Is UK Debt Getting Out of Control?

[@economicshelp]

I posted more graphs, that didn't fit in video. on my blog www.economicshelp.org/blog/216807/economics/is-government-debt-rising-too-fast/

[@aerodylluk2543]

Frankly I am fed up with the hopelessness. Ever since I was early 20s it has been one thing after another. Can tell a politician is lying when their mouth is moving. It feels like we haven't had a decent politician in decades.

[@flakieflake9616]

Given the pittance they are paid why are you surprised ?

[@Leningrad_Underground]

You get the political class you deserve. You are supposedly free.

[@eriktopolsky8531]

Brits all are, yet they can not just close the eyes amd pretend this will go away by itself

[@nowisgodinyourlovelylife717]

The system is crooked, it only attracts bad people with personal interest only, they do what they like and nothing happens, no punishment, absolute nothing

[@Aendavenau]

Its a structural problem, the politicians (aka neoliberals) has sold everything that they have been able to and used the money to finance tax cuts for the rich (who used the money to buy what the government sold). Then they have borrowed as much as they can to fund tax cuts for the rich (they borrowed from the only ones with money aka the rich). Then they have underinvested in everything else including schools, infrastructure, housing and used the money for tax cuts for the rich. Now there is no kids so no young workforce and the few that was unlucky enough to get borned has an average worse education (once again, the money was needed elsewhere) and more elderly to support. Try to turn this around.... good luck.

[@nrmleigh]

All this debt, but more millionaires! The US debt has risen by $30 trillion since about 1999 and they have more billionaires! Makes you wonder where the money goes.

[@darkhorseman8263]

100 studies show trickle down economics is a scam. Billionaires are bankrupting entire countries so they can liquidate and control their assets.

[@kamaldaud2782]

Hehehe simple economics.

[@omonkkonen6676]

Those billionares are poor on currency which is used for governments dept. They are rich of assets.

[@darkhorseman8263]

@omonkkonen6676 They use assets with loans against said assets as a tax avoidance mechanism.

[@omonkkonen6676]

@@darkhorseman8263 I know. Just waiting someone to establish bank of Dave which could hold company salary account and every Month salary day it would give a loan to worker against company account balance and take 1% between. Then worker would not need to pay income tax as there is no income at all.

[@jimmyjigz]

I understand this is an economic video but the UKs biggest problem isn't an economic one. If there were still a sense of community people wouldn't mind tightening their belts. Young people grow up in hopelessness, completely betrayed the by older generations who profited off the sale of their future. Clap for the NHS.

[@Lighthawk1986]

Basically seen everything that made the UK amazing getting sold off or mothballed to help pay for what seems to be day to day spending. The UK is finished if it touches those private sector savings or prints money. Loads of people with the means are already leaving. Who is gonna stay if they start raiding savings?

[@willyhill7509]

The older generations are the people who left school and started work at 15, worked and paid taxes all their lives so that the younger people could have a better life. The people who took that better life away are Tory and Labour Governments over the last 25 years.

[@chrysalis4126]

Thatcher was the one who sold off all our "silver" in the 80s and we are reaping the results of that.

[@jimmyjigz]

@@chrysalis4126 who sold the gold?

[@aerodylluk2543]

@@jimmyjigz Definitely not Labour, they've never made a bad decision. And if they did, they leave a note saying 'not us, the blues did it'.

[@cobbler40]

All our infrastructure is crumbling and we cannot afford to replace it.

[@davidgavin7280]

Because we've had to sell much of it to pay for our trade deficits. Much of our trade deficits over the last 30 years have been with the rest of the E.U. Remainers don't understand how much our E.U. membership cost us. Name one overseas infrastructure/utility company owned by the British government. Then look at how many in Britain are owned by European governments... Then we throw in the Chinese...

[@tinaclarke5498]

10 million unskilled newcomers broke England

[@vonder7]

For the middle class Uk is the most heavily taxed nation in Europe while having none of the European benefits. The issue is that it doesn’t pay off to work. I was literally only getting 38 percent take home from what I was charging my client under ir35.

[@ENoob]

Implying that debt and deficit spending incurred to fight a war is equivalent to the debt today, which is driven by spending on entitlements is ludicrously disingenuous. Wars generally end and the spending stops. The deficit goes away and the debt can be repaid. In contrast spending on entitlements is set to grow, not fall to almost zero in a few years. They are simply not analogous situations.

