The UK’s Economic Crisis – Why Are We Becoming Worse off?

A look at problems facing the UK economy - low growth, low productivity, stagnant falling wages, inequality, and what caused it.

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[chrise]

"UK is a poor country, pretenting to be rich" - so godamn true

[bradleysdavis]

I only came across your channel a few months ago. The quality of material you put out here is fantastic and you deserve far more attention.

[MatthewRivers-Davis]

Thanks, Tejvan - these economic fundamentals are really quite scary - the UK is the sick old man of Europe with out-dated capital, an economy overly focused on financial services growth concentrated in London and a lack of investment that is making us internationally uncompetitive as a trading nation compared to the burgeoning economies of central Europe. Large areas of the UK have never recovered from the deindustrialisation policies of the 1980s with the hysteresis of structural unemployment leading to people choosing low paid gig economy jobs - all in the name of creating a low cost (wage) economy that keeps the average costs down for the multinationals and supports their profits. As the world moves on with real wage growth and our economy declines with a falling £, the price we will pay for goods will increase as our food and manufacturing security declines. I feel we are like a poor under-developed nation being exploited by transnationals with economic shocks like the banking crisis and Covid adding a further blow upon a bruise.

[Steve-GMHUU]

Productivity is a good point. Higher than normal numbers retired early as a result of Covid. Also, ONS stats show that retirements are set to ramp up over the next few years. I reckon that lack of investment in new technology and lack of investment in education in new technology has been a problem for decades.

[widebleek]

Can you please do a video about Education & Skills and why so many people in the U.K. lack qualifications and skills. And why people in the U.K. are most illiterate country in Europe? Thanks.
(OECD report) 👍

[kevinu.k.]

Such a very good video - Well honed and clearly a lot of work put into it. Thank you.

I cannot but agree with all that you flagged up. However the 'ordinary people' are haemorrhaging wealth upwards to the few and to corporate business. We are much like cows being milked twice a day and being butchered at each recession by the finance sector.

We can shift a little wealth north, we can shift some down from the median folk, but until we address this great blood transfusion upwards it will not help so very much.

Anyway Ta - 👍

[anthonylulham]

The 'Aging out' of skilled manufactuering is a very scary process. the country needs to return to building things that no one else in the world can. we used to be to cutting edge of motor car manufacturing and steel. now? now we import enmasse. heck, even the labour is foreign

[samanthaholland-ksbc]

All your videos are amazing. Thanks so much! I'd love to hear your thoughts on the future effects on the economy of the English university funding model. Is it sustainable to have foreign students subsidising UK students, and where will this leave the uk labour force in the future? Xx

[peenjedoyle]

Getting more fluid in your monologues👍

[andrewmoorhouse]

Great analysis Tejvan. Clearly a lot of work for you studying the data from so many different sources. Whatever someone’s political stance, it’s hard to argue with the facts and they speak for themselves. Like many business issues, it’s not a single thing that causes a downfall, but many factors. Clearly we need to change our policies and outlook, otherwise the downward spiral looks set to continue. Thanks for such an interesting video.

[krasavchik]

Many facts about UK in this video can easily be applied to the US. In many ways it is the same here. “Poor society”

[mcc.o.]

Phew well at least the billionaires are better off! Wouldn't want them to lose out on having their 3rd home or their luxury yacht.

[Abraham_Tsfaye]

When I was in UK. I saw empty boarded up streets under a constant grey sky, litter everywhere.
Homeless people sleeping in doorways. Opioid addicts out of their mind and women so drunk they urinated on the streets. It's a sad declined country

[ch]

Gift from America's greed 2008 crash to UK austerity. Big friend

[wangjim]

When you have four Prime Ministers with one term and when all they worry about is their job, this is the result and the worst is yet to come.

[jontalbot]

It is noticeable in the comments that quite a lot of people imagine the solution is simply tax the rich more. Would be good if you address this as an issue because it is widely believed. Perhaps also you could discuss some of the things which might address the issues of low productivity and investment

[lorenzbroll]

With a low wage/skills economy what else can you expect but pedestrian productivity/groth?

[martincopeland]

It’s because Jeremy Corbyn invaded Ukraine, if I followed the Tory rhetoric correctly.
Definitely nothing to do with Brexit, definitely not, no.

[scrooge-mcduck]

Short-term-ism coupled with severe crisis in leadership.

[johnwhitcher]

We have been a low wage economy for years. But increased prices
Have shown this more, so either prices drop or wages increase.