@koosgijsman because in those last 7 years tory government has invited over 2 million new immigrants to the population, whilst only building 400,000 new houses, no new roads. No infrastructure etc. Thus expediting the decay and overcrowding the place. Vote reform
@@Fluid-Druid You borrowed far less money back then. A higher percentage of a smaller amount doesn’t necessarily mean more than a smaller percentage of a higher amount. Simple maths really.
@Fluid-Druid complete waffle, paying 15% on a smaller shorter term loan hurts nowhere near as much as 7% on a massive 35 year loan. Whip out an accumulative percentage calc and go see the difference yourself, put in what you paid for your home back then on that percentage and how long you paid that and compare it to what someone paying average price and average percentage pays now. It's not even close
@@julianphillips1010 people lived much more basic lives back then. And things were more expensive. See contestants on game shows get excited over winning a microwave or dish washer.
In my experience in recent years now: if you aren't Pregnant, Elderly, an Infant or in need of A&E critical care (RTA's Blue lights etc): then there isnt really an NHS anymore. Working age adults have to pay to get anything done within years of needing it or any sort of diagnosis for longterm health.
Sometimes not even being in a serious state is enough to get you into A&E quickly. I helped out a young guy last year who had passed out unconscious from some very serious alcohol poisoning, his friends were freaking out because he was clearly in an extremely bad state (he was completely floppy & unconscious, vomit & bile slowly was pooling out of his mouth, he had an extremely cold body and was barely breathing) but the queue to get an ambulance was over 1hr long and the caller wouldn't move him up the queue unless he actually stopped breathing (or "lips turned blue"), so they advised his friends to moniter his breathing. After helping them to get their friend into a proper recovery position, cushioning his head against the freezing cold concrete (the poor dude had collapsed in a random doorway wearing nothing but a pair of jeans & a thin t-shirt soaked in vomit on a freezing cold Winters night) and getting his friends to pile some of their jackets onto him and start rubbing him to warm his body up (as he was at genuine risk of hypothermia), I ended up persuading them to take him in a taxi to the hospital or to a responsible parents house because leaving him out in the freezing cold like that for an 1hr was guaranteed going to make his condition worse. His friends kept on asking me if I was a nurse and were convinced that I was hiding some secret medical training even when I said I wasn't because apparently I helped them out more than anyone (even the 999 operator) had. I am naturally a very calm, collected & straightforward kind of person in these situations but I have no training and I've simply read up on how to deal with a few types of situations (i.e. what to do if someone gets stabbed, has alcohol poisoning or ends up in the river Etc) because I'd rather be able to do something to help in these kinds of situations than nothing at all. Ambulance services are super strained ATM and sometimes its the non-medical people who are first on a scene who can make the biggest difference to whether someone makes it or not.
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I got routine blood tests very easily and without any hassle
Yeah definitely agreed. I do strongly agree with that. But I wanted to share some positivity for a change after my recent positive experience with the NHS. Recently went to the GP after having a persistent cough for 5 weeks. Got booked in for an xray and got it the same day. Results within a week. Was very shocked myself after whats been going on the last few years +
@@ComputeCrashers It varies a lot, different departments are experiencing different levels of problems. Whilst I was once able to get an x-ray done pretty quickly on some health issues where cancer was a possible suspect (thankfully it turned out to just be a couple of very manageable tumours), another guy I knew ended up having to wait many months for tests on some symptoms that later turned out to be an aggressive type of cancer. The thing that was really heartbreaking was that if he'd only been seen earlier, then the cancer may have been caught before it became terminal. He was in his 50's and a dear friend of my dad's side of the family and once everyone found out that had terminal cancer, a number of older relatives came together to give him enough money to pay off the remainder his mortgage so that he could retire early. It was so sad because the dude's life had been really looking up before his health took a turn for the worse (he'd found a long-term girlfriend and was planning on proposing to her), but sometimes life is just like that. I really hope that the NHS can be saved because if it goes private we will return back to a Victorian era where people die from treatable diseases and poor health ends up dooming people to dire poverty or homelessness. I've been to America a lot over the years and the situation sucks out there, absolutely tons of the people who are homeless on the streets (and/or cannot get off the streets) are so because they've got psychological or physical health problems that they couldn't afford to treat and which ended up putting them out of work & home. The costs of dealing with the long-term consequences of problems like child poverty, homelessness and drug addiction Etc costs far more than it does to prevent these things from occurring in the 1st place, so we must protect our services at all costs.
The U.K. is on an unavoidable downward spiral as no political party is prepared to take the hard decisions and those who claim they will are heading in the wrong direction namely further towards authoritarianism. Luckily I’m 70 and have about 10 years left on this rock so I’m only here out of morbid interest.
I am about the same age, and have the right to live and work in the UK if I wished, as well as in another three western countries. But, tbh why should I live in the UK, given my standard of living would decrease there compared with the others?
Let me paint a picture here I’m married in my early 30’s stuck in the rental trap. The generation before me had lower taxes better services, cheaper housing, better wages, all we’ve done in this county for years is kick it down the garden path and now it’s finally come to light the younger generation just do not have the ability to support what was given before anymore. We have no disposable income we don’t have final salary pensions, we could never dream of retiring at 55/60 or even 75 at this rate. The days of owning a house are seemingly slipping away, I’ve never used the NHS well maybe a GP appointment once every few years, the system is broken full stop.
We were paying 30% income tax back in the 70s, young man. Plus NI, of course. While vat has gone up, income tax has never been lower than it is now. Oh, and the NHS certainly wasn’t better in our day. Even in the 80s if you got seriously ill in your 60s you were written off as being ‘old anyway’. We had better wages yes, largely because we did apprenticeships and degrees that employers wanted. Too many now do not.
Income tax yes, how much was the average house price compared to income? What was the retirement age? Did company pension schemes include final salaries? Was going tot the supermarket and utilities equating to what it is now?
@@alimack5489 I addressed the points in your post which were factually wrong, that’s all. And the fact is, with medical advances, the NHS is better now than it used to be so I’m not sure what your point is.
@@hughjohns9110 average rent compared to income 1980 5.7% now it’s 38.7% . Retirement age 1980’s 60/62. House price compared to income 1980’s 5x income, it’s now 10x’s income. For us to compare an income of 1980’s the average salary would have to be 70/78k to be comparable now.
Good analysis but unfortunately missed a big point relating to wealth inequality. Would’ve loved if you included it on your analysis. Thank you for your videos.
The UK won't build the houses while NIMBYs on the one hand continues to block social housing developments, while those heavily invested in housing like to keep the scarcity of supply to artificially boost the value of their assets (which should be people's homes, not boosting asset prices!)
@CommonPurpose1 ironic your name is common purpose but you dont want to sacrifice for the greater betterment of the country. To get where we need to be the tree needs to be well and truly shaking rerooted and replanted in a new space and era.
That's because most housing developments are currently going up on greenfield sites. If it weren't for the NIMBYS there would be no green spaces anywhere. The demand for social housing is being driven by population growth, and 80% of UK population growth is driven by immigration
I am no economist but I clearly see the massive, and accelerating, transition of wealth from ordinary people to the Super Wealthy. I would like to see you research that with your "Economist" hat on and quantify that.
Seconded. Too often I see complaints about the baby boomers having emptied the pot for future generations whereas there has been a steady flow of wealth upwards and to the big corporations. Divide and rule.
Yeah. First cut of my pay check isn't to the government, it's to the company's shareholders. How many people make as much money for themselves as they make for someone else? Then how many pay as much VAT as they pay to their landlord, the shop's landlord, and the supermarket's shareholders? And where is the tax money ending up when services are privatised, lobbies and tory donors get contracts and the state owns net zero of the assets? Money's not trickled down, only funnelled upwards.
Simple. Ever more desperate people scrambling for less and less affordable housing helps to make them hungrier (in both senses of the word) and helps to drive up the costs of the properties they're all forced to fight each other for. It's social and financial engineering at its worst and ugliest and unfortunately we have long had a constituency in the UK that's long become addicted to the ability to make money from money in their sleep.
Thank you for your continued analysis and observation which seems quite unbiased! Its good to watch this and cut through the lies of the 2 political parties. Because of the fundamental economic issues of the UK I now work remotely and live in a country with much lower cost of living! The UK is truly doomed, I cant see a way forward sadly.
There will be a way if politicians work together and stop making false promises... but the amount of time it's going to take even if that happened to fix this country is not going to be worth waiting for if you ask me.
@@adam7802 Yes countries can and will enter a period of extended econmoic stagnation or decline for 20+ years until something changes. See Spain, Japan, Argentina etc...
UK people are begrudgingly bearing the brunt of lingering austerity measures following the aftermath of the financial crash. This intertwined with Brexit have stunted the UK's economic growth in the last 15 years of Tory hegemony. Here in Fort Worth Texas inflation has been quite rampant but at least there were pay rises and housing is not too out of reach of a medium household.
It's not just that. The issue the UK has had is: - we imported millions of people who push up housing costs and push down salaries. The lower salaries don't cover the tax burden of the new people - The only investment went into housing, instead of starting productive companies. Any companies that do exist have to pay vast amount of money for property that the barrier to start a company is much lower - The UK has a vast unproductive class of people on benefits. These people provide zero to the UK, yet cost a fortune to maintain and increases crime. - The politicians (of all types) have asset stripped the UK and sold off the family silver (school fields, industries etc) to cover short term costs but have run out of family silver to sell. - The cost of living is so high that nobody is having kids, which means there isn't the tax base to draw from.
@@ChristopherVickers It's a vicious cycle. 1) Brits aren't having kids because the cost of living is so high, a large portion of which is the out-of-control housing market. 2) People a not insignificant chunk of the working age population are dependent on low-pay, low-security employment and therefore are also dependent on state subsidisation (housing and employment benefits). (issue 1 and 2 are due in no small part to banks lending huge amounts of money for house purchases whilst simultaneously being reluctant to lend to businesses). 3) Because of issue 1, the number of people in productive employment is falling as a percentage of total population, meaning less available tax revenue/higher social support expenditure (NHS and state pensions). 4) Because of the combined impact of issue 1 and 3, the economy and state finances are dependent on inflows of working age people from overseas, however some groups of newcomers end up costing public finances far more than they contribute. 5) Because of issue 1, 2 and 4, house prices remain inflated well beyond average wages and continue to grow at a rate much faster than earnings growth. This causes a low growth/low productivity economy in which work does not not pay and the asset rich get richer and richer within asset classes that have preferential tax treatment which allow avoidance. This has a hoover effect via which those who are already asset wealthy are able to obtain and retain more and more essential assets like homes (see rental property partnerships) and continue to extract ever growing rents from the productive non-homeowning population. From what I can see, the main issue that is really hamstringing the UK economy is the housing market. Solve that and you solve the low reproduction issue, the cost of living issue and a big chunk of social spending. Additionally, all that money being spent on productive endeavours may actually be just the thing needed to kick-start the economy into a period of notable growth.
@@benghiskahn3673 These problems can be solved by our government but would think the Treasury is probably blocking money being spent on building more social housing etc and is just relying on a quick fix of allowing more immigration. Migrants coming here to do low level jobs is a ridiculous situation, they will just join the rental sector pushing rents up even further and then need housing benefit to help pay these inflated rents while paying small amounts of income tax in return. I can only think that the Conservatives have been battered by Covid, Brexit, Ukraine and not been able to devote time to solving these issues.