[@scottyfive4319]

It has to be "paid" back no matter what it was borrowed for. Now answer me this if Westminster has made the correct decisions over the last 50+ years, why has government debt gone from £80 Billion circa 1980 to £3 Trillion circa 2024, and why does the UK have many of the most economically deprived area's in Europe, with Dickensian diseases like rickets and scurvy on the rise and hundreds of thousands of cases of malnutrition discovered every year in patients hospitalised for other reasons???

[@mutton_man]

He didn't say it was equivalent to today's debt. Napoleonic war and WW2 went up to 250% GDP currently we are at 100%. He highlighted that alot of the debt was used to build infrastructure and to nationalise industries like rail, utilities. And that future expected increase in debt is because of a aging population. It's a difficult problem to fix. Would you cut pensions or raise the pension age?

[@scottyfive4319]

@ 50 years of government for the rich by the rich, if we had a decent economy that employed everyone and more importanly gave reasonable wages we would not have this problem. Hey Ho England keeps voting Tory and complains at the result.

[@dumbguy1007]

We could wait out the boomers and things might start to settle down as the population corrects and a massive dependent portion of the population goes away along with their "entitlements"

[@peterh7842]

As stated - in the past we still had assets - now we just have debt and liabilities

[@iriscrocus1717]

Most public assets were sold to friends of the Tories at a knockdown price.

[@TeaPea111]

I don't see how we can avoid recession when this employers NI hike comes in.

[@Alex-fm5ke]

You know NI was reduced by 2% last year, so this increase isn’t really an increase. It’s a change from employees to employers NI.

[@TeaPea111]

@ yes, I am aware of this. That’s why many service businesses will go pop, cafes, bars etc run on wafer thin margins with lots of part time staff.

[@wokelefty]

To put into context, the UK annual debt interest payments = £2900 for every working person.

[@saasda6255]

Doesn’t sound like that much

[@healthygrowth7760]

Working people don't pay for that debt. What you are saying is based on complete ignorance.

[@mutton_man]

Wrong way around, that would be a payment from the government to the private sector of £2900. An increase of the government debt is an increase in asset for the private sector. The problem is alot of that money ends up in the hands of the very wealthy. Some of it does end up with the average person as you can see UK household savings have been increasing the pass few years. But the majority end up with the very wealthy.

[@j4cksincl4ir]

@@saasda6255 the figure represent the compound usury

[@steeldoubloon19]

@@mutton_mant he downside is only the wealthy can provide income be it from tax or from borrowing, of course billionaires avoid it. I believe working people shouldn’t pay tax on the first £20k then a flat rate of 25% thereafter, this should also scale with CPIH inflation index. Furthermore companies who extract profit abroad should pay a rate of corporation tax of 30% whereas if profits are retained and spent in the Uk that rate should be 15%, therefore hopefully encouraging business to keep their money within the Uk

[@christinemurray1444]

You know things are bad when you seek solace in making comparisons with WW1 Britain.

[@papadajnia268]

uk is gone ....once perfect country to make money ....now no money no safety no sun ...nothing make me wonna saty here

[@clarkhunt4014]

The problem is the government isn’t spending on investment for a return we should have all new infrastructure like japan but we are spending on welfare for that to go into global company’s pockets away from the uk we have a hole in our pocket while infrastructure is falling apart

[@MyKharli]

Mostly goes on tax breaks to people who could easily carry more share of the cost of decent UK infrastructure and social commitments .

[@vvwalker7261]

The problem is that politicians aren't incentivised to fix the roof while the sun is shining. Rather than aggressively repaying debt after the GFC, the govt found more stupid ways to waste cash. The UK should have taken the same path as Ireland

[@piccadillyvision3761]

like giving asylum seekers a free lawyer, hotels, allowances, foreign aid, payments to the WHO, woke nonsense, money to Ukraine, a war which we provoked with NATO's eastward expansion and money for nuclear weapons that don't seem to work.

[@markconway2380]

Bond yields, debt, debt to gdp, quantitative easing? Very confusing. High immigration, no REAL jobs, lack of housing on our continent - more snouts into an empty pot and poor property developers and corrupt politicians? financial problems?

[@blackorangey]

Thank you Tejvan for your patience through this mess. To another interesting year with your insights.

[@nicholasreid7296]

“Worse than Liz Truss some papers hysterically claim”. Hold on, isn’t it literally worse than Liz Truss?

[@Rgbonet]

Debt is not really to much of an issue as we run a fiat currency. The government can borrow from itself without an issue provided that it uses the money to invest. The key thing is to separate taxes form the ability to spend. If inflation is controlled by removing the extra from the economy via taxation. The other side of the coin is to make sure that taxation is fair and we end the ridiculous situation of a multimillionaire paying effective rates of 3 % or so

[@deekayunited3445]

Spot on. Money is spent into the economy and removed by taxation and destroyed. Taxes don't pay for anything, they moderate inflation (better than interest rates), facilitate government policy and give the currency value.

