The Problem With Britain's Economy

Economic 'austerity' is a term that's used of the economy of Britain, never of that of other countries. It is the idea that deficits should be got rid of by reducing spending, not by taking out new loans. British banks think austerity is a horrible idea.

@MoneyMacro Would austerity work in Argentina?

maybe austerity not always bad !!! next video how austerity saved Greek Economy, maybe :P
??

Is there any economy that benefited by austerity?

Large wars & war time in a nation is when large chunks of bloated bureaucracy and rules on top of rules are put on lower priority as the nation needs to survive. When a nation enjoys a 80-100 year phase of peace, the bureaucracy becomes bloated with rules on top of rules on top rules. This requires ever increasing number of bureaucrats and life harder for smaller entrepreneurs.

This doesn't mean there shouldn't be clear and simple tax rules for all including the super wealthy (they should not be able to avoid taxes with lobbyists and consultants)

Your doing such a context less rationalization with this video. Arriving at your desired conclusion, that infinite debt is the answer. To do this you only use half the story this is when people like Peter zeihan are so important, they bring context and actual facts to this made up narrative. Britain is dealing with a demographic challenge, immigration challenge and above all, the lost of its main economic system which was to be the financial center of Europe. That said austerity has made things more manageable in an already difficult situation.

Austerity is the mind killer.

Cameron really was on a roll.

But the conservatives are good with other people’s money? Right?

Brexit karma😂😂😂
The tories have royally scre*ed British for at least the next 20 years. It’s incredible that British people keep supporting them but I guess you get the government you deserve.

Thank Goodness Americans Think For Themselves. Even if their fights lead to dysfunction or deadends.

And I also want to add, our police spend half their time attending pride parades and catching people speeding. They play softball instead of dealing with real crime. Spending is absolutely not the sole problem here.

Your videos are great, but somehow I feel people don't understand the UK well.

Right from the off, Education falling apart? False. The schools being awash with high grades is still a fact after exam results have come out.

Health system falling apart? True. Still working, but insanely slow.

Cities unsafe because of policing shortages? That's a massive over simplification. Our politicians have dish water personalities, and are reluctant to deal harshly with crimes. Break down in the family union and lack of religious cohesion to our Christian roots are all factors involved in this. When people start banging on about lack of funding being the cause of all this, I immediately get suspicious. It's so much more complicated than that. A lack of true entrepreneurial spirit in government is definitely a factor, and so allowing industries over decaded to disappear without asking these sectors exactly what's needed for success and giving them the free reign to do so, has probably left us with less money than we needed to do many of these things.

Budget responsibility is something the sober minded in my country have always tried to do, they just lack more steel that is more typically seen in the braver Americans.

The one common theme is actually mass immigration

I first read how Australia ruined Britain...

Yeah, a lot of neoliberals often forget that the public sector is covering a big part of the economy, and cutting that suddenly does not mean that the services, employees and wealth generated is going to be taken by the private sector. It may just get fucked over.

Between austerity and Brexit, David Cameron could quite possibly be the worst piece of news for Britain since The Flood.

"But, but, BUT...
IN ENGLAND, NORWAY, SWEEDEN...
ALL SOCIAL SERVICES ARE FREE!!!"

Very interesting analysis. Thank you.

UK governemt spending passes 1 trillion
"W-WE ARENT SPENDING ENOUGH!!!"
Austerity is a myth and has been since before coronavirus.

Some of these claims are just outright lies. For instance there has been more real healthcare spending every year in the UK since the year 1990. The graph against Germany is just wrong and for more accurate ones check out EconomicsHelp's page on UK government spending, real and as % of GDP.

Now, have the economists who thought up that magical-thinking nonsense of expansion through austerity resigned in disgrace?
Probably still get fatter on well paid talks and positions, eh?

Austerity to save on debt is so retarded, it physically hurts anyone with a functioning brain.
What rate did germany (the stereotypical welfare state) pay over the last 20 years, in real terms?
Oh right, negative rates, we actually made money by being in debt.
Why?
Because we have functional public investment creating a functioning society which makes the money to guarantee payment.
Lower risk = lower return, to the point where you get paid for safekeeping value rather than paying a risk premium.

