>Shortly after becoming prime minister in 2007, Gordon Brown crowed that Britain had enjoyed “the longest uninterrupted period of economic growth in the history of our country”. In polling by Gallup that year, with the global financial crisis about to begin, 53% of respondents said that their lives were improving. This year just 28% agreed that life was getting better. Faith in government has also taken a hit, particularly since the Brexit vote in 2016.
>There are some immediate explanations for this sense of disenchantment: from strikes to double-digit inflation (of 10.7% year on year in November, a slight easing on the previous month). And over the past 15 years much of the West has suffered from similar maladies to Britain: high inequality, slowing economic growth and bouts of political instability. Some big, rich countries, such as Italy and Japan, have fared worse over that period on measures like real growth in median incomes.
>But a closer look at the data reveals that there are specific reasons for Britons to worry. The country has historically tried to position itself as a bridge between Europe and America. With that in mind The Economist has benchmarked Britain against a group of other sizeable English-speaking countries—Australia, Canada and the United States—and against France and Germany, the two biggest continental European economies. Although there is no single all-encompassing measure of national well-being, the changes in Britain since 2007 rank it at or near the bottom of this group on a wide variety of economic indicators.
>On a per-person basis, Britain’s economy has grown by 7% in real terms since 2007. That is just ahead of Canada and France, both at 6%, but behind America, Australia and Germany, which sit at 13-16%. Unfortunately, much of Britain’s meagre growth has come not from working more efficiently but rather from working more. Over the past 15 years British labour productivity has climbed by just 4%, slightly behind France’s 6% and far worse than the other countries’ double-digit gains.
>Instead of combining Europe’s and America’s strengths, Britain appears to be saddled with the weaknesses of both—plodding growth and entrenched inequality. At the start of the financial crisis, after accounting for differences in the cost of living in each country, the median household income in Britain was on par with that of Germany. Meanwhile, earnings for relatively poor people—those in the tenth percentile of the income distribution—were roughly similar in Britain and America.
>Today, things look far grimmer: Britain comes last by a hefty margin at both the tenth and 50th percentiles. Britain’s geographic disparities are also particularly pronounced. Although the concentration of prosperity in “superstar cities” is widespread, Britain is unusual in having such a dominant mega-city. London and its environs (ie, the South East and the East of England) make up 37% of Britain’s population but 47% of its gdp.
>Outside the economic realm, Britain’s record is mixed rather than poor. The changes in its death rate since the emergence of covid-19, and in its life expectancy for 65-year-olds since 2007, are better than America’s but worse than the other countries’. Education is a relative bright spot. In international pisa tests of maths, science and reading skills among 15-year-olds, Britain ranked fourth among the six countries in 2007 but now comes second to Canada. The country maintains a disproportionately large share of highly rated universities. And the share of British respondents to Gallup polls who say they would like to emigrate, though still the highest in the group, has fallen to 20%, from 33% in 2007. Given Britain’s underwhelming economy and the darkening mood, insularity may help explain that.
Well we had the global financial crisis, and then the Tories
At last – someone is looking at GDP per capita (person) as a measure of economic growth. A much better measurement than just GDP as more people buy more products (and possibly why governments pay lip service to immigration).
Our GDP per capita is piss poor.
Although, there is a discussion to be had about whether economic growth can be infinite. Or indeed, is good for the planet.
Yeah, but the UK is better at turning on the QE fire hose. We started that game! Our rules so we win
daft to compare it to 2007. that was the top of the bubble, and youre easily going to rack up a few percentage points difference due to different countries peaking at different times. also, i assume our bubble was bigger than most other countries, so our subsequent performance will look worse. funnily enough, 2000 would probably be a good starting point, most economies would have been in a neutral growth phase. (right now isnt really a good end point either, with all the dramatic upheavals of late, but you cant do much about that now. the first quarter century should be a good point to take stock.)
Not surprising for a country that’s mostly uneducated fat old people
Seems we let self interest and corruption in the door for the good of the few at the detriment to the many. We’re a selfish nation programmed to hate and fear others getting a free hand out. And it’s really messed us up. I think its not something we will pull out of and will now be more in like with Spain or Italy fighting corruption and incompetence on political level rather than a big super power connected country.
Which really goes against the idea that austerity is over but could return. America invested heavily in itself during the financial crisis and it worked for them,we went the opposite direction and it only worked for the rich.