[@stumac869]

It may not be a problem for government but debt spending will bankrupt the people.

[@RabbitMask-c7v]

The Fiat scam only works so long, before people cotton on

[@eliotgoodfellow7294]

It can until it can't. All goes pop.

[@mutton_man]

I agree using taxes is a better way of tackling inflation than interest rates but only for demand driven inflation. Can you imagine putting up taxes these pass few years, when people are struggling with increased bills. When its supply driven inflation, sorting out the supply chain, and spending more to sort out the supply issues would be better. Raising taxes would be horrendous during supply driven inflation. Unless you raise it on the very wealthy to a point where they consume less resources then that could be an option. But most inflation is supply driven, in very rare cases would I use taxation as a way of combating inflation.

[@jaceklaszkiewicz203]

Same in Canada , Canadians spend $1.80 per each $1.00 earned

[@fern8580]

Is UK Debt Getting Out of Control? or Is UK political elected without power to fight unelected civils servants , Getting Out of Control?

[@eriktopolsky8531]

Brits all are tired of hopelessness , yet they can not just close their eyes amd pretend this will go away by itself

[@mbrechenser2]

The UK government borrowed 413 billion during Covid. The BOE created the NEW money to buy government bonds which in turn was a massive contribution to the inflation we experienced.

[@Hunterthepunter126]

Everything seems perfect in your view! We will see what will happen to the UK jobs with heavily taxing the employers.

[@henrikalo3379]

Unless companies decides they don't want to make money in the UK, they have no choice but to hire people in the UK.

[@Hunterthepunter126]

@henrikalo3379 This is not the case for all Companies. Many of them could not survive high taxes. If you look at the major supermarkets for instance, they stopped hiring people and lay offs might follow. Uk job market will have a huge impact from these policies.

[@Perdition84]

No, a sovereign issuer of a currency can never have a problem paying a debt issued in said currency. If the UK has external debt however that might be a problem. There might also be a problem in who owns the debt and therefore gets all the interest payments(the rich), and who gets their living costs increased(the poor/working class).

[@ianclose123]

I wonder how AI will further complicate this situation? The more jobs are lost to AI, the more benefits recipients there will be and the less contributions to the state Pension.

[@arthurdixon5890]

AI will replace many of the existing middle income employees. The government needs to consider how these people’s/families will be financially supported. They need to do this now.

[@rebecca_noble]

Uk debt is 103% and climbing.

[@silvafox7719]

You can thank the Conservatives for tripling the national debt over their fourteen years of torturous tenure. We're a fiat currency, so we can't go bust. Post WWII we were running at 250% GDP. Change in thinking is required though.

[@healthygrowth7760]

Debt is an asset... or do you think elon musk is poor because he has debt? 😂

[@silvafox7719]

@@healthygrowth7760 Money is a tool to buy assets. If you have money in the bank it's a liability to the bank. I get your point though.

[@healthygrowth7760]

@silvafox7719 government debt liability is asset to you, you put that asset in the bank so it's a liability to the bank.

[@silvafox7719]

@ Isn't it bizarre that Musk could not be taxed on his shares, but could use them as collateral to buy Twitter? The laws are skewed in the favour of the elite.

[@piccadillyvision3761]

QE is being reversed to subdue inflation, and to maintain the value of sterling. If the BoE prints money during inflation then we will enter a spiral, like Argentina or Zimbabwe.

[@akula9713]

With all that going on, the government spends profligately. We don’t have the industry we once had. Fully financed social care would cost the country £1.5billion a year, but Labour pledged £3billion a year for as long as it takes? What is the ROI for a U.K. citizen on that £3billion?

[@stephfoxwell4620]

No. Don't be ridiculous. We've had a National Debt since 1692. It has averaged 93% of GDP. It has been as high as 246% It is currently just over 100%.

[@GrahamWoodward-ww1zf]

With the low birth rate could successive governments have long term plans for our irregular migration hotel residents.

[@stephenthomas3085]

Why on earth can't we allow them to work as part of a longer term path to permanent residency...? We have the acute sectoral worker shortages.