Yeah privatization is largely a sham lol

The mistake Cameron and the Conservatives made is choosing austerity over serious reforms. Fix NHS and focus on stimulating the economy coming out of the GFC, which would’ve required more deficit spending. Reform a clearly broken NHS. Then pro-cyclically raise taxes once the economy is growing again and remove stimulative fiscal policy. The Conservative Party wasted their political capital on counterproductive economic policy and the unsatisfactory results probably contributed to Brexit. Britain’s economic prospects are considerably grimmer than most Western countries right now as a result those consecutive economic catastrophes

Do I agree with you conclusion? One has to ask… “What if things would have been WORSE overall if austerity had NOT been implemented?”

What if a downward spiral was inevitable and what is being experienced is better than the alternative?

I think this needs to be considered all the time going forward. The nations of the world are experiencing demographic collapse. Nations which have large social spending programs will be hit hardest because such programs were built assuming parents would always have kids and populations would always grow. If each generation has fewer children…then that all blows up in your face.

Thing are going to get worse and worse. Nobody should expect them to get better. So the “best” that can be expected going forward is not improvements to quality of life…but rather seeking “the best of the worst” choices. Or the “least bad”.

Also…you can’t just solve this problem with immigration. People can’t be swapped in like car parts. High tech economies that rely on high education workers who are BATHED in education from a young age cannot just be replaced by importing just anyone from another country. Unskilled and uneducated immigrants cannot effectively help those economies because they need people who have much more education to keep them running properly.

Essentially…until women collectively decide they want to stay home and focus on being mothers instead of having a “career”…..and until families are willing to adjust down their expected standard of living that such a decision would make….western economies are screwed.

The only hope really is that we can create an army of AI robot slaves that will be able to work along side everyone and double their productivity. Other than that…it’s only going to get worse from here.

Very interesting video.I sucribe it. Poor englad folks, god helps them. Would you analyze the economy of Argentina?, I know Argentina´s economy had a lot ups and dows, but is interesting that now they want to aplly the austererty theory while this is happening in UK.It´s funny cause seems never had worked before , I mean in the UK they literaly had the goverment of Margaret Tacher. But Gen z never looks up backward in history and also less a forainge country. But I would like to let all my preujice aside and listen a real PhD talk about it.

Tory economics working as expected

You always explain it well!

What does "austerity" mean?

Great video, would also be interesting to assess the idea of trickledown economics that has been widely propagated and implemented throughout the West…

I agree with your evaluation but how can England turn it around??

Austerity is basically like not maintaining your car and expecting all the problems to fix themselves and the value to go up. Don't invest in people, services and infrastructure and your economy's tyre will blow up on the motorway and it will crash in a big ball of flames!

I would argue that austerity was a success. The rich got richer. As a result, they have even better access to private health and private education. The people who took the decisions benefitted hugely. It also helped remove the UK from the European Union and thus paved the way for reduced rights of the rest of the population. How did that ruin Britain for them?

Austerity is the go to policy of the British Conservatives. They implemented it during the Great Depression and after WW2. As a noted economist (Milton Friedman?) said "austerity is like punching yourself in the face - it only feels good when you stop"

Whatever they say austerity is about preserving the wealth of the already wealthy.

With interest rates sometimes below 0% the post GFC environment was ideal for state investment.

Economic arguments are irrelevant to people like Cameron and Osbourne - they are third line justification likely put together by consultants to justify state destruction and asset stripping benefiting "mates".

The blatant corruption of the Torys under Johnson during Covid was just a redux of what occured under Major.

Cameron's austerity has not been reversed it continues to this day.

Financial oppression of the poorer 99% is causing people not to have bigger families. The u0tra rich (whose E4$t Ind1a company previously exploited India albeit differently) must fear losing their investments in Ch1na: the US congress is controlled (in thr house amd much of senate) by the same uotra rich that secretly transferred US jobs to CCP factories in China and own enormous farms and mines hroughout South America, including Brazil. Read "The quiet coup."" Ownership of such land through anonymous societies ("sociedad anonima" in Spanish) has enabled them to avoid having to pay any US taxes for decades: e.g., from their profits with their CCP allies in quasi slave, CCP subsidized, Chinese factories. Read in Gizmodo how Apple legally avoided $50 billion in US taxes by similar tactics.

The US ultra rich created and desperatelly defend these gigantic, tax loopholes. They will protect their CCP allies, which is why W4ll Str33t minimizes the C C P's corruption. This comment may be c3nsor3d because it reveals this secret alliance. S0ci0p4ths and psych0p4ths must be tested and their names revealed (given the strong hered1t4ry aspect of their condition); e.g. in finance and among judges. They are the ones who created this unholy alli4nce.

