Decent analysis. People should get involved in economic strategies as part of long term investment. Public and private organisations should encourage this to happen. UK need to get past Brexit and pandemic asap. If not current miserable living conditions will deteriorate.
When Anna states that overall GDP growth results in greater returns for investment in public services is there a defined understanding of this in terms of the amount of growth vs returns? The UK seems to have a fairly well developed industry of financial advisors one of whom's main jobs is to limit the amount of growth that is actually returned to public services from firms and individuals.
Spend less, invest more. And for God's sake cut regulation. We spend our time filling in forms rather than sales development. We wrote down the additional regulations in the past 10 years in our sector one weekend and much was explained about why we're working harder to stand still.
I saw a recent video talk by another financial think tank. They were talking about how to cut the national debt. Two things were suggested but they both revolved around increasing GDP. The first was as a result of inflation which might come about by BOE action. The other was by high immigration and there was a suggestion that the government has not seriously attempted to control immigration for that reason. I'm not an economist. I'm just trying to understand better.
@@kevoreilly6557 I agree this was a whole lot of mambo jumbo. It seems like this "expert" doesn't really understand the global economy or growth/productivity.
It is clear really, as an island, importing raw materials and manufatcuring and then shipping out all add to the cost of a product, services do not have that handicap and this is why UK services exports are growing now the UK is free of the EU and its draw that in effect restricted a companies focus to EU markets, now business is forced to look further afield and this process continues and grows the industry, for the UK.
You’re joking, right? Give up a market with 350 million consumers next door and sigh a deal with a much smaller population half a world away. But of course you knew that so were commenting satirically of course.
@@rogerterry5013 are you saying the UK is unable to export manufactured goods to the EU and its 350m peoples... LOL you are a silly one mate, go and tell that to Nissan who still export 40% of their cars to Europe..lol
Astounded, Have you guys not looked at the cost of power? It’s 3x that of france/Germany 5x more than the US. And we wonder why our industrial output is weak? And why we don’t produce anything? The reality is the government is determined to undermine manufacturing in the UK. And now…. net zero will be the death nail. I’m so glad I’m leaving, the problems are so deep but no one recognises the root cause. Then one thing i know is whatever the state does, they will endeavour to make it worse, either by incompetence or deliberate.
Why would businesses borrow to invest when they learned after the 2008 financial crisis & recession, that the government will no longer support aggravate demand in the economy after a deep recession?
Growth isn't an important metric, neither is productivity, when it is a product of an economic system based around multi national corporations. Productivity numbers have been fudged repeatedly by previous governments, such as the encouragement of zero hours contract, which further increasesed job insecurity and employee power. Armchair Economists obsessing over what are largely demographic shift issues, not to mention the reducing validity in measuring output in hours spent at a job when working in the digital sector, and the increase in efficiency that the individual is able to achieve due to the exponential nature of digital technology development curve, blows my mind. Being obsessed with outdated metrics is one of the main things that holds back progress in modern economic sciences. Many people of the working class will work all the hours they are given, when the pay makes sense. Reducing the disposable income of the working class already wasn't very imoactful to bottom lines because they were already strapped. Now it's eating the middle class, and as a result will reduce the standard of living countrywide. I got 14 minutes through this, and realised she had absolutely none of her own ideas. It was like listening to an a level exam script of an A Level student
It's an educational podcast, it's about explaining these concepts in a way that non experts can grasp, not about presenting cutting edge research. New ideas and more nuanced discussions are for the journals.
She cites need for "supportive public sector investment to help crowd business investment in". Oh no, can't have that. The IFS would be all over the media scaremongering about debt.
Specialization of the economy in a world on the path of deglobalization, and maybe a world war, is not 'good' long-term planning. Sure a few people can get very rich in the short term, but as things unravel that wealth loses it's value.
Because common law democracies are the most successful cultures in human history. England and then the UK alone changed the entire planet. That was because of common law and property rights - something the EU doesn't have. It is why they are not as free (recent times are not guide to the long-term norms) have an appalling track record of start-up businesses and asset wealth that is secure from government. It is why inventions happen overwhelmingly in the English speaking world (still today). Then we have habeas corpus and the right to trial by jury (again, something the EU doesn't care for). The list is endless. In the end it comes down to one thing - Self-governance. I want decisions made in Britain made by those elected in Britain, not by a foreign government with no understanding of our legal, political and economic model.
Whilst measured productivity has slowed, the UK economy has outgrown all but 2 countries in the G7 since 2010 in absolute terms and in terms of GDP per capita (PPP at constant prices). I therefore believe that we need to re-examine how we measure productivity and the role of investment in the UK economy. I suspect that that some EU countries understate the number of hours worked and thereby overstate productivity. Similarly, I think that capital investment plays less of a role in the UK because of the importance of services to the UK economy.
Growth for growth’s sake is the ideology of the cancer cell. Our economy is getting better at satisfying desire (OLED television, deliveroo slop, etc) but the quality of the British people has declined.
Its a bit limited to think that the UK got off lightly on Brexit due to mainly trading on services that arent as affected.Aside from the fact it will pose a risk for them in future, the fact that both import and export supply chains for goods are messed up will be affecting people in a negative way.