[@gerhard7323]

The key to understanding public debt is to understand that it is equal to the exact penny of a private surplus. The next question to ask yourself is exactly who owns that private surplus and what interest is payable on that debt/surplus? Much of UK debt is owned by insurance and pension funds and other financial institutions. The BoE itself owns around a quarter of UK debt and overseas investors own just under 30%. Any profit the BoE makes is supposed to either go to the UK Treasury or used to bolster its reserves. Amongst other things, this raises interesting questions about the huge political power these essentially faceless, largely unaccountable institutions hold.

[@fern8580]

@gerhard , your comment is interesting! I will add that there is a lot of money captured by life insurance, pension funds, "government funds" which invest your money which the next day becomes "illiquid", we will soon see it with the pension "funds" which are no longer able to make liquid money for their retirees : the contributions that they had entrusted to them.

[@gerhard7323]

​@@fern8580To be frank, much of it's a scam wrapped up in a plausible narrative. What you, I or even a relatively few others believe isn't relevant. It's really about what the majority believe, I'm afraid.

[@fern8580]

@ great comment, you are one step above us!

[@gerhard7323]

@@fern8580 I'm not, but I still appreciate the comments.

[@Brian_Equator]

We have a Labour government - of course debt is getting out of control. Did you seriously expect anything else? As David Starkey once said (something along the lines of) - "A labour administration always ends with a financial crisis and a run on the pound" Brian.

[@silvafox7719]

This is an ill thought out message. This Labour government is simply neoliberalism in a different coloured tie. They are the same as the Tories in their economic approach. The solution is to change the fiscal rules. The BoE works for the government, not the other way around.

[@stephenthomas3085]

If you are reduced to quoting David Starkey then we are all the losers..!

[@Brian_Equator]

@@stephenthomas3085 Hi, well you have half a point I must concede 🙂 With this government we are all the losers irrespective of who I quote. It gives me no pleasure at all to say this by the way. I am old enough to remember the shambles that Gordon Brown left behind him. As a boy I can just about remember that dickhead James Callaghan, when inflation hit 17%, we hit 5% unemployment (back then we didn't have millions on the sick, people worked, so 5% was a lot) This shower will be no different, sadly. When two-tier called in the regulators to ask for suggestions on growth recently errrr - sorry Sir Kier that's your job. 6 months in and he already has no ideas on getting growth. So much for 14 years of preparation. My main hope is that they don't cause too much permanent damage before they get kicked out for another generation. Ah well. Brian.

[@bendreczko9054]

you do know most of the debt was done under the tories in the last 14 years.

[@NoName-lo9ym]

Given that debt will overtake GDP and will grow faster than GDP, its safe to say that the debt will devour the economy via tax and inflation. The only way to prevent economic collapse is massive spending cuts. End of.

[@Rgbonet]

Weimar Germany had to buy gold... Not a fiat currency.. False example

[@healthygrowth7760]

This guy doesn't know history, knows local gossip😂

[@seanlander9321]

There’s a solution for the government over the channel. France owes treasury hundreds of billions as it hasn’t paid a penny on its sovereign debt since 1931. It’s time that the loan is called in or sold.

[@larryhenry2070]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️

[@nancyflores1787]

I'm 37 and have been looking for ways to be successful, please how??

[@larryhenry2070]

Sure, the investment-advisor that guides me is..

[@larryhenry2070]

Elizabeth stark

[@freddiearthur2151]

Same, I met Elizabeth stark last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Elizabeth stark

[@chesterstanley8487]

Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!

[@andrewclimo5709]

No. As others have said, all that's happened is that as the burden of taxation has moved to the poor, creating a new class of billionaires, so debt has gone up. This is precisely what has happened in every sector, such as the water Industry, which has made millionaires whilst illegally dumping sewage. Look at how home ownership has shifted to a multi house owning elite. Look at the micro economics and you can see why the macro picture looks bleak. Redistribute wealth, and then you redistribute the cost of servicing the debt.

[@ENoob]

the burden of taxation in the UK, according to the ONS, is born almost entirely by those in the top 30% or so of the income distribution, once you take into account the effect of benefits and entitlement spending.

[@nothereandthereanywhere]

@@ENoob I think a part of the problem here is that most people just can barely manage from month to month, many are often on the borderline of poverty. The question in this case would be - why are many so poor, if they don't pay much of tax? The problem is that living in UK is extra expensive. Most of the income is for basics and if people can't afford taxes in the first place, there is something wrong in the approach.

[@sparkymmilarky]

What are you saying? The poor pay virtually no tax. The vast majority of tax comes from high earners. If you are on less than 30k your tax rate is around 10%.

[@andrewwing5086]

In 15 minutes and 31 seconds, you summed up the economy without the political B.S. so concisely. It sheds light on the thorny issue of immigration the ageing population and tax receipts.