It’s almost like it has been the incompetence of various UK governments and not the fault of the EU, that the UK has done so incredibly bad compared to the rest of the developed nations. Who would have thought?!
Chronic underinvestment in services, low productivity, regional inequality and aging population are the main ones I believe. Brexit definitely hasn't helped but frankly these underlying issues don't have much to do with EU membership.
This is the best economics content I've found on TH-cam, superbly presented and you're very charismatic. Length is perfect and topics are usually exactly what I'm looking for. However I think the channel name is terrible, it's too generic. Just some hopefully constructive criticism because you need to be heard by as many as possible :)
Reducing immigration - at least in the short term, until housing catches up to unmet demand- should be a priority for the next government. So should training more native Brits in health care fields.
I think you need to look at the trade-offs section. Remember that the vacancies for NHS and Social Care are still in their tens of thousands. A nurse takes 3 years to train. A Doctor takes 7. What do we do in the meantime? Where are the British people willing to spend 3 years training as a nurse with 12 hour shifts, and low pay. What do we do in the meantime? Let's be honest here. All those wonderful tax cuts we had to be paid for by cutting back public spending, which includes the NHS. The UK workforce is shrinking because it is ageing, and the birth rate has been below replacement rate for decades. It is actually too late to be particular where your health and social care staff come from, as they are needed now. Not in 3 years and not in 7, but now. That's why private sector contractors are waiting for the NHS and social care to collapse, whilst they are bleeding it dry. They want it broken enough so people will pay health insurance. You can cut immigration all you like, but it's too late to stop the rot. It's gone on too long. You see, all the problems we have have been created to make wealthy people even more money. That means they want a weaker state, with little or no public services, and to pay little or no tax. And we fell for that. We shortsighted lay agreed to tax cuts, not thinking it would literally come back to bite us. It has. Child poverty has returned with a vengeance. Young people are finding it impossible to start a family in a home of there own without the Bank of Mum and Dad. And intergenerational wealth is shrinking too. So, we need immigration just to clean up the mess left behind by the direction our society took over 4 decades ago. And it will take decades to repair it if we have the luck to do so. And we will need it. And it might mean that we will have to look at our priorities as a society, because our problems in the present come from those priorities we set in the past. And if we don't like dealing with these current problems, we need to take an honest and realistic look at the priorities that created them. The problems were created by immigration. Immigration needs are a symptom, not the cause. The cause is that we believed stuff that wasn't true. Tax cuts were free money. No, they weren't. Every tax cut meant a cut in public services each and every time. And Austerity just accelerated that decline. Now there's a quiet crisis going on because we're being gaslighted each and every day. It's saddening to see how much it's hurting us. We gone backwards in life expectancy. Diseases of deprivation have returned, and medicine and treatment is being rationed. People are having trouble getting their prescriptions filled. And the elderly... With undetmanned social care, there suffering too. We've messed up, by allowing it to happen. And really, we need to decide who we are and what kind of country we want to be. We've got to be honest about it, because there is no perfect solution, and we can't have everything at the same time.
@@CuriousCrow-mp4cx I first gave you a thumb up but realized reading beyond line 4 you repeated yourself unnecessary for 15 lines. You can edit I guess ;-)
A reduction in immigration is definitely needed. I hate the fact that immigration is such a taboo topic nowadays. Controlled migration that helps the country is great and valuable. But not what we've had in the last few years. And the effects of mass migration are never mentioned
@@travellingtom6091 no it means an American system where everything costs twice as much and those that can least afford it don't get medical cover the less you earn the less your life is worth
@@travellingtom6091 Why do we never run out of bread? Because it is easy to become a baker, because the State does not regulate this profession: do bakers kill customers? the poor can't buy bread? The enemy is the looters from NHS ,who pass laws to empty the pockets of poor, sick people.
@@IMO1964 Yeah, this is a danger and I accept your point. We would need competition in the market and I'm unsure how the less well off would be funded. The trouble is that the NHS is such a mess, throwing money at it would be pointless. Difficult one isn't it.
Tax avoidance is entirely legal as it should be. What you are asking for is quite impossible. Any increase in taxes will be pushed onto and paid for by the population. What we are unable to afford.
@@sirianofmorley no one is saying every type of tax but close the loop holes. This offshore bullshit has got ridiculous. If you own anything in the UK then you own it here not in some structure in the Cayman Islands that is tax exempt. We need to start getting tough on the billionaires that hide their money in these stupid opaque structures. There should be a national task force set up to specifically deal with it.
@@DatFwadyou're conflating tax evasion and avoidance. You're talking about tax evasion which is already illegal. What you suggest is noble to increase tax receipts but any change to the tax rules like that will be passed onto the population (as you see with VAT and your chocolate bar becoming smaller) and then you will get people complaining about salaries and cost of living crisis. Political suicide to make this change.
@@freedomwatch3991 I agree they are but it’s the only way your get the services without paying a fortune for them. Most people in the uk pay little to no tax. Ie people on minimum wage. But get the same services as the people who do pay in. If they were in the USA or some other countries most of the people would get no benefits or access to health care. You can complain in the uk but atleast if you get sick or break your hip your get a op or treated the same day and your come out with no bill in the USA you would be bankrupt
@@teelo523 ie 20% of your taxes goes to health ie the nhs and they spend your money 30% to the department of work and pensions and they spend the money on benefits and pensions you can check the ons or your government gateway app to see where the rest goes.
I feel like in the UK the conversation is bogged down in same old cliches and there really isn't a vision in how to move the country forward into the future. All the conversation seems to be about shifting numbers around, lower immigration, higher immigration, tax takes, low productivity etc. What there isn't is a discussion about how these problems stem fundamentally from historic policies and how to change the status quo. The housing crisis per example, for decades we have not been building enough houses, the planning system need substantial reform from how it is now as it's stifling both business and individuals. Likewise the NHS, the policy seems to be to just throw money at it and hope problems go away, rather than looking if prophylactics and operational reforms could save money, increase junior doctor's pay but severely limit the use of external agency staff for example. Infrastructure in this country is in an awful state of disinvestment, railways are basically still Victorian, sewage spilled into rivers and the sea, over the long term this lack of investment creates barriers to growth etc etc. Some councils are now spending 50% of their tax take on emergency accommodation.
NHS:My Views have completely changed as my eyes have been completely opened to what Healthcare has become and how the medical profession has surrendered completely the traditional practice of medicine . doctors behave in a similar way in the United States,UK,France, you have huge physician lobbying power of various different Specialties some Specialties are obviously more powerful than others but it's always about trying to maintain maximum compensation how will any doctor maintain a certain salary preferably increase it that is their number one goal and collecting as as much money as possible within their coffers .
why uk pays housing benefit ??? other countries do not have it , there is no housing benefit in Poland , you go to work to pay rent or live with your parents , travel to bigger town or abroad to save money to buy house . Why people in uk do not do the same?
Haha, look at all these serious people investing in different projects, while weve already signed up for UNIMANTIC PROTOCOL and are waiting for millions!
The fundamental problem is that politicians can continue to make unrealistic promises without fear of any real consequences. At the same time, voters fail to hold politicians accountable because of their lack of understanding or critical thinking about economic issues. So long as this carries on, the gap between political rhetoric and economic reality will continue to widen. Real problems like inequality, job insecurity, and economic instability will persist or worsen. Politicians claim to have solutions and control over the economy, but this is like the story of the "Emporer's new clothes." They make grand promises about economic growth and prosperity based on outdated economic models from the 19th century and debunked ideologies from middle of the 20th century while the lobbyists and interest groups cheer them on out of self-serving interest. The media also goes along with the charade, either out of sensationalism or self-interest. The public is fooled by the spectacle or too afraid to speak up. And no one notices or will admit that the Emporer (the politicians and economic pundits) is not wearing any clothes.
Interesting that the trade off for immigration you gave was less workers. It is also less strain on public services and housing stock, Immigration has created capital shallowing (along with Brexit), you should do a video on that
It really depends on the individual immigrants that come. Are they a net cost or a net credit to public finances? If we have too many of the former then we're just importing more of a burden from external sources. But we should not have any issue with immigrants of the latter category who go on to work in essential services. I think the issue is that we haven't really been choosy for far too long and as such there are large groups of new arrivals who either do not or are simply unable to actually do anything productive within our economy because they do not have the skills or inclination to do so. To my mind, such people shouldn't be in the country at all and should be obliged to return to their country of origin if they are not able to meet certain criteria within a certain period from arrival.
You're right, that could be a problem. But does competition in the private sector guarantee efficiency? Is the private sector free of corruption? Why does the American health system cost twice that of the UK system? (and that's not accounting for the millions that have no medical cover whatsoever). Whether you pay for health care via taxation or via private health premiums, you still gotta pay! And private may be significantly more expensive. What type of society do we want in the UK anyway? I would personally prefer a society where I don't have to see a business manager before I see a doctor!
Could you do an episode showing whether the large amount of US owned companies affects our ability to grow. I just read Vassell State and it's surprising to see how deep US ownership runs in every aspect of our lives.
Uk debt to GDP is 98.3% and growing. Payment of just the interest on the debt is now the UK's second largest expenditure after the health service. According to the BoE inflation calculator, the pound has lost 24% of its purchasing power since 2019. It's a similar story across much of the West. The US national debt is rising by 1 trillion dollars every 100 days! At some point, it feels like one of the countries in the house of cards has to fold.
Its an economic reality that peoples wants are unlimited... The question is how much should the state and how much should individuals keep... Beyond a certain level of tax there is no incentive to work or invest
The problem we seem to have is that everybody wants the same level of service or better for health, infrastructure, housing, etc. but they believe that somehow the money will just appear as if by magic. What really needs to happen is the country needs to wake up and get used to paying more tax and the loop holes that allow the super wealthy to pay less tax than the average working person needs to be shut tight! And government fiscal oversight needs to improve.
This has been a choice. Let's not forget that it is the public that has voted for far right neoliberalism with its austerity, public services decline, lower taxes for the rich, QE for the rich with surging wealth inequality, a surge in house prices and a Wild West lettings market, pitiful levels of investment, immigration on steroids. And on top of this they then gave us Brexit with its 5% drop in GDP. Neoliberalism doesn't work and the sooner we wake up to that fact the better.
I agree. People voted for this time and time again so they can't complain now. I'll be emigrating to south east Asia soon thank goodness. Low cost of living where the GBP goes a very long way.
I'm sorry, but are you including the "far right Neo Liberalism" of Tony Blair and Gordon Brown in this error strewn statement? It is ridiculous levels of borrowing by political parties of ALL leanings that has put the UK in the position that it finds itself in. When one of your top 5 economic costs is servicing the £2 trillion + national debt then you should begin to realise that it's actually not austerity that has got us where we are now, but rather spending money that we didn't have in the first place. We are not far off debt being 100% of GDP - we spend approximately £112 BILLION per annum on INTEREST on UK debt - this equates to nearly 4.5% of GDP without reducing the actual level of debt by one single penny. In other words for every £20 we generate, we give almost £1 back servicing debt but not reducing debt. When you consider that we spend about £108 million per annum on Education this puts the eye watering level of debt into perspective. The housing market and decline in public services don't help the situation but these would be much easier to tackle if we as a country significantly reduce the amount of money we literally pour into the coffers of the financial institutions who are all too willing to keep lending to Governments who are only focused on short term fixes. There are no easy fixes economically - the UK MUST find a way to service its debt in a meaningful way or this country and the future of most of our children is literally doomed to levels of austerity that will make the current situation look like a walk in the park.
