order to get into power, and then, once in power, revert to type, borrow and spend.
Let us remember that the Truss government got itself into trouble by proposing a stimulus through unfunded tax cuts.
Would a Labour government see similar problems if it kept the Green investment programme in full?
@@jon-xd7tl
ditto the Tories with proposals to cut tax that can't be paid for.
Labour is the worse of 2 evils, vote reform
It is worth mentioning that the US currently has $34 trillion of government debt?
No point investing in economic growth engines without addressing the huge headwind from Private Equity LBOs.
Good time to buy FTSE 100.
This is what financial innovation gets you - gutting of tax base especially manufacturing, zombification of what's left, and endless financial crises from financial schemes gone wrong.
A lot of these people are not sick they are just playing the system.We are far too quick to encourage people not to work with generous benefits!
Generous 😂
Stop believing Talk TV or GB news. The fact is that there are long term sick people in UK - is it a surprise when you need to wait 2 years for a treatment ???
Second, you believe benefits are generous ?? Come on
U.K. has the 4-5th most elderly aged population in the western world, might have heard of this group, the boomers, the highest peak of baby born post WW2. U.K. is also a very unhealthy population.
Yeh, an Boris is a larf innee ??
Generous benefits? Are you on drugs? They are the most pathetic benefits in every category in the western world!
Boris is laughing all d way to d bank while people struggle 😮
Reducing energy cost will kick start the economy. Renewables are not the answer to a healthy economy but rather have caused stagflation, an increase in the cost of living and greater divide between rich and poor.
11 mins… not one mention of Brexit.
As if being a part of the largest single market in the world isn’t pro growth
Keynesian economics has been proven to work in the USA after the 2008 financial crisis so I feel we should try to implement it here.
That's because the dollar is a reserve currency. Can't do that in the UK.
OMG deluded or what!!!!!!!
Many Americans would disagree with you. During the Obama years, the economy was like car with its transmission in low gear and with the parking brake on. The number of people receiving the food stamp program increased sharply. For the 1st time in years, the number of business closings exceeded business startups. Our economy did not pull out the ditch Obama drove it into until Trump took office.
Working for who, Wall St short term possibly but not main Street.
It worked in the USA due to the Petro-Dollar. Keynesian policies have never worked, It's just constant borrowing.
The United States has really bucked the trend as the euro dollar trade required more issuance of debt and markets have effectively turned a blind eye. Also it helps that the reserve currency has exported inflation to the rest of the world. At the same time opinion writers have constantly talked down reserve currency status of the dollar as not that big a deal when many of the same problems in the US havent upset the stock or debt markets. I do think that we are overly pessimistic given other countries debt and growth projections arent great. What we need is a leader with vision and not just another manager as we seen to get with our politicians.
I wonder where all those billions that used to go to the EU and Brexit was supposed to keep went....
Way out “growth growth growth” but with Brexit that’s nothing more than a slogan