[@puppets.and.muppets]

he is very non bias, and the facts are presented simply.

[@andrewwing5086]

@puppets.and.muppets As long as the numbers are peer reviewed, I honestly believe it's as near to truth as Joe public will ever get.

[@fern8580]

Without the NIS, life expectancy in China is 78.2 years versus 80.7 in the UK, or only 3% more life expectancy...

[@jamesadler11]

Come April HMRC is going to receive less money, then labour will panic

[@Ukedc259]

Wealth transfer is getting out of control. Governments MUST invest by adding to their balance sheets or they can forget growth. Private wealth can grow without risk. Therefore government must pick up that responsibility- LIKE IT USED TO!

[@widebleek8138]

So in simple English. The U.K. is in the…🤦‍♀️ Right?

[@tropics8407]

I have no problem with renewable energy but suppressing your oil, gas and coal industry with stupid greenie regulations and mandates are shockingly stupid 🤦‍♂️ what you are not producing in your country, you are importing and bleeding off your lifeblood to other countries ☹️

[@stephenthomas3085]

''stupid greenie regulations'' Like clean air and clean water..? Yeah, we don't need them....!! Wildlife...? Sustainable ecosystems and clean rivers.. it's all bollocks.

[@ontheslide2339]

​@@stephenthomas3085 ..how are those clean rivers coming along...?

[@mbrechenser2]

If MMT works then why are we paying taxes?

[@larslarsen5414]

Love the way he says "government"

[@willyhill7509]

The interest on debt as a percentage of GDP was falling since the mid 80's but took a big hit due to the lockdowns as there was a big slump in output and a big spike in borrowing. At the moment it's about 5% of GDP and 10% of public spending, thats not a big problem if interest rates are low but as interest rates are climbing it could rapidly get out of hand and if it gets to like 20% of public spending there is some big pain to come, there would have to be big increases in taxation and massive spending cuts. I don't mean like another 2 pence on top rate tax payers, more like 10p to everyone or big cuts in welfare payments and pensions.

[@MacksCurley]

Take government spending or as they call it public spending out of GDP. Public spending is increased to improve GDP however that just means higher tax and government debt.

[@14Unow]

Our Fiat currency has been devalued by 100% since 1914. That is the crime. It will get worse and explains why gold has increased to £2200 today from £4 per oz in 1914. That equates to 9.4% increase per year. Our currency won't last that much longer, bond yields will rise, and inflation take off over next 5-10 years.

[@adie2u]

BOE IS NOT OWNED BY THE UK GOVERNMENT !!!!!!!

[@yaseral-saffar7695]

There is a problem with debt that you owe to your own citizens, if it means you need to cut back on expenses elsewhere.

[@herambaanjaneya2041]

Economics Help is talking out of his 🍑 and pouring good money after bad into crap intermittent energy isn't going to make the UK prosperous!

[@zadiponga]

Your videos are excellent. Thank you!

[@deekayunited3445]

Pretty good summary. The household analogy spouted by Maggie and her successors and parroted by the press is utter garbage. As you alluded to, the restriction is always real resources, not 'money'.

[@ahdhudbbh]

Not sure if it's "complete" garbage. The public needs to understand that there is a limit on how much a government can borrow and how things can get out of control if care isn't taken over the public finances.

[@glassmuxxic]

In all seriousness: why would I buy UK debt when the country has made having a future/profitable investment largely illegal? This is not a Labour or Tory problem, though both have contributed to making it worse for short-term political gain.

[@petermeter9890]

It is nonsense, how can the UK own money to itself, it controls its own currency. If the debt was in a foreign currency like euros then it would be problematic. It's an ideology that believes in cutting social services and limits govs to mobilise local resources with local currency to privatise everything

[@deekayunited3445]

@ Technically a government that has its own currency doesn't need to borrow. QE was just just a roundabout way of directly funding things. The only constraint is real resources, not money.

[@healthygrowth7760]

If it's resources and not money? Why is the video basically crying about debt? 😂

[@holaclive]

Yesterdays 15 yr gilt sale was 15 times oversubscribed. Buyers out there

[@nemurerumaboroshi]

Yeah, we are not bankrupt. We are just broke.

[@NickvanBast]

Nice video! I love your analysis! What I would like to add is that QE unavoidably funds and sustains imports because it gives rhe signal that things continue as usual. This in turn can weaken the value of the sterling. I think that the problem is external rather than internal.

[@widebleek8138]

Does not the BoE print the money that it spends?