@@VincentRE79 Neoliberalism leads to a failure to invest as it relies on private financing rather than state investment. Keynes provided a successful solution with state involvement after the Great Depression and we probably need something similar now. Biden made use of MMT and this approach when he gained power and we can see their success with their current growth.
Ageing population with higher demand for public services + more expensive health care these days. Then throw in gradual decline of UK & Europe generally - now made worse through Brexit, Ukraine, Cost of living crisis etc. All following years of Austerity.
Question from a person from across the pond in the US. Why are UK local councils going bankrupt? Does the central government take over when a local council declares bankruptcy?
Basically central government thinks it is less politically damaging for them to cut local government funding than to cut central government spending. Therefore over the past 15 years local government budget cuts were even bigger than central government cuts. Local governments also cannot easily increase taxes (there are constraints on how much council tax, the main tax, can increase), so eventually local governments go bust.
I do actually agree with your analysis. But quite frankly. F off. I work hard. 60 maybe 70 hours a week. If my business succeeds, great. But if it doesn't i will get nothing. Why should my life be massively degraded for tiny tiny improvements in rhe lifestyles of people who are doing nothing? Who arrived here 5 minutes ago?
Because when a whole population is successful everyone is more likely to succeed. How is your business meant to succeed when nobody can afford your products or services. A strong economy is good for everyone economically. And then you have all the things you don't yet gain from. It's easy to disagree until you need 100's of thousands of pounds worth of cancer care. And as he said for the people arrived 5 minutes ago, but how much does the price of social care go up without them. Even more family inheritance paid on social care, and probably many simply left to die without labour
What are you talking about? The vast majority of people who "arrived here 5 minutes ago" are either students or workers. They pay taxes and out of pocket fees just to have access to our services. Who are these people that arrive here 5 minutes ago and do nothing? The imaginary people in your head? The overwhelming majority of benefit recipients are UK citizen who are either retired or disabled. Refugees are entitled to aid, but that comes from our Aid Budget, which doesn't go back in your pocket regardless of whether they receive that aid or not. I don't know how much you're expecting your taxes to increase by to massively downgrade your life, but I doubt that will be the case. And I hope you know that whatever portion of money goes to these imaginary people is a tiny fraction of a fraction, compared to literally every other aspect of society.
If you have a constant stream of more people into a country then the availability of jobs goes down while the demand for resources goes up. Then the only thing that can happen is wages stagnate while prices increase. And of course crime, traffic, need for public services etc goes up which brings standard of living down. It is a spiralling race to the bottom that breeds resentment and distrust and increases tribalism while decreasing morale, and it is so obvious that will happen that either the people responsible are so grossly incompetent that they should not have power, or they are malevolent and should not have power! And just wait until the combination of an improved AI and automation compounds these problems massively.
The issue isnt taxation exactly, its the circular nature of the economy & what the money is spent on. If the money is retained in the uk (purchasing goods and services in/from the UK) then it can stimulate job creation but if the money is wasted and/ or extracted from the uk then its going to make us all poorer (seems to be the trend, look at dividends growth, companies arent investing and growing they are extracting wealth from the uk and sending it to offshore shareholders (including from revenue from government spending). Taxation is important but the structural makeup of the economy will be what matters.
University have bankrupted themselves buy paying VCs £500k per year and claiming they have no money when really they are embezzling funds. More money via forein students has led to corruption in these institutions the worst offenders should be allowed to fail and we just pay and keep the most solvent ones. Reducing migration, would lead to lower rents and higher local wages I have lived it in Western Australia. This is what we need in the uk end the doom loop, raise living, standards, get more tax revenue and make the uk more attractive to skilled migration. Not more low skill low wage individuals who end up choking public services and paying very little tax and contributing to the misery experienced by low income earners and the working poor in this country. If we are going to have immigration we need a skills shortage list and only offer visas to match industry needs just like Australia does. I would pay more tax if my wages increased, making me better off and allowing me to contribute more.
If you have a constant stream of more people into a country then the availability of jobs goes down while the demand for resources goes up. Then the only thing that can happen is wages stagnate while prices increase. And of course crime, traffic, need for public services etc goes up which brings standard of living down. It is a spiralling race to the bottom that breeds resentment and distrust and increases tribalism while decreasing morale, and it is so obvious that will happen that either the people responsible are so grossly incompetent that they should not have power, or they are malevolent and should not have power! And jist wait until the combination of an improved AI and automation compounds these problems massively.
NHS would be in a much better place if it hadn’t been hugely throttled during vidcov. It’s not as simple as more or less tax . The problem of vidcov rising waiting lists was caused by too much government, not a lack of it.
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it, "I pray that anyone who reads this will be successful in life
The response to this issue is actually simple. Here is the answer: restructure the government, house of lords elected by the public, the monarchy and system of peerage abolished. Land ownership reforms. City of London needs to come under control of Westminster. Transparency, no anoymous ownership of property, resources. Bring back heavy industry, mining etc. Increase competition by reducing red tap. The hardest part is challenging those who benefit from the current system.
If you go up and down the country one thing stands out if London were to fall England is done,most developing countries are built around one capital city having almost all the wealth which is recipe for disaster but the one saving grace here is low levels of corruption and some seemingly small distribution of wealth
Tax rates on the poor and middle class keep rising, but we have antiquated capital gains tax rules and the tories cut the top rate of tax. Redistribute the tax to the top that made a lot of money from covid rather than taxing the people at the botrom who are worse off since covid.
I am in favour of raising taxes. Mostly on the top percentiles of earners. And capital fains taxes. I have never understood why capital gains tax is lower then income tax.
Management is essencial.. how much was spent changing all the signage to reduce the speed limits in the cities.. and putting down speed cameras everywhere.. do we really need to be controlled by technology with a massive spending on these tech systems? Wouldn’t it be better to put that money on education? It shows the reduction on defence, but they spent 17BL on aircraft carriers.. wouldn’t this more useful to build a couple of so needed motorways on the South and North of London to reduce the traffic on the M25 and consequently the pollution around London? Why do I have to take the M25 to go from Canterbury to Brighton or Portsmouth? Or to go from Ipswich to Bath? And the decrease of the economical growth! Didn’t you think that leaving the common market would affect that? Europe is one of the biggest markets in the world right next door and the English politicians decided it was better to leave it!? Yes, the politicians because they lied and manipulated the information so it could happen.. the referendum was consultative not binding, with only 3% difference and they still run for the hills with it!! What about the enormous cleavage between salaries? Why are people getting payed above £100k per year to be managers in public services? Why did we sell some of the biggest business assets of any developed country, like the energy (electricity, fuel, gas) and water? Can you imagine the amount of revenue a country has lost by giving these profits away? We better start looking at causes and solutions.. putting people against the wall to pay more taxes without a thorough study of the options and solutions, I think is quite irresponsible, manipulative and demagogue.
The tories have slashed funding for the NHS and other public services since 2010, cut funding to its lowest levels in real terms adjusted for inflation in well over 40 yrs.
I honestly think we need to reconsider education to a massive extent. Does not prepare you at all and is really not relevant to actual work and companies now no longer provide training and very rarely support for any new graduates. Then they're all encouraged to move to a different company or industry to get a pay rise every year then we wonder why the economy isn't growing and specialisms seem to be Declining in favour of project, sales, marketing, management and generally more broad oversight vocations than doers.
What you're not identifying is the gross disparity in the taxation of work not wealth. I pay approaching 50% tax on wages of £65k while my brother in law with his £22m mansion in London and £10m villa in Majorca pays a marginal rate of under 10%... It isn't fair but nobody except the Greens wants to talk about it...
Shorter waiting lists mean that people who are of on long sick get the help they need quick and get back to work quicker and the quicker they are back to work the quicker they are back to paying taxes. Cut backs on NHS is the stupidest thing any government has done
Couple of things you didn't mention. Rent controls as a way to stop paying out as much in housing benefit, improve peoples cost of living and it may also encourage a firesale by buy to let landlords bringing more properties up for sale. Second you mention taxes as if it was one big blob, but what about aligning CGT to income tax and NI rates. What about aligning taxes on divdends and adding NI? what about a wealth tax charged on properties over say £1m? There are lots of choices that can be made
Not all taxes or tax rises are made equal. Taxes for ordinary working people and small businesses need to come down or at least be frozen. Taxes for the wealthiest in society, particularly multimillionaires+ and large corporations need to be significantly increased. Income and wealth inequality is largely to blame for the problems of today, the number of billionaires has more doubled since 2010, but poverty and homelessness has risen sharply at the same time. Raise the income tax threshold to £21k so that people working the average full time 35 hours a week on minimum wage aren't paying income tax any more. Raise the threshold of inheritance tax to anything over £1 million. £325k is far too low these days. Raise the top rate of income tax from 45% to 60%. Raise corporation tax to 30% with exceptions for small businesses. Bring in a annual wealth tax of 3% of all wealth over the value of £10 million. Simplify the tax system and close all loopholes, harsher penalties for the worst tax evaders.
@@IceValley388 Corporation taxes in general have been too low for too long, especially considering how much has been privatised. They ranged between 52% to 35% under Thatcher. 33% to 30% under Blair. 30% is perfectly reasonable when large corporations are raking in hundreds of billions a year while ordinary people struggle more than ever. Remember Corporation tax is only levied on profits, not revenue.
@@Jordan-fd6cx loopholes around corporations not paying a fair share of tax should be closed. We have high street shops vanishing out of thin air. Higher corp tax not the answer
@@Jordan-fd6cx raising corp tax sounds great, but in reality it will just lead to even less foreign investment and existing corporations will just leave the country. Both consequences will do more to hurt the economy than any increase in short term tax revenue might help. Economic theory has shown that decreasing corporate tax has actually led to increased overall tax collection due to much higher economic activity, which is subject to sales tax, etc. You'd be better off taxing the benefactors of corporate success than taxing the company itself, like shareholders or the income of the highest earners. Unfortunately, the solution isn't going to be as simple as a magic fix of changing a number here or there.
@@Jordan-fd6cx The higher corporation tax is, the more worthwhile it is to lobby for exemptions. MPs do what their lobbyists tell them. We will raise more tax if we cut Corporation tax
Several graphs are very misleading , I advise anyone watching to carefully read each of the graph titles as they do no match up with the narrative. Some graphs need other information for them to make any sense.
Today, 21st August '24,the Tories are still saying that their handling of the economy was fine. Old Tory Chancellor Reggie Maudling had the honesty, when handing over to Jim Callaghan, to apologise for the mess.
So long as the police are driving around in new BMWs, ULEZ cameras being bought and replaced at significant cost, rainbow pedestrian crossings being built, HS2 being built at fantastic cost despite no public desire for it - I could go on Then we have plenty of money, we are just wasting it on things we don’t need and overpaying for things we do need.
