The UK's Forgotten Economic Crisis

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#history #economy #housingmarket

Written & Narrated By: Sam

Video Created By:
Svibe Multimedia Studio
Editor: Cardan
Media Gatherer: Andrea Rivas

Footage Courtesy of: Getty Images

Music Provided By: Epidemic Sound

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SOURCES:

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The British economy is in… a bit of a mess at the moment… to put it mildly.

Unemployment is rising, salaries are stagnating, houses are unaffordable, cities are going bankrupt, our public utilities are in dire disrepair, and people are covering this shortfall with debt…

But what if I told you that we have actually been here before, and that this slump was set in motion almost 60 years ago, with these… boring British townhouses…

These quintessentially British living quarters are the remnants of a forgotten financial crisis that actually saw house prices become EVEN MORE unaffordable than they are today…

Depending on who you ask, the 1960s was either an era of free love and radical thought, or an overrated blip of colour in a drab decade.

Either way, when it came to the economy, Britain was going through a dark period.

And it was all because of the housing situation.

Victorian architecture and quaint villages were torn up to be replaced by brutalist tower blocks and commercial centres.

Instead of white picket fences, suburbia sprawled with glaring brickwork and factory backdrops.

Architects believed they were paving the way for a utopian vision, where more people could live closer together, with more neighbours, for a stronger community.

In reality, the rapid growth of the housing market almost tanked the country’s finances completely.

And those tower blocks didn’t house any more people than the streets anyway. They needed more space to separate the community housing as per health and safety considerations/

And instead of improving the living conditions of the growing population, the rows of subpar new builds made things worse for everyone.

[Joegolberg]

Our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy >>and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[Riggsnic_co]

Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

[danternas]

40s: The problem is low supply.
50s: The problem is low supply.
60s: The problem is low supply.
70s: The problem is low supply.
80s: The problem is low supply.

Should the councils start building houses? Nah, more credit!

[sebastiaanthijn]

It feels like it's been flying under the radar compared to other global issues, but there are serious concerns about stagnant growth, rising debt, and increasing inequality.

[bazil_b]

I lived in London for 4 years, it's unreal how they charge you so much for housing that is often bordering on squalor.

[oldskoolmusicnostalgia]

Visited the UK in 2008, pre-GFC when it still gave the illusion of a booming economy. I looked at the housing conditions and thought: surely it can't be worth earning slightly more in the UK to live in such dilapidated housing, when one could be living much better back home albeit with lower nominal income. Quality of housing has a massive impact on one's daily life, it's not something wages can compensate for.

[TilSchweiger-if]

Our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[dooley-ch]

The housing crisis in the Anglosphere can't be solved or even reduced significantly because:
- The voters won't accept any solution in which they don't get to own a house
- Those voters wishing to buy a house need for prices to drop or at least stabilise, the minority of voters
- Voters who already own a house, the majority, need prices to appreciate so that they avoid negative equity and accumulate wealth for retirement
- The taxpayer must finance all housing either through taxes to build public housing or through huge mortgages to acquire their own house.

So good luck to the politicians trying to solve that one.

[LeonardBethune]

Never underestimate the willingness of the greedy to throw you under the bus.

[daniell]

From the US - nice to see that we aren't the only ones having a hard time figuring out how to balance economies. I hope Brits finally get a chance to own their first houses; as a first-time home buyer myself, it is a fantastic investment that provides continuing benefits for as long as you have the home.

[Millerj]

I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $50K per year but nothing to show for it yet.

[gedbyrne]

Most of these new homes were council houses, which weren’t available to buy until the 80s and the ‘Right to Buy’ scheme.

You are comparing the council houses to 1930s homes built for the wealthy when it should be compared to the terraced slum housing it was replacing.

[cadmean-reader]

Ironically, most theoretical utopias I hear that gets pushed into reality turns into some form of dystopia

[cunawarit]

Living standards in the UK have struggled to advance, particularly in the realm of housing. Modern British homes often lag behind those in other developed nations, both in terms of amenities and size. With an average size of just 80-100 m² (860-1, 080 sq ft) for a single-family home, British houses are significantly smaller compared to those in France (130-160 m²), or Spain (130-160 m²). Even Japan, with an average of 100-120 m², offers more space than the typical UK home. In terms of housing, the UK is undeniably at the bottom of the table.

Unfortunately, this issue is unlikely to be resolved soon, as the UK has consistently made the wrong choices along the way. New homes are still poorly constructed, too small, and inadequately spaced. Planning regulations remain overly restrictive, and past failures in apartment building have left many potential buyers wary of such options. Additionally, essential features like garages that actually accommodate cars or adequate cooling systems for increasingly hot summers are often missing. Simply put, the UK seems to be getting everything wrong when it comes to housing.

[vladimirpugh]

Sees the graph; googles when Thatcher came into office; Yep, that tracks

[mikitz]

The major problem with housing policies is that no matter how you manage to solve one aspect to the problem, you inadvertently create a huge new one. Then you combat that and we're eventually back to square one.

[Cynthia-mmcv]

The dollar is literally being destroyed / debased / devalued. I just want my money to keep outgrowing the inflation rate. How do i invest about 250k i have parked in the bank and what strategies do i employ to make significant gains and stable cashflow?

[nikmwh]

Too many people in Authority often see concepts like supply and demand and freedom of choice as silly and insignificant, they see people as just commodities that don’t need to be given due consideration, it’s happening again now.

[dhvanitdesai]

"Will Britain repeat the same mistakes now that the cost of living is the highest it has ever been?"

LOL absofu**inglutely

[norwegianzound]

You know what's not ugly? Englands lovely houses of the robber barrons that are the aristocracy. They are splendid.