[@akhileshp4040]

Increasing money supply will inevitably lead to higher inflation. That is just a fact. Next time BoE does QE the Pound will face devaluation. It should be devalued anyways.

[@IainFrame]

Is UK Debt Getting Out of Control? Yes. Yes it is.

[@patbyrneme007]

You notice that the presenter gives us graphs for everything but working age population. This is because it is not true that working age population is falling. Quite the opposite. Both UK population in general and the number of working age is rising with immigration. I cannot believe that this is an honest mistake in this presentation. In fact, it coincides with almost every UK media report on this issue and allows the false narrative of an aging population to keep going.

[@lawLess-fs1qx]

cheers Tejvan. Love your sober approach to economics. A recession would kill inflation thus freeing up the gov to print. Is this the plan?

[@silvafox7719]

Inflation as CPI may have reduced, but anyone renting or with a mortgage has been feeling the effects of CPIH since Liz Truss blew up the economy. We all pay more for housing, food, energy, water, and council tax, leaving us all poorer. Businesses are closing, as the population en masse can't spend as freely as it could, and the rise in costs for them hits them just as hard as households. Unless we move out of the Tory book of fiscal rules, which Starmer and Reeves have adopted the same loop will continue. Neoliberalism has failed the majority of us, while the rich have made massive gains and continue to do so.

[@Ghengiskhansmum]

Truss was a distraction away from the COVID Tory corrupt stripping of the public purse and moving it into their own, friends, family, relatives, business and donors pockets.

[@volcmargray5259]

Tax is what government spends not what it says

[@PropJoe-n8i]

Cheers for that analysis mate

[@eliotgoodfellow7294]

Maybe if we sent more money to Ukraine, that would help. Maybe increase to a 200 year commitment.

[@volcmargray5259]

Maybe UK let go malvins to Argentina

[@stephenthomas3085]

It makes sound economic sense (leaving aside the moral and legal imperatives) to support Ukraine because, if it falls, there will be war in Europe in the not too distant future, starting probably in Latvia and spreading. This will crash the European economy or certainly cause severe long term damage as a conflict would grind on into the long term. The UK would suffer severely from this, it would be a financial disaster in fact.

[@vincentcrowley5196]

​@@stephenthomas3085Maybe the new US President can call his friend Putin and negotiate an end to the war? Ukraine would probably have to swallow losing some land but it would be that or continuous war costing mote lives and all its allies and by extension their citizens ie us, more money for longer.

[@stephenthomas3085]

@@vincentcrowley5196 ''Maybe the new US President can call his friend Putin and negotiate an end to the war?'' I presume that Ukraine will have some kind of say in all this will it or are we contemplating a 1938 Munich Conference type of vibe...?

[@johntheaccountant5594]

Liz Truss was actually probably correct with the budget. However, the city decided they wanted to get rid of her so manipulated the market to force her to resign. The result was a lot of people's pensions were destroyed in value but profits for the boys in the city as usual.

[@TouringTony]

Increase immigration and improve infrastructure to deal with this and the economy will improve

[@alexroc172]

Is it an error to focus on increasing GDP? Could an efficiency drive create significant savings while simultaneously enabling a healthier society?

[@adam7802]

That is exactly why they are all in on AI - which unfortunately is itself foolish, as it's not as good as public perception believes. It's over hyped and extremely expensive, also counter productive to goals of going green.

[@silvafox7719]

@@adam7802 The energy required to run AI on a massive scale, makes it unlikely that investment would arrive in the UK as we have the largest energy bills in Europe.

[@PMMagro]

Uncertainty and insecurity long term do bring a ...risk premium. UK Has more of ths than many other big economies. I find it interstng that Italy with way more problemes with a big debt and aging popualtion pays lower interest rates for her loans than the UK. I do thnk that risk "extra" is high i yoru case and could go down for sure if you show some stable long term things.

[@piccadillyvision3761]

Italy does not fund a fleet of nuclear submarines with nuclear weapons bought from the US, all costing billions

[@liftunmo4928]

Then it is good for the UK economy that 7.8 million people moved there from the EU, most of them of working age. It is another matter that they were attracted there from poorer countries by higher wages. Unfortunately, this means that poorer countries become even poorer in the long run.

[@ABRAHAMGOLDENBERG]

More than half of them have gone back

[@divinasi0n]

So far no mention of the cost of living crisis due to demand for housing greatly outweighing supply, predominantly from millions entering the country, inflation from money printing, importing of energy due to distruction of industry and overregulation, exorbitant taxes, and crony capitalism, all allowed to happen to intentionally transfer wealth from the many to the few so that a ""new order"" can be ushered in under the pretense that the old one "failed". If you keep talking about falling birth rates as if that's what we should be focusing on, nothing will change in this county.