Tax the poor and borrow from the rich. Thats the method we have had past 50 years. Austerity only hits the poor, but the poor are empty. Theres only 1 clear thing to do
There is no money and no plan. The British politicians have based their decisions not evidence, but on expediency and dogma. Taxes can be a benefit to the community and the economy, look at the Nordic model. British management is no better, how many companies only started to make a profit under foreign ownership? What is this British exceptionalism based on?
I want to pay more tax for working services. I worry the issue is that much of the service is privatised and my money is going into profit for these publicly owned companies. I think the only answer is to publically own much of our services and any money of profit should go into investing and improving it. But maybe this is also false economy it would be good to know if this is a viable option.
Yes, but we only need more imported NHS workers due to the pressure put on it by mass immigration, so immigration creates the need for immigration.. Who woulda thought? It's a downward spiral.... The mass importation of an economically low yielding socially hostile demographic that doesn't pay in but still demands the rights to free healthcare and shelter that requires ever more money to be spent on staff to serve them. Also, from a leftist perspective, stealing the educated skilled medial staff from less developed countries is morally evil and a form of economic colonisation. Every country should be training their own, not plundering less developed countries of their educated class because they are cheap to buy.
I think one mindset that has to be got rid of (not saying you fall into this) is this silly idea that you can either have a good economy or a good social services. When as has been proved time and time again, a good social services boosts the economy. The economy is made up of people, you need to save the people to save the economy.
Increasing taxation for better public services, health care etc is always good as long as it doesn’t affect people’s quality of life. Right now, working class people cannot squeeze one single penny more out of their wallets but the rich have never been richer. Combining income tax and capital gains tax so that rich people pay their fair share of tax will go a long long way to fixing UK’s problems. Conservatives will never do this as they are still following the trickle down economics where they give everything to the rich and expect them to pass down their wealth, we know that does not happen. Labour are saying they won’t increase tax on the rich but there’s a high chance that they will based on their past ideologies. We can only hope.
Increasing the skyrocket high taxes even more is never the answer. Uk has one of the highest taxation for middle class in the world. Many have left, many more will. But I have to say that Brexit was a brilliant move, now people are being stuck on this gloomy island.
Economic crisis facing Britain England London can be fixed by Labour government this get voted in by Pietro Boselli Italian who British citizen Londoner. Awesome. Well said. Spot on. Austria Better system cash benefits compare to Britain.
How much would stop paying out to support other countries bring back as revenue? 2022 the UK governments uk aid spend document details 1.1 billion. Goes a long way let alone the principal of giving to India (has a more advanced space programme than us) and north Korea (don’t need to justify this concern)
Great video as usual. Do you if the “retired early” group of people are included in the out of work stats? In other words, is everyone under the age of 66 automatically counted as should be in work?
If you're not looking for work (e.g. just traveling or raising kids or living your best life, etc) then you're "economically inactive". You have to be working age and actively seeking work to be considered unemployed. I think this is measured by a national survey, rather than info from the job centre or anything like that, but I'm not 100% sure how they measure it.
someone that puts in to the system £1k per year, takes out £10k per year in public services, deserves to get £20k per year worth of public services. because "public services must work innit". this is your logic.
I'm voting Labour hoping they spend more. There are obviously some easy tax rises that will help labourers. 1. Council tax reform (great for us outside of London) 2. CGT in line with dividend rate and income brackets. 3. Remove national insurance and increase income tax a couple percent to balance the shortfall. 4. No more free bus pass for over 60's 5. Pension and minimum wage both triple locked. 6. Force companies to take out group PMI, giving workers less time off work for illnesses and faster treatment. 7. Auto enrolment increased slowly up from 8% to 20% over the next 5 years.
I can't believe 'Right To Buy' still exists! It just doesn't seem fair. Those who are lucky enough to win a Council House then get a massive discount which they can then sell on for more. I hope Starmer gets rid.
Taxes have to be reduced in order to make the poorest more prosperous which will provide more tax revenue to spend on public services by levelling up the poorest. However, this requires a cessation of new benefits claimants who require housing… Alongside this other measures will be necessary. Here’s my plan… 1. End net zero. Invest in green technologies thru tax incentives. Encourage, not enforce the switch over. It is important to switch for National Security. It is important to do this slowly for the economy. 2. A free level 6 qualification for those born in The UK (and living here for whole life) starting with qualifications needed such as healthcare. This will support working people providing job opportunities. 3. Mandate Banks to provide fixed rate whole term mortgages. This will support working people making them richer over time. 4. Freeze all state benefits for 10 years. What you receive today is what you will receive in 9 yrs. This will devalue them overtime and encourage a return to work that can be planned. Income will be maintained at that amount should you earn less during this ten years. This will discourage economic migrants as any benefits in real terms fall. 5. Public sector pay rises to be CPI+1% annually for 10 years. Strikes will require 80% service levels effectively ending strikes but requiring fairer solutions to maintain a workforce. This will allow better budgeting for managers and fix employment costs. 7. Children’s social care to be delivered through schools 52 weeks per year including free meals. This will protect children from benefits freezes and create jobs funded by the benefits freezes. Staff to provide more fitness and health orientated activities during current 13week breaks to raise aspirations etc. 8. All benefits claimants must undertake 16hrs pw voluntary work in order to receive benefits, unless medically exempt. Litter picking if necessary. This will discourage economic migrants and return people to the habit of work. 9. Tax the rich through corporation tax and / or UK turnover rather than profit. This will limit opportunities for clever accounting to avoid taxation. 10. Abolish 20mph zones and set national speed limit to 30mph unless otherwise stated. All revenue raised through fines to be used to fund children’s social care through schools. Police and Local Authorities must only use enforcement where it is actually necessary and not where it captures the most revenue. This will cost them to operate and ensure necessity and proportionality. Let’s remove fear of persecution from our roads and get the country moving again. 11.Remove the ability to reduce speed limits from local authorities. They have abused it and wasted public money doing so. 12. Points based immigration. We only allow in what we need. Or genuine asylum claims. Managed and processed in/from a 3rd country. Arrive here illegally and get deported. No arguments. To come here, you must want to assimilate, adopt a British way of life and accept modern Christian values. 13. No access to NHS or benefits unless legally in the UK, or paying privately / insurance etc. Full access only after 10yrs working and contributing to the Nation. 14. All monies transferred outside of the UK as gifts to be taxed at 40%. This will discourage economic migration. 15. A return to the Right to own firearms / arms for self defence. This will help to maintain the balance between citizen and state, and limit overreach. Every despot in history commenced with the disarmament of the population for their own “safety.
@@beefy0978 tbh I agree with about half of it, but you seem to have the American conservative "pull yourself up by your bootstraps" vibe on NHS and benefits. Most benefits go to old folk
I'm loving these videos, you explain very well. Honestly in the coming election I would vote for a tin of bakes beans if I thought it would fix this country. The place is an absolute joke.
Thank you for finally addressing the elephant in the room. The next government beat the Conservatives or labour or reform are going to have a hard job pleasing everybody. The Conservatives are keeping it together and slowly making progress. Changing The government now for one with a radical New approach is not going to improve things. we need stability not change in these difficult times. There are no easy answers. I think we should acknowledge these facts and understand that increases in quality of life that we have known for the last 30 or 50 years will not continue at the pace that we are used to.
For growth. We need to lift taxes off the back of workers (who create wealth) and onto land owners (who appropriate wealth) and the rest of the idle rich.
The underlying problem is that politicians cater to the mighty and the rich. They usually don"t care about the societal costs of their decisions. Can't be there helped under the existing system, though.
Guess what? Bureaucracy costs! we needlessly waste money. Reduce the cost of the red tape and then we might get a savings in efficiencies and then more in the pot!
![ILLSLICK - THE KING'S LANDING [Freestyle]](http://i.ytimg.com/vi/feIJJnNkTfk/mqdefault.jpg)
Been coming to England 3 days a week for the last 35yrs (I’m from the Netherlands) and the decline is noticeable the last 6/7 yrs..
@koosgijsman because in those last 7 years tory government has invited over 2 million new immigrants to the population, whilst only building 400,000 new houses, no new roads. No infrastructure etc. Thus expediting the decay and overcrowding the place.
Vote reform
The UK doesn’t have a growing industrial base to pay for pensions and benefits. It is being done with borrowing.
Boomers got to boom, triple lock all the way.
@@Fluid-Druid You borrowed far less money back then.
A higher percentage of a smaller amount doesn’t necessarily mean more than a smaller percentage of a higher amount.
Simple maths really.
@Fluid-Druid complete waffle, paying 15% on a smaller shorter term loan hurts nowhere near as much as 7% on a massive 35 year loan. Whip out an accumulative percentage calc and go see the difference yourself, put in what you paid for your home back then on that percentage and how long you paid that and compare it to what someone paying average price and average percentage pays now. It's not even close
@@Fluid-Druid 15% is irrelevant when the mortgage is barely larger than a first-time buyer’s deposit in the 2020s.
@@julianphillips1010 people lived much more basic lives back then. And things were more expensive. See contestants on game shows get excited over winning a microwave or dish washer.
In my experience in recent years now: if you aren't Pregnant, Elderly, an Infant or in need of A&E critical care (RTA's Blue lights etc): then there isnt really an NHS anymore.
Working age adults have to pay to get anything done within years of needing it or any sort of diagnosis for longterm health.
Sometimes not even being in a serious state is enough to get you into A&E quickly. I helped out a young guy last year who had passed out unconscious from some very serious alcohol poisoning, his friends were freaking out because he was clearly in an extremely bad state (he was completely floppy & unconscious, vomit & bile slowly was pooling out of his mouth, he had an extremely cold body and was barely breathing) but the queue to get an ambulance was over 1hr long and the caller wouldn't move him up the queue unless he actually stopped breathing (or "lips turned blue"), so they advised his friends to moniter his breathing.
After helping them to get their friend into a proper recovery position, cushioning his head against the freezing cold concrete (the poor dude had collapsed in a random doorway wearing nothing but a pair of jeans & a thin t-shirt soaked in vomit on a freezing cold Winters night) and getting his friends to pile some of their jackets onto him and start rubbing him to warm his body up (as he was at genuine risk of hypothermia), I ended up persuading them to take him in a taxi to the hospital or to a responsible parents house because leaving him out in the freezing cold like that for an 1hr was guaranteed going to make his condition worse.
His friends kept on asking me if I was a nurse and were convinced that I was hiding some secret medical training even when I said I wasn't because apparently I helped them out more than anyone (even the 999 operator) had. I am naturally a very calm, collected & straightforward kind of person in these situations but I have no training and I've simply read up on how to deal with a few types of situations (i.e. what to do if someone gets stabbed, has alcohol poisoning or ends up in the river Etc) because I'd rather be able to do something to help in these kinds of situations than nothing at all. Ambulance services are super strained ATM and sometimes its the non-medical people who are first on a scene who can make the biggest difference to whether someone makes it or not.
I got routine blood tests very easily and without any hassle
1 individual success does not disprove 7.5 million people on waiting lists measured in years increased from 3.5 million in 2010 unfortunately.
Yeah definitely agreed.