While they get US protection and US military defense, they avoid paying 99.9% of the taxes that the poorer 95% of Americans pay despite the fact that those less wealthy 95% of Americans own only 1% to 9% of total, US wealth. (It is hilarious that so many Americans thought the orange guano ball, who benefited from this corruption all his life and actually gave himself and his golf buddies, each, a tax cut of millions in 2017, would help them fight his golfing buddies' corruption. LOL Will they vote for H4rv W3inst31n to defend bux0m actr3sses fr0m s3x cr1mes next? Or maybe, the pr1v4tE own3rs of the F3d3r4l R3s3rv3 to prevent b4nk3rs' fr4ud$?) A US wealth tax, even of 1%, would reveal the uotra r1ch's carefully hidden, ginormous, untaxed, US wealth and US income. It would prevent the US uotra r1ch from rescuing their C C P cronies to keep hiding their wealth in Ch1na.

Otherwise, the uotra r1ch will and plan to
continue to block any attempts to crash the C C P's teetering ec0nomy by the US and EU blocking the unnecessary exports from its factories: e.g., D J II, Lenov.., V0lv0, C A T L (which is trying to use C C P subsidies to corner the electric car battery market as the first dominates drones), etc. Only that might result in r3g1me ch4nge. I can live without cheap drones in exchange for a fr33 Chn4.

N0rth k0re4 is proof that its is not misery or famine among its population that can collapse an oppressive, well-armed gang of autocrats: it is suddenly accelerated catastrophes that result in loss of hope that might, possibly deprive it of military support and collapse it as in Imperial Russia during WW1. Otherwise, Ch1n4 will become N0rth K0re4 v. 2. If so, as a wise man once said: the second, next war will be fought with sticks. Those who would remove the C C P must first defeat their secret 4llies.

de plus pour la covid y’avait même pas besoin de stees de conseils ont n’a nos spécialistes en postes sur le terrain qui ce serait fait un plaisir d’aller consigner le gvt

les stèes de conseils c’est bien ça permet d’avoir moins de personnels à l’année saufqu’il faut qu’elles soient du pays pour l’économie du pays 😂

il l’ont faite quand ct pas nécessaire et au mauvais endroit de plus di c’est pour prendre des services privés d’extérieur au pays c’est pas la peine des services de conseils intérieur au pays pour l’économie

la covid couler l’économie et le brexit ça fait bcp

le piège l’immigration

quand le pétrole va ce tarir de quoi vivras t’il bon les femmes conduisent mais ça pas faire assez🤪

baisser la dette public moins d’élus plus d’excellence c’est possible mince alors et le numérique ct aussi pour ça 🤪

l’immigration c’est pas la solution regardez les frais les feux là violences ça creuse les caisses ss publique police …. tribunaux … hôpital … eux ils paient pas

moins d’impôt ça vais venir et revenir des investisseurs et ça dégage une marge de pouvoir d’achat

réduire les non productifs avec les nouvelles technologies c’est possible est memes recommandes pour baisser les impôts et dégager du pouvoir d’achat préféré l’électrique au pétrole via le solaire plus d’essence le l'éthanol l’hydrogéné voiture électrique plus de gaz … le panneau solaire pour l’essence 🤪

It might be worth looking into the money backing your sponsor, 80k hours, Check out the work of Dr. Emile P Torres.

The way I see it money at its core is the power to decide hours of work and what type of product, resource, or service the work is done to make.
I wonder if it was the case that a whole lot of Britain's capital was the power to make people in other nations work for them based on more debt than Britain has the likelihood to fully return?
If so, it'd be a natural adjustment for Britain to lose a lot of power to make others work as it didn't have the backing to support that claim to foreign working hours.

Im surprised you didnt highlight that "lower wages" leads to lower consumer spending in the private sector which is exactly the opposite of expansion.

Making government more efficient always make sense, spending less rarely does because states are generally way behind technological developments and population growth. The idea that you can somehow manage a larger population and larger, more complex economy, with less state spending and less personnel really comes across as wishful thinking when you spell it out in plain English, especially when so many government services have little potential for automation at this time. If you have more patients, you need more nurses. If you have more students, you need more teachers. If there's a way to do more with less staff and spending, chances are good the public and economy would prefer and benefit from higher quality service rather than reduced spending.