[@scottyfive4319]

Oh look over there it is all their fault!!!!!!!!!!!!!

[@divinasi0n]

​​@@scottyfive4319no its basic supply and demand. If you build say 100,000 properties a year and 1,000,000 people enter the country a year, and to make it worse impose legislature that incentivises your friends to buy those properties and rent them out, what do you think happens to property prices? I'll give you a big hint; it's not Down.

[@scottyfive4319]

@@divinasi0n The problem the UK faces started 50 years ago not 10 or 15 years ago. When Thatcher sold off the lost cost housing i.e. council houses she destroyed the balance between lost cost and self owned. This put up the cost of all housing, half of those sold back in the 1980's are now in the hands of high cost landlords. As for the rise in immigration well since 2020 when we left the EU, what has happened well 2 million from the far east invited in by the Tories, OH yes and before we could and did send 90% of "Boat People" back to France under the Dublin agreement we now have keep them ourselves. All this is self inflicted. I have never voted Tory and would now NOT vote red Tory, different cheeks same arse.

[@malthusXIII-fo3ep]

@@scottyfive4319 There's no council housing left. From 1997, Blair gave it all away to millions of bogus asylum seekers. When that ran out, Labour put them in £1M privately rented houses (not hotels though).

[@damianbutterworth2434]

Aging population but we need more houses?????????

[@chrisfactoryboi]

So you don't think well see inflation spike again if we go through another round of QE?

[@tobyroy336]

There is a massive elephant in the room. I think you need to address the adverse effects of covid and the accumulation of cash by the wealthy. Otherwise it's all just monetary policy noise.

[@theundertaker183]

Privatise universities, save 7% of GDP 200BN. USE the money 💰 to scrap VAT on food and utilities giving everyone a 20% cost of living rise.

[@JasonAtlas]

I do not think that selling off world leading institutions is a good idea.

[@jtl680]

This guy is totally deluded. The BoE doesn't buy bonds directly from the Treasury, only in exceptional circumstances as a temporary measure. With QE, the BoE buys gilts from the open market with the intention of artificially creating excess demand for gilts so as to reduce their yield and thus the interest rate nationally. They do this to encourage businesses and asset holders to borrow and invest. Its not like some magic money tree that this guy wants to you believe.

[@DaveATKIN]

Ah the elephant in the room, being the seeming inability to tax the super-rich and mega-corps properly. Not to mention the looming unprecedented tech/stock market bubble set to burst in Trump's face.

[@withoutwroeirs]

Is money creation an option when the country is near bankrupt?

[@marktapley7571]

Money creation (currency depreciation) just causes more Mal investment and distortion of the real economy. The solution. is to drastically cut the size and scope of government (which produces nothing) and allow the free market to grow needed capital for investment which produces jobs.

[@withoutwroeirs]

@@marktapley7571 Indeed... even back in 2008 as public money was used to bail out banks, imagine if capitalism was allowed prevail with that money instead spent on essential services and infrastructure. The country might be in a far different place today.

[@Carl-hs420a]

"Getting" It GOT out of control when we hit the first billion in debt

[@bn_kf]

Can you do a video on MMT? What about those claims that deficits/debt don’t matter, it’s all a misunderstanding

[@lukeskirenko]

I've been trying to wrap my head around such claims for years. Seems to me we have very crude systems in place that don't really work, i.e. it's true that forcing governments to borrow to inject more money into the economy prevents runaway spending, but at the same time it creates entirely unnecessary debts (if it were the case that the new money was necessary to facilitate new economic activity). The bit that I don't understand about MMT is how in practical terms they aim to keep the central bank or government free from corruption such that it acts as a benevolent and wise (god-like) overseer of the money supply.

[@healthygrowth7760]

It's not that debt doesn't matter. But you need to understand that government debt liability is an asset to the population. Government debt is not debt you pay, It's an accounting record of how much money is out in the economy. So when u see Government debt goes up, it means citizens have put more currency in circulation for economic activities. Debt=money, morde debt means more money, doesn't mean you have to pay back anyone

[@healthygrowth7760]

​@lukeskirenko you want mmt to say how to end corruption? 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂

[@cobbler40]

No plan to pay off the loan ?