I do strongly agree with that. But I wanted to share some positivity for a change after my recent positive experience with the NHS.
Recently went to the GP after having a persistent cough for 5 weeks. Got booked in for an xray and got it the same day. Results within a week.
Was very shocked myself after whats been going on the last few years +
@@ComputeCrashers It varies a lot, different departments are experiencing different levels of problems.
Whilst I was once able to get an x-ray done pretty quickly on some health issues where cancer was a possible suspect (thankfully it turned out to just be a couple of very manageable tumours), another guy I knew ended up having to wait many months for tests on some symptoms that later turned out to be an aggressive type of cancer. The thing that was really heartbreaking was that if he'd only been seen earlier, then the cancer may have been caught before it became terminal.
He was in his 50's and a dear friend of my dad's side of the family and once everyone found out that had terminal cancer, a number of older relatives came together to give him enough money to pay off the remainder his mortgage so that he could retire early. It was so sad because the dude's life had been really looking up before his health took a turn for the worse (he'd found a long-term girlfriend and was planning on proposing to her), but sometimes life is just like that.
I really hope that the NHS can be saved because if it goes private we will return back to a Victorian era where people die from treatable diseases and poor health ends up dooming people to dire poverty or homelessness. I've been to America a lot over the years and the situation sucks out there, absolutely tons of the people who are homeless on the streets (and/or cannot get off the streets) are so because they've got psychological or physical health problems that they couldn't afford to treat and which ended up putting them out of work & home.
The costs of dealing with the long-term consequences of problems like child poverty, homelessness and drug addiction Etc costs far more than it does to prevent these things from occurring in the 1st place, so we must protect our services at all costs.
The U.K. is on an unavoidable downward spiral as no political party is prepared to take the hard decisions and those who claim they will are heading in the wrong direction namely further towards authoritarianism.
Luckily I’m 70 and have about 10 years left on this rock so I’m only here out of morbid interest.
We need a tough and bold PM to take over and sort things out. This period feels like the 70's, a time of high taxes and stagnation .
Too bad old people were allowed to vote in 2016. A generation with no measurable stake pooched the whole country for the young.
I am about the same age, and have the right to live and work in the UK if I wished, as well as in another three western countries. But, tbh why should I live in the UK, given my standard of living would decrease there compared with the others?
Well done being part of the generation that caused these issues .
Great mindset you have
No family then?
Let me paint a picture here I’m married in my early 30’s stuck in the rental trap. The generation before me had lower taxes better services, cheaper housing, better wages, all we’ve done in this county for years is kick it down the garden path and now it’s finally come to light the younger generation just do not have the ability to support what was given before anymore. We have no disposable income we don’t have final salary pensions, we could never dream of retiring at 55/60 or even 75 at this rate. The days of owning a house are seemingly slipping away, I’ve never used the NHS well maybe a GP appointment once every few years, the system is broken full stop.
We were paying 30% income tax back in the 70s, young man. Plus NI, of course. While vat has gone up, income tax has never been lower than it is now.
Oh, and the NHS certainly wasn’t better in our day. Even in the 80s if you got seriously ill in your 60s you were written off as being ‘old anyway’.
We had better wages yes, largely because we did apprenticeships and degrees that employers wanted. Too many now do not.
Income tax yes, how much was the average house price compared to income? What was the retirement age? Did company pension schemes include final salaries? Was going tot the supermarket and utilities equating to what it is now?
And a lot of that being written off is due to medical advances which… is a tricky one to manage
@@alimack5489 I addressed the points in your post which were factually wrong, that’s all.
And the fact is, with medical advances, the NHS is better now than it used to be so I’m not sure what your point is.
@@hughjohns9110 average rent compared to income 1980 5.7% now it’s 38.7% . Retirement age 1980’s 60/62. House price compared to income 1980’s 5x income, it’s now 10x’s income. For us to compare an income of 1980’s the average salary would have to be 70/78k to be comparable now.
Good analysis but unfortunately missed a big point relating to wealth inequality. Would’ve loved if you included it on your analysis. Thank you for your videos.
The UK won't build the houses while NIMBYs on the one hand continues to block social housing developments, while those heavily invested in housing like to keep the scarcity of supply to artificially boost the value of their assets (which should be people's homes, not boosting asset prices!)
I agree 100%
Do you wish you had bought 2nd and 3rd home that you could be renting out for a small fortune?
I don't want any new houses in my town as its not countryside any more
@CommonPurpose1 ironic your name is common purpose but you dont want to sacrifice for the greater betterment of the country.
To get where we need to be the tree needs to be well and truly shaking rerooted and replanted in a new space and era.
That's because most housing developments are currently going up on greenfield sites.
If it weren't for the NIMBYS there would be no green spaces anywhere.
The demand for social housing is being driven by population growth, and 80% of UK population growth is driven by immigration
I am no economist but I clearly see the massive, and accelerating, transition of wealth from ordinary people to the Super Wealthy. I would like to see you research that with your "Economist" hat on and quantify that.
Exactly! That was the real elephant in the room that he simply ignored.
Seconded. Too often I see complaints about the baby boomers having emptied the pot for future generations whereas there has been a steady flow of wealth upwards and to the big corporations. Divide and rule.
Yeah. First cut of my pay check isn't to the government, it's to the company's shareholders. How many people make as much money for themselves as they make for someone else? Then how many pay as much VAT as they pay to their landlord, the shop's landlord, and the supermarket's shareholders? And where is the tax money ending up when services are privatised, lobbies and tory donors get contracts and the state owns net zero of the assets? Money's not trickled down, only funnelled upwards.
@@dananskidolf Spot on. We all live on the farm and guess who get's milked.
Gary's economics is a great channel on this
Freezing the tax threshold till 2028 ensures we pay more tax if the threshold doesn’t rise with inflation.
Fiscal drag. Gordon browns favourite
I’ve come to the conclusion that the UK is now declining and the country will never recover from this, very concerned with my future in this country.
@@bigman3130 Well what do you expect when the people keep voting for the destruction of all services and zero investment? Evil in, evil out.
Hi, just want to say how useful these videos are. Thanks for putting them out there!
Simple.
Ever more desperate people scrambling for less and less affordable housing helps to make them hungrier (in both senses of the word) and helps to drive up the costs of the properties they're all forced to fight each other for.
It's social and financial engineering at its worst and ugliest and unfortunately we have long had a constituency in the UK that's long become addicted to the ability to make money from money in their sleep.
Thank you for your continued analysis and observation which seems quite unbiased! Its good to watch this and cut through the lies of the 2 political parties. Because of the fundamental economic issues of the UK I now work remotely and live in a country with much lower cost of living! The UK is truly doomed, I cant see a way forward sadly.
There will be a way if politicians work together and stop making false promises... but the amount of time it's going to take even if that happened to fix this country is not going to be worth waiting for if you ask me.
@rossjames totally agree
@@adam7802 Yes countries can and will enter a period of extended econmoic stagnation or decline for 20+ years until something changes. See Spain, Japan, Argentina etc...
@rossjames4765 how and what does one work In remote.
UK people are begrudgingly bearing the brunt of lingering austerity measures following the aftermath of the financial crash. This intertwined with Brexit have stunted the UK's economic growth in the last 15 years of Tory hegemony. Here in Fort Worth Texas inflation has been quite rampant but at least there were pay rises and housing is not too out of reach of a medium household.
It's not just that. The issue the UK has had is:
- we imported millions of people who push up housing costs and push down salaries. The lower salaries don't cover the tax burden of the new people
- The only investment went into housing, instead of starting productive companies. Any companies that do exist have to pay vast amount of money for property that the barrier to start a company is much lower
- The UK has a vast unproductive class of people on benefits. These people provide zero to the UK, yet cost a fortune to maintain and increases crime.
- The politicians (of all types) have asset stripped the UK and sold off the family silver (school fields, industries etc) to cover short term costs but have run out of family silver to sell.
- The cost of living is so high that nobody is having kids, which means there isn't the tax base to draw from.
@@ChristopherVickers It's a vicious cycle.
1) Brits aren't having kids because the cost of living is so high, a large portion of which is the out-of-control housing market.
2) People a not insignificant chunk of the working age population are dependent on low-pay, low-security employment and therefore are also dependent on state subsidisation (housing and employment benefits).
(issue 1 and 2 are due in no small part to banks lending huge amounts of money for house purchases whilst simultaneously being reluctant to lend to businesses).
3) Because of issue 1, the number of people in productive employment is falling as a percentage of total population, meaning less available tax revenue/higher social support expenditure (NHS and state pensions).
4) Because of the combined impact of issue 1 and 3, the economy and state finances are dependent on inflows of working age people from overseas, however some groups of newcomers end up costing public finances far more than they contribute.
5) Because of issue 1, 2 and 4, house prices remain inflated well beyond average wages and continue to grow at a rate much faster than earnings growth. This causes a low growth/low productivity economy in which work does not not pay and the asset rich get richer and richer within asset classes that have preferential tax treatment which allow avoidance. This has a hoover effect via which those who are already asset wealthy are able to obtain and retain more and more essential assets like homes (see rental property partnerships) and continue to extract ever growing rents from the productive non-homeowning population.
From what I can see, the main issue that is really hamstringing the UK economy is the housing market. Solve that and you solve the low reproduction issue, the cost of living issue and a big chunk of social spending. Additionally, all that money being spent on productive endeavours may actually be just the thing needed to kick-start the economy into a period of notable growth.
@@benghiskahn3673 Excellent and detailed assessment
@@benghiskahn3673 These problems can be solved by our government but would think the Treasury is probably blocking money being spent on building more social housing etc and is just relying on a quick fix of allowing more immigration. Migrants coming here to do low level jobs is a ridiculous situation, they will just join the rental sector pushing rents up even further and then need housing benefit to help pay these inflated rents while paying small amounts of income tax in return. I can only think that the Conservatives have been battered by Covid, Brexit, Ukraine and not been able to devote time to solving these issues.
It’s almost like it has been the incompetence of various UK governments and not the fault of the EU, that the UK has done so incredibly bad compared to the rest of the developed nations. Who would have thought?!
I think Stewart Lee made that point very well. Just search "Stewart Lee UKIP" if you want a good laugh.
Including most of the EU ones, for some reason.
Chronic underinvestment in services, low productivity, regional inequality and aging population are the main ones I believe.
Brexit definitely hasn't helped but frankly these underlying issues don't have much to do with EU membership.
Most of the EU nations are having similar problems
It's not various UK governments.
Things were improving under Labour last time.
This is the best economics content I've found on TH-cam, superbly presented and you're very charismatic. Length is perfect and topics are usually exactly what I'm looking for. However I think the channel name is terrible, it's too generic. Just some hopefully constructive criticism because you need to be heard by as many as possible :)
Reducing immigration - at least in the short term, until housing catches up to unmet demand- should be a priority for the next government. So should training more native Brits in health care fields.
Spot on.