90% of UK issues on growth come down to the following
Town and County Planning Act making housing and infrastructure impossible
The £50k income loss of Child Benefit + £100-125k Super Marginal Tax, reducing incentive to work more for higher earners
Rent seeking pensioners voting for the Triple Lock
Transport polices and aversion to investment of alternative to cars
Fix these handful of issues and most things sort themself out in the medium term
9 comments
>Shortly after becoming prime minister in 2007, Gordon Brown crowed that Britain had enjoyed “the longest uninterrupted period of economic growth in the history of our country”. In polling by Gallup that year, with the global financial crisis about to begin, 53% of respondents said that their lives were improving. This year just 28% agreed that life was getting better. Faith in government has also taken a hit, particularly since the Brexit vote in 2016.
>There are some immediate explanations for this sense of disenchantment: from strikes to double-digit inflation (of 10.7% year on year in November, a slight easing on the previous month). And over the past 15 years much of the West has suffered from similar maladies to Britain: high inequality, slowing economic growth and bouts of political instability. Some big, rich countries, such as Italy and Japan, have fared worse over that period on measures like real growth in median incomes.
>But a closer look at the data reveals that there are specific reasons for Britons to worry. The country has historically tried to position itself as a bridge between Europe and America. With that in mind The Economist has benchmarked Britain against a group of other sizeable English-speaking countries—Australia, Canada and the United States—and against France and Germany, the two biggest continental European economies. Although there is no single all-encompassing measure of national well-being, the changes in Britain since 2007 rank it at or near the bottom of this group on a wide variety of economic indicators.
>On a per-person basis, Britain’s economy has grown by 7% in real terms since 2007. That is just ahead of Canada and France, both at 6%, but behind America, Australia and Germany, which sit at 13-16%. Unfortunately, much of Britain’s meagre growth has come not from working more efficiently but rather from working more. Over the past 15 years British labour productivity has climbed by just 4%, slightly behind France’s 6% and far worse than the other countries’ double-digit gains.
>Instead of combining Europe’s and America’s strengths, Britain appears to be saddled with the weaknesses of both—plodding growth and entrenched inequality. At the start of the financial crisis, after accounting for differences in the cost of living in each country, the median household income in Britain was on par with that of Germany. Meanwhile, earnings for relatively poor people—those in the tenth percentile of the income distribution—were roughly similar in Britain and America.
>Today, things look far grimmer: Britain comes last by a hefty margin at both the tenth and 50th percentiles. Britain’s geographic disparities are also particularly pronounced. Although the concentration of prosperity in “superstar cities” is widespread, Britain is unusual in having such a dominant mega-city. London and its environs (ie, the South East and the East of England) make up 37% of Britain’s population but 47% of its gdp.
>Outside the economic realm, Britain’s record is mixed rather than poor. The changes in its death rate since the emergence of covid-19, and in its life expectancy for 65-year-olds since 2007, are better than America’s but worse than the other countries’. Education is a relative bright spot. In international pisa tests of maths, science and reading skills among 15-year-olds, Britain ranked fourth among the six countries in 2007 but now comes second to Canada. The country maintains a disproportionately large share of highly rated universities. And the share of British respondents to Gallup polls who say they would like to emigrate, though still the highest in the group, has fallen to 20%, from 33% in 2007. Given Britain’s underwhelming economy and the darkening mood, insularity may help explain that.
Well we had the global financial crisis, and then the Tories
At last – someone is looking at GDP per capita (person) as a measure of economic growth. A much better measurement than just GDP as more people buy more products (and possibly why governments pay lip service to immigration).
Our GDP per capita is piss poor.
Although, there is a discussion to be had about whether economic growth can be infinite. Or indeed, is good for the planet.
Yeah, but the UK is better at turning on the QE fire hose. We started that game! Our rules so we win
daft to compare it to 2007. that was the top of the bubble, and youre easily going to rack up a few percentage points difference due to different countries peaking at different times. also, i assume our bubble was bigger than most other countries, so our subsequent performance will look worse. funnily enough, 2000 would probably be a good starting point, most economies would have been in a neutral growth phase. (right now isnt really a good end point either, with all the dramatic upheavals of late, but you cant do much about that now. the first quarter century should be a good point to take stock.)
Not surprising for a country that’s mostly uneducated fat old people
Seems we let self interest and corruption in the door for the good of the few at the detriment to the many. We’re a selfish nation programmed to hate and fear others getting a free hand out. And it’s really messed us up. I think its not something we will pull out of and will now be more in like with Spain or Italy fighting corruption and incompetence on political level rather than a big super power connected country.
Which really goes against the idea that austerity is over but could return. America invested heavily in itself during the financial crisis and it worked for them,we went the opposite direction and it only worked for the rich.
90% of UK issues on growth come down to the following
Town and County Planning Act making housing and infrastructure impossible
The £50k income loss of Child Benefit + £100-125k Super Marginal Tax, reducing incentive to work more for higher earners
Rent seeking pensioners voting for the Triple Lock
Transport polices and aversion to investment of alternative to cars
Fix these handful of issues and most things sort themself out in the medium term