[@JamieEnglish-x3x]

The whole world is bankrupt sadly

[@PaulStratford-vn8ed]

lower birthrates NOT IN SOME DEMOGRAPICS ..who don't pay in buddy

[@dasdasdatics420]

BEWARE OF FALSE ALARMS. Most of this debt is Tory related and not labour

[@billy4072]

old enought to remember 2010??? lol. 1910 surely. you absolute hero.

[@joea4234]

… and let’s not mention Brexit causing yet another shock to the economy…

[@marcocarlson1693]

Well, you say the U.K. Debt is not 'uniquely' high. Maybe not Uniquely, but it is very high. You chose to cite Govt. Debt, but Private Household Debt, which is more pertinent to the population is at more than $3.2 Trillion(!). This is an All time high. You then compared the U.K. Debt to Italy, who has the Lowest Private Debt of Any major country in the world. So actually the U.K. has Far more total Debt than does Italy, which you used to imply that the U.K's Debt wasn't so bad. Actually it is. That is why their bond yields are so very high, just like the U.S., which also has an enormous Debt issue. Of the G7, the U.K. and U.S. pay the highest interest on their debts, by Far.

[@Stoptheinvasion-y2d]

Reeves should watch this. She may then understand basic economics.

[@m0o0n0i0r]

you forget many were willing to pay higher taxes after the wars becasue of the national interest with fathers sons brothers and sisters fighting. you do not have this now hence why the rich and skilled are leaving the uk. It is odd that you compare national debt after world wars with the currenct national debt in peace time. The UK has specific circumstances based on how the UK got out of 2008 financial crises. QE and ZIRP was meant to stimulate the economy. All it did was prevent zombie businesses from going bankrupt hence why productivit flatlined since 2008. No real investment happened in the UK. Definition of instanity is doing the same thing over and over and expecting a different a result. Government borrowing more and doing debt monetisation will crash the pound. With the pound already dropping while gilt yeilds rise is the problem.

[@puppets.and.muppets]

the recent huge oil finds of the north falklands basin have the potential to bring the uk and argentina out of their current problems, and produce a surplus.

[@MyKharli]

In a climate catastrophe exceeding worse case projections , what vision of the future is there ?

[@leftmodernist5210]

Companies prefer to invest in oil which can be recovered quickly and cheaply. Offshore oil in the Falklands sounds like it would need sustained high oil prices to be worth investing in.

[@Brian_Equator]

@@MyKharli Don't believe the scare stories. The Polar bears are fine, the great barrier reef is fine. The Antarctic sea ice is about average for the time of year. Your chances of dying in a climate disaster is about 100x less than in 1900. I could go on for a while. I understand that many scientists keep popping up and telling you the world is on fire, the sea will flood your house etc etc. Look out of your window, it isn't. Brian.

[@puppets.and.muppets]

@@leftmodernist5210 yes. its in a very deep basin, but the tech is getting closer and closer. deep water extraction is becoming viable. the size of the field is estimated to be 4x bigger than the north sea.

[@stephenthomas3085]

Some future for our grand children and great grand children then...!

[@pradyumnanayak9844]

I need an answer for my question ❓ Question is what happened to the looted money from India ❓❓

[@stephenthomas3085]

The resources and wealth stolen from India during Georgian times, along with wealth created from slavery and the government supported arms trade were used to fuel the UK's industrial revolution and the formation of a vast economy and international power.

[@pradyumnanayak9844]

@stephenthomas3085 Amen.

[@davidwasilewski]

Massive inflation coming. Watch house prices, gold etc go to the moon, never mind energy costs and food. Buckle up!

[@hclee921]

Thanks!

[@economicshelp]

thanks

[@ralffig3297]

Yes. Then this country will make the changes needed. NHS, net zero etc all will be gone.

[@andrewclimo5709]

And so will the economy. As the rate money flows slows, so the economy deteriorates.

[@Enzo012]

Most people are old enough to remember 2010?

[@BeeblebroxTheThird]

2010? That was yesterday...2000-2003?, 1990-1995?, 1984? The kids of today...😊

[@Enzo012]

@@BeeblebroxTheThird 2000 is probably about reasonable to say at a push as you'd have to be well over 25 to remember it at least. You don't want some 20 year old punk telling you they're old enough to remember 2010.

[@healthygrowth7760]

The government sets the interest rates on its own debt, debt which it pays in its own currency, and currency that it prints..... you dont know what you are talking about 😂😂😂😂😂

[@CD-pm9kc]

Soon to be 200% and parity with the USD.

[@pareshpatel7100]

Tax the billionaires more. All the QE money went there.😊

[@stephenthomas3085]

QE certainly contributed to asset bubbles, especially property which supercharged our housing crisis.