I think you need to look at the trade-offs section. Remember that the vacancies for NHS and Social Care are still in their tens of thousands. A nurse takes 3 years to train. A Doctor takes 7. What do we do in the meantime? Where are the British people willing to spend 3 years training as a nurse with 12 hour shifts, and low pay. What do we do in the meantime? Let's be honest here. All those wonderful tax cuts we had to be paid for by cutting back public spending, which includes the NHS. The UK workforce is shrinking because it is ageing, and the birth rate has been below replacement rate for decades. It is actually too late to be particular where your health and social care staff come from, as they are needed now. Not in 3 years and not in 7, but now. That's why private sector contractors are waiting for the NHS and social care to collapse, whilst they are bleeding it dry. They want it broken enough so people will pay health insurance. You can cut immigration all you like, but it's too late to stop the rot. It's gone on too long. You see, all the problems we have have been created to make wealthy people even more money. That means they want a weaker state, with little or no public services, and to pay little or no tax. And we fell for that. We shortsighted lay agreed to tax cuts, not thinking it would literally come back to bite us. It has. Child poverty has returned with a vengeance. Young people are finding it impossible to start a family in a home of there own without the Bank of Mum and Dad. And intergenerational wealth is shrinking too. So, we need immigration just to clean up the mess left behind by the direction our society took over 4 decades ago. And it will take decades to repair it if we have the luck to do so. And we will need it. And it might mean that we will have to look at our priorities as a society, because our problems in the present come from those priorities we set in the past. And if we don't like dealing with these current problems, we need to take an honest and realistic look at the priorities that created them. The problems were created by immigration. Immigration needs are a symptom, not the cause. The cause is that we believed stuff that wasn't true. Tax cuts were free money. No, they weren't. Every tax cut meant a cut in public services each and every time. And Austerity just accelerated that decline. Now there's a quiet crisis going on because we're being gaslighted each and every day. It's saddening to see how much it's hurting us. We gone backwards in life expectancy. Diseases of deprivation have returned, and medicine and treatment is being rationed. People are having trouble getting their prescriptions filled. And the elderly... With undetmanned social care, there suffering too. We've messed up, by allowing it to happen. And really, we need to decide who we are and what kind of country we want to be. We've got to be honest about it, because there is no perfect solution, and we can't have everything at the same time.
@@CuriousCrow-mp4cx I first gave you a thumb up but realized reading beyond line 4 you repeated yourself unnecessary for 15 lines. You can edit I guess ;-)
Very well articulated! Greetings from Florida @@CuriousCrow-mp4cx
A reduction in immigration is definitely needed. I hate the fact that immigration is such a taboo topic nowadays. Controlled migration that helps the country is great and valuable. But not what we've had in the last few years. And the effects of mass migration are never mentioned
NHS=I don't want to go to 15 doctors for "preventative care" when all I need is one good doctor to FIX THE PROBLEM!!!
Privatising it would prevent this as they would have to be profitable and therefore efficient.
@@travellingtom6091 no it means an American system where everything costs twice as much and those that can least afford it don't get medical cover the less you earn the less your life is worth
@@travellingtom6091 Why do we never run out of bread? Because it is easy to become a baker, because the State does not regulate this profession: do bakers kill customers? the poor can't buy bread? The enemy is the looters from NHS ,who pass laws to empty the pockets of poor, sick people.
@@IMO1964 Yeah, this is a danger and I accept your point. We would need competition in the market and I'm unsure how the less well off would be funded.
The trouble is that the NHS is such a mess, throwing money at it would be pointless.
Difficult one isn't it.
@@travellingtom6091 Didn't we already try this with utilities, trains etc.? 🤣
We need better laws around tax avoidance and benefits for corporations, corruption and greed is out of control.
Tax avoidance is entirely legal as it should be.
What you are asking for is quite impossible.
Any increase in taxes will be pushed onto and paid for by the population.
What we are unable to afford.
@@sirianofmorleymake it illegal then.
@@DatFwadso everyone has to pay every type of tax? Silly.
@@sirianofmorley no one is saying every type of tax but close the loop holes. This offshore bullshit has got ridiculous. If you own anything in the UK then you own it here not in some structure in the Cayman Islands that is tax exempt. We need to start getting tough on the billionaires that hide their money in these stupid opaque structures. There should be a national task force set up to specifically deal with it.
@@DatFwadyou're conflating tax evasion and avoidance. You're talking about tax evasion which is already illegal.
What you suggest is noble to increase tax receipts but any change to the tax rules like that will be passed onto the population (as you see with VAT and your chocolate bar becoming smaller) and then you will get people complaining about salaries and cost of living crisis.
Political suicide to make this change.
You missed a 3rd. Fiscal responsibility and less waste. Doesn’t have to be one of the other
Totally true. Wastage in the public sector is legendary.
I visited the UK in 1970. Haven't had money for that since then.
Isn’t it funny everyone wants a decent pension, decent nhs and people to have unlimited benefits yet no one wants to pay tax
They are already paying. People just don’t want to accept that governments are generally bad at providing these services.
@@freedomwatch3991 I agree they are but it’s the only way your get the services without paying a fortune for them. Most people in the uk pay little to no tax. Ie people on minimum wage. But get the same services as the people who do pay in. If they were in the USA or some other countries most of the people would get no benefits or access to health care. You can complain in the uk but atleast if you get sick or break your hip your get a op or treated the same day and your come out with no bill in the USA you would be bankrupt
Or we just want better government spending
@@teelo523 the government don’t spend the money they give it to the departments and they spend the money
@@teelo523 ie 20% of your taxes goes to health ie the nhs and they spend your money 30% to the department of work and pensions and they spend the money on benefits and pensions you can check the ons or your government gateway app to see where the rest goes.
I feel like in the UK the conversation is bogged down in same old cliches and there really isn't a vision in how to move the country forward into the future. All the conversation seems to be about shifting numbers around, lower immigration, higher immigration, tax takes, low productivity etc. What there isn't is a discussion about how these problems stem fundamentally from historic policies and how to change the status quo. The housing crisis per example, for decades we have not been building enough houses, the planning system need substantial reform from how it is now as it's stifling both business and individuals. Likewise the NHS, the policy seems to be to just throw money at it and hope problems go away, rather than looking if prophylactics and operational reforms could save money, increase junior doctor's pay but severely limit the use of external agency staff for example. Infrastructure in this country is in an awful state of disinvestment, railways are basically still Victorian, sewage spilled into rivers and the sea, over the long term this lack of investment creates barriers to growth etc etc. Some councils are now spending 50% of their tax take on emergency accommodation.
No one is being truthful about economics either - especially economists.
Direct and indirect taxes plus NI means most workers lose a large amount of the salary to tax.
NHS:My Views have completely changed as my eyes have been completely opened to what Healthcare has become and how the medical profession has surrendered completely the traditional practice of medicine .
doctors behave in a similar way in the United States,UK,France, you have huge physician lobbying power of various different Specialties some Specialties
are obviously more powerful than others but it's always about trying to maintain maximum compensation how will any doctor maintain a certain salary preferably increase it that is their number one goal and collecting as as much money as possible within their coffers .
why uk pays housing benefit ??? other countries do not have it , there is no housing benefit in Poland , you go to work to pay rent or live with your parents , travel to bigger town or abroad to save money to buy house . Why people in uk do not do the same?
Haha, look at all these serious people investing in different projects, while weve already signed up for UNIMANTIC PROTOCOL and are waiting for millions!
scammer
Thanks for this sobering antidote to the Fantasy Island economics. We do need to get real, and give up blame for accountability - our accountability.
The fundamental problem is that politicians can continue to make unrealistic promises without fear of any real consequences.
At the same time, voters fail to hold politicians accountable because of their lack of understanding or critical thinking about economic issues.
So long as this carries on, the gap between political rhetoric and economic reality will continue to widen.
Real problems like inequality, job insecurity, and economic instability will persist or worsen.
Politicians claim to have solutions and control over the economy, but this is like the story of the "Emporer's new clothes."
They make grand promises about economic growth and prosperity based on outdated economic models from the 19th century and debunked ideologies from middle of the 20th century while the lobbyists and interest groups cheer them on out of self-serving interest.
The media also goes along with the charade, either out of sensationalism or self-interest.
The public is fooled by the spectacle or too afraid to speak up.
And no one notices or will admit that the Emporer (the politicians and economic pundits) is not wearing any clothes.
Interesting that the trade off for immigration you gave was less workers. It is also less strain on public services and housing stock,
Immigration has created capital shallowing (along with Brexit), you should do a video on that
It really depends on the individual immigrants that come. Are they a net cost or a net credit to public finances? If we have too many of the former then we're just importing more of a burden from external sources. But we should not have any issue with immigrants of the latter category who go on to work in essential services.
I think the issue is that we haven't really been choosy for far too long and as such there are large groups of new arrivals who either do not or are simply unable to actually do anything productive within our economy because they do not have the skills or inclination to do so. To my mind, such people shouldn't be in the country at all and should be obliged to return to their country of origin if they are not able to meet certain criteria within a certain period from arrival.
@@benghiskahn3673 completely agree
Why is it that the politicians never speak about the trade offs for their policies like this?
I actually agree with cutting goverment spending. Too much in efficiency and burocracy thst needs shedding.
You're right, that could be a problem. But does competition in the private sector guarantee efficiency? Is the private sector free of corruption? Why does the American health system cost twice that of the UK system? (and that's not accounting for the millions that have no medical cover whatsoever). Whether you pay for health care via taxation or via private health premiums, you still gotta pay! And private may be significantly more expensive. What type of society do we want in the UK anyway? I would personally prefer a society where I don't have to see a business manager before I see a doctor!
Did I hear right in the radio earlier? Swinging spending cuts incoming regardless of party
It's obvious, there is no wiggle room anymore, both parties are faced with the same issues and limited options
Could you do an episode showing whether the large amount of US owned companies affects our ability to grow. I just read Vassell State and it's surprising to see how deep US ownership runs in every aspect of our lives.
Tejvan, how likely is a total collapse of the economy and services?
Uk debt to GDP is 98.3% and growing. Payment of just the interest on the debt is now the UK's second largest expenditure after the health service. According to the BoE inflation calculator, the pound has lost 24% of its purchasing power since 2019. It's a similar story across much of the West. The US national debt is rising by 1 trillion dollars every 100 days! At some point, it feels like one of the countries in the house of cards has to fold.
Great analysis again. Really look forward to your videos
Another excellent talk on the state of the UK. It’s bleak but accurate
Its an economic reality that peoples wants are unlimited...
The question is how much should the state and how much should individuals keep...
Beyond a certain level of tax there is no incentive to work or invest
The problem we seem to have is that everybody wants the same level of service or better for health, infrastructure, housing, etc. but they believe that somehow the money will just appear as if by magic. What really needs to happen is the country needs to wake up and get used to paying more tax and the loop holes that allow the super wealthy to pay less tax than the average working person needs to be shut tight! And government fiscal oversight needs to improve.
This has been a choice. Let's not forget that it is the public that has voted for far right neoliberalism with its austerity, public services decline, lower taxes for the rich, QE for the rich with surging wealth inequality, a surge in house prices and a Wild West lettings market, pitiful levels of investment, immigration on steroids. And on top of this they then gave us Brexit with its 5% drop in GDP. Neoliberalism doesn't work and the sooner we wake up to that fact the better.
What is an alternative to Neo-Liberal economics that works?
I agree. People voted for this time and time again so they can't complain now.
I'll be emigrating to south east Asia soon thank goodness. Low cost of living where the GBP goes a very long way.
I'm sorry, but are you including the "far right Neo Liberalism" of Tony Blair and Gordon Brown in this error strewn statement? It is ridiculous levels of borrowing by political parties of ALL leanings that has put the UK in the position that it finds itself in. When one of your top 5 economic costs is servicing the £2 trillion + national debt then you should begin to realise that it's actually not austerity that has got us where we are now, but rather spending money that we didn't have in the first place. We are not far off debt being 100% of GDP - we spend approximately £112 BILLION per annum on INTEREST on UK debt - this equates to nearly 4.5% of GDP without reducing the actual level of debt by one single penny. In other words for every £20 we generate, we give almost £1 back servicing debt but not reducing debt. When you consider that we spend about £108 million per annum on Education this puts the eye watering level of debt into perspective. The housing market and decline in public services don't help the situation but these would be much easier to tackle if we as a country significantly reduce the amount of money we literally pour into the coffers of the financial institutions who are all too willing to keep lending to Governments who are only focused on short term fixes. There are no easy fixes economically - the UK MUST find a way to service its debt in a meaningful way or this country and the future of most of our children is literally doomed to levels of austerity that will make the current situation look like a walk in the park.
@@palmtree-e2l Are you emigrating because of problems in the UK?
@@VincentRE79 Neoliberalism leads to a failure to invest as it relies on private financing rather than state investment. Keynes provided a successful solution with state involvement after the Great Depression and we probably need something similar now. Biden made use of MMT and this approach when he gained power and we can see their success with their current growth.
What I'd love to know is why we're paying more and getting less. If taxes are high and public services are diminished, where is all the money going?
Ageing population with higher demand for public services + more expensive health care these days. Then throw in gradual decline of UK & Europe generally - now made worse through Brexit, Ukraine, Cost of living crisis etc. All following years of Austerity.
Boomers
Very enlightening. Many countries face or will face the same problems.
The problems that drive low growth have nothing to do with the symptoms.
Question from a person from across the pond in the US. Why are UK local councils going bankrupt? Does the central government take over when a local council declares bankruptcy?
Basically central government thinks it is less politically damaging for them to cut local government funding than to cut central government spending. Therefore over the past 15 years local government budget cuts were even bigger than central government cuts. Local governments also cannot easily increase taxes (there are constraints on how much council tax, the main tax, can increase), so eventually local governments go bust.
@@lozkko Thank you for the information.
I do actually agree with your analysis. But quite frankly. F off. I work hard. 60 maybe 70 hours a week. If my business succeeds, great. But if it doesn't i will get nothing. Why should my life be massively degraded for tiny tiny improvements in rhe lifestyles of people who are doing nothing? Who arrived here 5 minutes ago?
Well said
Because when a whole population is successful everyone is more likely to succeed. How is your business meant to succeed when nobody can afford your products or services. A strong economy is good for everyone economically.
And then you have all the things you don't yet gain from. It's easy to disagree until you need 100's of thousands of pounds worth of cancer care.
And as he said for the people arrived 5 minutes ago, but how much does the price of social care go up without them. Even more family inheritance paid on social care, and probably many simply left to die without labour
What are you talking about? The vast majority of people who "arrived here 5 minutes ago" are either students or workers. They pay taxes and out of pocket fees just to have access to our services. Who are these people that arrive here 5 minutes ago and do nothing? The imaginary people in your head? The overwhelming majority of benefit recipients are UK citizen who are either retired or disabled. Refugees are entitled to aid, but that comes from our Aid Budget, which doesn't go back in your pocket regardless of whether they receive that aid or not.
I don't know how much you're expecting your taxes to increase by to massively downgrade your life, but I doubt that will be the case. And I hope you know that whatever portion of money goes to these imaginary people is a tiny fraction of a fraction, compared to literally every other aspect of society.
If you have a constant stream of more people into a country then the availability of jobs goes down while the demand for resources goes up. Then the only thing that can happen is wages stagnate while prices increase. And of course crime, traffic, need for public services etc goes up which brings standard of living down. It is a spiralling race to the bottom that breeds resentment and distrust and increases tribalism while decreasing morale, and it is so obvious that will happen that either the people responsible are so grossly incompetent that they should not have power, or they are malevolent and should not have power!
And just wait until the combination of an improved AI and automation compounds these problems massively.
Homelessness? Roads, Piblic services? Supply not keeping up with demand creates higher costs and prices. What is the net migration rate in real terms?
Amazing video, you clearly explained current issues:) and how current police andnleft us in this state
Thank you for this video. I'm glad I left the UK four years ago, its situation is not sustainable
The issue isnt taxation exactly, its the circular nature of the economy & what the money is spent on. If the money is retained in the uk (purchasing goods and services in/from the UK) then it can stimulate job creation but if the money is wasted and/ or extracted from the uk then its going to make us all poorer (seems to be the trend, look at dividends growth, companies arent investing and growing they are extracting wealth from the uk and sending it to offshore shareholders (including from revenue from government spending). Taxation is important but the structural makeup of the economy will be what matters.
Could you do a video about SMEs under inflation and specially what winners there might be?
Nobody in the professional class cares about sme’s.
University have bankrupted themselves buy paying VCs £500k per year and claiming they have no money when really they are embezzling funds. More money via forein students has led to corruption in these institutions the worst offenders should be allowed to fail and we just pay and keep the most solvent ones.
Reducing migration, would lead to lower rents and higher local wages I have lived it in Western Australia.
This is what we need in the uk end the doom loop, raise living, standards, get more tax revenue and make the uk more attractive to skilled migration.
Not more low skill low wage individuals who end up choking public services and paying very little tax and contributing to the misery experienced by low income earners and the working poor in this country.
If we are going to have immigration we need a skills shortage list and only offer visas to match industry needs just like Australia does.
I would pay more tax if my wages increased, making me better off and allowing me to contribute more.
If you have a constant stream of more people into a country then the availability of jobs goes down while the demand for resources goes up. Then the only thing that can happen is wages stagnate while prices increase. And of course crime, traffic, need for public services etc goes up which brings standard of living down. It is a spiralling race to the bottom that breeds resentment and distrust and increases tribalism while decreasing morale, and it is so obvious that will happen that either the people responsible are so grossly incompetent that they should not have power, or they are malevolent and should not have power!
And jist wait until the combination of an improved AI and automation compounds these problems massively.
NHS would be in a much better place if it hadn’t been hugely throttled during vidcov.
It’s not as simple as more or less tax .
The problem of vidcov rising waiting lists was caused by too much government, not a lack of it.
Tax cuts are more beneficial any day, especially with cost of living crisis. We gotta think of ourselves after a point!
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it, "I pray that anyone who reads this will be successful in life
The response to this issue is actually simple. Here is the answer: restructure the government, house of lords elected by the public, the monarchy and system of peerage abolished. Land ownership reforms. City of London needs to come under control of Westminster. Transparency, no anoymous ownership of property, resources. Bring back heavy industry, mining etc. Increase competition by reducing red tap. The hardest part is challenging those who benefit from the current system.
£8 million a day on fake holiday makers but not for workers or pensioners.
If you go up and down the country one thing stands out if London were to fall England is done,most developing countries are built around one capital city having almost all the wealth which is recipe for disaster but the one saving grace here is low levels of corruption and some seemingly small distribution of wealth
Tax rates on the poor and middle class keep rising, but we have antiquated capital gains tax rules and the tories cut the top rate of tax. Redistribute the tax to the top that made a lot of money from covid rather than taxing the people at the botrom who are worse off since covid.
Why did you not talk about the amount of our taxes going towards servicing our debt? That seems pretty important here as it is dead money.
I am in favour of raising taxes. Mostly on the top percentiles of earners. And capital fains taxes.
I have never understood why capital gains tax is lower then income tax.
Because it is taxing the gain of an asset that you bought with post-tax income. A double tax, if you will.
Inheritance tax is a triple tax
Management is essencial.. how much was spent changing all the signage to reduce the speed limits in the cities.. and putting down speed cameras everywhere.. do we really need to be controlled by technology with a massive spending on these tech systems? Wouldn’t it be better to put that money on education? It shows the reduction on defence, but they spent 17BL on aircraft carriers.. wouldn’t this more useful to build a couple of so needed motorways on the South and North of London to reduce the traffic on the M25 and consequently the pollution around London? Why do I have to take the M25 to go from Canterbury to Brighton or Portsmouth? Or to go from Ipswich to Bath? And the decrease of the economical growth! Didn’t you think that leaving the common market would affect that? Europe is one of the biggest markets in the world right next door and the English politicians decided it was better to leave it!? Yes, the politicians because they lied and manipulated the information so it could happen.. the referendum was consultative not binding, with only 3% difference and they still run for the hills with it!! What about the enormous cleavage between salaries? Why are people getting payed above £100k per year to be managers in public services? Why did we sell some of the biggest business assets of any developed country, like the energy (electricity, fuel, gas) and water? Can you imagine the amount of revenue a country has lost by giving these profits away? We better start looking at causes and solutions.. putting people against the wall to pay more taxes without a thorough study of the options and solutions, I think is quite irresponsible, manipulative and demagogue.
The tories have slashed funding for the NHS and other public services since 2010, cut funding to its lowest levels in real terms adjusted for inflation in well over 40 yrs.
I honestly think we need to reconsider education to a massive extent. Does not prepare you at all and is really not relevant to actual work and companies now no longer provide training and very rarely support for any new graduates. Then they're all encouraged to move to a different company or industry to get a pay rise every year then we wonder why the economy isn't growing and specialisms seem to be Declining in favour of project, sales, marketing, management and generally more broad oversight vocations than doers.
What you're not identifying is the gross disparity in the taxation of work not wealth. I pay approaching 50% tax on wages of £65k while my brother in law with his £22m mansion in London and £10m villa in Majorca pays a marginal rate of under 10%...
It isn't fair but nobody except the Greens wants to talk about it...
Shorter waiting lists mean that people who are of on long sick get the help they need quick and get back to work quicker and the quicker they are back to work the quicker they are back to paying taxes. Cut backs on NHS is the stupidest thing any government has done
Couple of things you didn't mention. Rent controls as a way to stop paying out as much in housing benefit, improve peoples cost of living and it may also encourage a firesale by buy to let landlords bringing more properties up for sale.
Second you mention taxes as if it was one big blob, but what about aligning CGT to income tax and NI rates. What about aligning taxes on divdends and adding NI? what about a wealth tax charged on properties over say £1m?
There are lots of choices that can be made
Not all taxes or tax rises are made equal.
Taxes for ordinary working people and small businesses need to come down or at least be frozen. Taxes for the wealthiest in society, particularly multimillionaires+ and large corporations need to be significantly increased.
Income and wealth inequality is largely to blame for the problems of today, the number of billionaires has more doubled since 2010, but poverty and homelessness has risen sharply at the same time.
Raise the income tax threshold to £21k so that people working the average full time 35 hours a week on minimum wage aren't paying income tax any more.
Raise the threshold of inheritance tax to anything over £1 million. £325k is far too low these days.
Raise the top rate of income tax from 45% to 60%.
Raise corporation tax to 30% with exceptions for small businesses.
Bring in a annual wealth tax of 3% of all wealth over the value of £10 million.
Simplify the tax system and close all loopholes, harsher penalties for the worst tax evaders.
Corp tax can’t be raised again. 25% is plenty
@@IceValley388 Corporation taxes in general have been too low for too long, especially considering how much has been privatised.
They ranged between 52% to 35% under Thatcher. 33% to 30% under Blair.
30% is perfectly reasonable when large corporations are raking in hundreds of billions a year while ordinary people struggle more than ever. Remember Corporation tax is only levied on profits, not revenue.
@@Jordan-fd6cx loopholes around corporations not paying a fair share of tax should be closed. We have high street shops vanishing out of thin air. Higher corp tax not the answer
@@Jordan-fd6cx raising corp tax sounds great, but in reality it will just lead to even less foreign investment and existing corporations will just leave the country. Both consequences will do more to hurt the economy than any increase in short term tax revenue might help. Economic theory has shown that decreasing corporate tax has actually led to increased overall tax collection due to much higher economic activity, which is subject to sales tax, etc. You'd be better off taxing the benefactors of corporate success than taxing the company itself, like shareholders or the income of the highest earners. Unfortunately, the solution isn't going to be as simple as a magic fix of changing a number here or there.
@@Jordan-fd6cx The higher corporation tax is, the more worthwhile it is to lobby for exemptions. MPs do what their lobbyists tell them. We will raise more tax if we cut Corporation tax
Several graphs are very misleading , I advise anyone watching to carefully read each of the graph titles as they do no match up with the narrative. Some graphs need other information for them to make any sense.
Can’t starve yourself to greatness.
But you can lose weight to get healthy
@@juliantheapostate8295 need fat for that. No fat left, the UK is cannibalizing muscle mass.
if they rejoin the common market there will be a large GDP boost which could raise corp tax and lower other taxes
Today, 21st August '24,the Tories are still saying that their handling of the economy was fine. Old Tory Chancellor Reggie Maudling had the honesty, when handing over to Jim Callaghan, to apologise for the mess.
So long as the police are driving around in new BMWs, ULEZ cameras being bought and replaced at significant cost, rainbow pedestrian crossings being built, HS2 being built at fantastic cost despite no public desire for it - I could go on
Then we have plenty of money, we are just wasting it on things we don’t need and overpaying for things we do need.
Tax the poor and borrow from the rich. Thats the method we have had past 50 years. Austerity only hits the poor, but the poor are empty. Theres only 1 clear thing to do
6:41 the clear trend is up, why would it just magically start going down?
There is no money and no plan. The British politicians have based their decisions not evidence, but on expediency and dogma. Taxes can be a benefit to the community and the economy, look at the Nordic model. British management is no better, how many companies only started to make a profit under foreign ownership? What is this British exceptionalism based on?
I want to pay more tax for working services. I worry the issue is that much of the service is privatised and my money is going into profit for these publicly owned companies. I think the only answer is to publically own much of our services and any money of profit should go into investing and improving it. But maybe this is also false economy it would be good to know if this is a viable option.
Yes, but we only need more imported NHS workers due to the pressure put on it by mass immigration, so immigration creates the need for immigration.. Who woulda thought? It's a downward spiral.... The mass importation of an economically low yielding socially hostile demographic that doesn't pay in but still demands the rights to free healthcare and shelter that requires ever more money to be spent on staff to serve them.
Also, from a leftist perspective, stealing the educated skilled medial staff from less developed countries is morally evil and a form of economic colonisation. Every country should be training their own, not plundering less developed countries of their educated class because they are cheap to buy.
Its amazing that in the world of cryptocurrency there are projects that still haven t realized that UNIMANTIC PROTOCOL is going to be even cooler.
scammer
I think one mindset that has to be got rid of (not saying you fall into this) is this silly idea that you can either have a good economy or a good social services. When as has been proved time and time again, a good social services boosts the economy. The economy is made up of people, you need to save the people to save the economy.
Increasing taxation for better public services, health care etc is always good as long as it doesn’t affect people’s quality of life. Right now, working class people cannot squeeze one single penny more out of their wallets but the rich have never been richer. Combining income tax and capital gains tax so that rich people pay their fair share of tax will go a long long way to fixing UK’s problems. Conservatives will never do this as they are still following the trickle down economics where they give everything to the rich and expect them to pass down their wealth, we know that does not happen. Labour are saying they won’t increase tax on the rich but there’s a high chance that they will based on their past ideologies. We can only hope.
Increasing the skyrocket high taxes even more is never the answer. Uk has one of the highest taxation for middle class in the world. Many have left, many more will. But I have to say that Brexit was a brilliant move, now people are being stuck on this gloomy island.
Economic crisis facing Britain England London can be fixed by Labour government this get voted in by Pietro Boselli Italian who British citizen Londoner. Awesome. Well said. Spot on. Austria Better system cash benefits compare to Britain.
How much would stop paying out to support other countries bring back as revenue?
2022 the UK governments uk aid spend document details 1.1 billion. Goes a long way let alone the principal of giving to India (has a more advanced space programme than us) and north Korea (don’t need to justify this concern)
Great video as usual. Do you if the “retired early” group of people are included in the out of work stats? In other words, is everyone under the age of 66 automatically counted as should be in work?
If you're not looking for work (e.g. just traveling or raising kids or living your best life, etc) then you're "economically inactive". You have to be working age and actively seeking work to be considered unemployed. I think this is measured by a national survey, rather than info from the job centre or anything like that, but I'm not 100% sure how they measure it.
@@LabradorsAreGoodDogs That's the unemployment rate, correct.
The Labour force participation rate is the more useful measure, I feel
someone that puts in to the system £1k per year, takes out £10k per year in public services, deserves to get £20k per year worth of public services. because "public services must work innit". this is your logic.
I'm voting Labour hoping they spend more.
There are obviously some easy tax rises that will help labourers.
1. Council tax reform (great for us outside of London)
2. CGT in line with dividend rate and income brackets.
3. Remove national insurance and increase income tax a couple percent to balance the shortfall.
4. No more free bus pass for over 60's
5. Pension and minimum wage both triple locked.
6. Force companies to take out group PMI, giving workers less time off work for illnesses and faster treatment.
7. Auto enrolment increased slowly up from 8% to 20% over the next 5 years.
Just have higher taxes and and worst services
Instead of raising taxes and spending more, what about greater diligence of the people in charge of the NHS? Why can't we vote for them?
we effectively get that because the income tax bands haven't changed for years. Inflation though...
Continual growth is a mathematical impossibility, how about we bin growth target & shrink instead.
I can't believe 'Right To Buy' still exists! It just doesn't seem fair. Those who are lucky enough to win a Council House then get a massive discount which they can then sell on for more.
I hope Starmer gets rid.
Tax cut or public services that work. What public services work.
Taxes have to be reduced in order to make the poorest more prosperous which will provide more tax revenue to spend on public services by levelling up the poorest. However, this requires a cessation of new benefits claimants who require housing…
Alongside this other measures will be necessary. Here’s my plan…
1. End net zero. Invest in green technologies thru tax incentives. Encourage, not enforce the switch over. It is important to switch for National Security. It is important to do this slowly for the economy.
2. A free level 6 qualification for those born in The UK (and living here for whole life) starting with qualifications needed such as healthcare. This will support working people providing job opportunities.
3. Mandate Banks to provide fixed rate whole term mortgages. This will support working people making them richer over time.
4. Freeze all state benefits for 10 years. What you receive today is what you will receive in 9 yrs. This will devalue them overtime and encourage a return to work that can be planned. Income will be maintained at that amount should you earn less during this ten years. This will discourage economic migrants as any benefits in real terms fall.
5. Public sector pay rises to be CPI+1% annually for 10 years. Strikes will require 80% service levels effectively ending strikes but requiring fairer solutions to maintain a workforce. This will allow better budgeting for managers and fix employment costs.
7. Children’s social care to be delivered through schools 52 weeks per year including free meals. This will protect children from benefits freezes and create jobs funded by the benefits freezes. Staff to provide more fitness and health orientated activities during current 13week breaks to raise aspirations etc.
8. All benefits claimants must undertake 16hrs pw voluntary work in order to receive benefits, unless medically exempt. Litter picking if necessary. This will discourage economic migrants and return people to the habit of work.
9. Tax the rich through corporation tax and / or UK turnover rather than profit. This will limit opportunities for clever accounting to avoid taxation.
10. Abolish 20mph zones and set national speed limit to 30mph unless otherwise stated. All revenue raised through fines to be used to fund children’s social care through schools. Police and Local Authorities must only use enforcement where it is actually necessary and not where it captures the most revenue. This will cost them to operate and ensure necessity and proportionality. Let’s remove fear of persecution from our roads and get the country moving again.
11.Remove the ability to reduce speed limits from local authorities. They have abused it and wasted public money doing so.
12. Points based immigration. We only allow in what we need. Or genuine asylum claims. Managed and processed in/from a 3rd country. Arrive here illegally and get deported. No arguments. To come here, you must want to assimilate, adopt a British way of life and accept modern Christian values.
13. No access to NHS or benefits unless legally in the UK, or paying privately / insurance etc. Full access only after 10yrs working and contributing to the Nation.
14. All monies transferred outside of the UK as gifts to be taxed at 40%. This will discourage economic migration.
15. A return to the Right to own firearms / arms for self defence. This will help to maintain the balance between citizen and state, and limit overreach. Every despot in history commenced with the disarmament of the population for their own “safety.
This is incredibly insightful - how do I vote for you? I disagree with everything you said, but I think it would be cool as flip to have a gun!!!
Thank you for your vote and honesty. If you disagree, lets see your plan…😉
@@beefy0978 tbh I agree with about half of it, but you seem to have the American conservative "pull yourself up by your bootstraps" vibe on NHS and benefits. Most benefits go to old folk
I'm loving these videos, you explain very well.
Honestly in the coming election I would vote for a tin of bakes beans if I thought it would fix this country. The place is an absolute joke.
Thank you for finally addressing the elephant in the room. The next government beat the Conservatives or labour or reform are going to have a hard job pleasing everybody. The Conservatives are keeping it together and slowly making progress. Changing The government now for one with a radical New approach is not going to improve things. we need stability not change in these difficult times. There are no easy answers. I think we should acknowledge these facts and understand that increases in quality of life that we have known for the last 30 or 50 years will not continue at the pace that we are used to.
For growth. We need to lift taxes off the back of workers (who create wealth) and onto land owners (who appropriate wealth) and the rest of the idle rich.
The underlying problem is that politicians cater to the mighty and the rich. They usually don"t care about the societal costs of their decisions. Can't be there helped under the existing system, though.
The answer to all the economy problems is INTEREST get rid of it and live peacefully
Right, so everyone who saves some money can have it destroyed by inflation.....
Surely the obvious way to boost national economic growth would be to join the neighbouring large barrier-free trading bloc… and rejoin Europe?
Excellent video
Numerous problems
Deregulation is the only lever left to create serious economic growth and increase tax revenues without raising rates.
Guess what? Bureaucracy costs! we needlessly waste money. Reduce the cost of the red tape and then we might get a savings in efficiencies and then more in the pot!
so where does aLL THE MONEY MAGICALLY APPEAR FOR BOAT PEOPLE HUNDREDS OF THOUSANDS OF THEM