So tired of all these @@$@ with Oxbridge accents The slowdown is easy to understand - no investment, bad tax regulations and and arrogant middle upper class
With little to no help from politicians, high taxes, complex bureaucracy, a disillusioned workforce, high raw material and energy prices, manufacturing will fail. There will then be no home grown green tech. Who knows what the ruling party will do , so there’s no plan, high risks with investment, so no growth. Fewer companies will start up and the U.K. will decline. Short term goals with no long term strategy. I don’t see a positive future for the U.K. economy and have taken steps to protect finances to date
A rather naiive analysis of the discrepancy in generational wealth. It's due to a system in which wealth accrues wealth and does not reward work in equal measure or tax.
Most jobs in Britain over the past 14 years (outside of finance and property) at least have not paid enough to allow individuals to buy assets that generate wealth the biggest asset being housing. Older people acquired housing easily through a combination of higher/growing wages, the state building enough housing, lower immigration and free education. This same generation has voted for parties that have not provided young people with the same opportunities. This is a huge reason for inter generational inequality
"The UK is not the world's 6th largest economy. London is. The UK is a poor country attached to London." The UK has the 'Dutch Disease,' with London's financial services standing in for the gas in the Dutch case. Over time, this has led to the hollowing out of the British economy. Who, after all, wants to invest in more productive facilities when the prospects of making a profit are vanishingly small? The underlying source of the problem is the currency union of London and non-London, which not only makes UK goods exports dearer and hence less competitive, but also makes everything imported cheaper and therefore more competitive than its UK-produced equivalent. The remedy is separate currencies for London and non-London. Design a new currency and introduce it over a three-day holiday. Suddenly the prices of non-London products reflect their actual costs. Exports rise and imports are increasingly priced out of the market, replaced by domestic goods. Win-win.
@@kevoreilly6557 Incorrect. Exports are up, they are just knowledge based and not all finished goods. However, the UK could be doing so much better without quangocrats dining on michelin starred meals at the taxpayers' expense. We have a Net Zero energy policy that is crippling us for no good reason. Expensive energy = slow growth.
@@Chris-pq3wp : Crime is happening, and it is not being stopped.... That goes from even the church... being scammed... and nobody cares. Since the publice purse is meant to be saved here. And even .... the price of food.. is not calculated correctly. Cos SME are basically doubling, and hoarding items... and even gone as far as actually... scamming one another too ???..... People are scamming cities, towns.... and depressing areas.... Crippling and robbing those regional budgets. Some gone as far as into private tax receipts etc...
Decent analysis. People should get involved in economic strategies as part of long term investment. Public and private organisations should encourage this to happen.
UK need to get past Brexit and pandemic asap. If not current miserable living conditions will deteriorate.
When Anna states that overall GDP growth results in greater returns for investment in public services is there a defined understanding of this in terms of the amount of growth vs returns? The UK seems to have a fairly well developed industry of financial advisors one of whom's main jobs is to limit the amount of growth that is actually returned to public services from firms and individuals.
Spend less, invest more. And for God's sake cut regulation. We spend our time filling in forms rather than sales development. We wrote down the additional regulations in the past 10 years in our sector one weekend and much was explained about why we're working harder to stand still.
I saw a recent video talk by another financial think tank. They were talking about how to cut the national debt. Two things were suggested but they both revolved around increasing GDP. The first was as a result of inflation which might come about by BOE action. The other was by high immigration and there was a suggestion that the government has not seriously attempted to control immigration for that reason. I'm not an economist. I'm just trying to understand better.
Very good analysis. I enjoyed this episode.
@@kevoreilly6557 I agree this was a whole lot of mambo jumbo. It seems like this "expert" doesn't really understand the global economy or growth/productivity.
It is clear really, as an island, importing raw materials and manufatcuring and then shipping out all add to the cost of a product, services do not have that handicap and this is why UK services exports are growing now the UK is free of the EU and its draw that in effect restricted a companies focus to EU markets, now business is forced to look further afield and this process continues and grows the industry, for the UK.
You’re joking, right? Give up a market with 350 million consumers next door and sigh a deal with a much smaller population half a world away. But of course you knew that so were commenting satirically of course.
@@rogerterry5013 are you saying the UK is unable to export manufactured goods to the EU and its 350m peoples... LOL you are a silly one mate, go and tell that to Nissan who still export 40% of their cars to Europe..lol
And Japan is a basket case!
@@Steven-jx7ch And yet it is the third biggest economy in the world 🤣 some basket case 😆😆
Astounded, Have you guys not looked at the cost of power? It’s 3x that of france/Germany 5x more than the US. And we wonder why our industrial output is weak? And why we don’t produce anything?
The reality is the government is determined to undermine manufacturing in the UK.
And now…. net zero will be the death nail.
I’m so glad I’m leaving, the problems are so deep but no one recognises the root cause.
Then one thing i know is whatever the state does, they will endeavour to make it worse, either by incompetence or deliberate.
Why would businesses borrow to invest when they learned after the 2008 financial crisis & recession, that the government will no longer support aggravate demand in the economy after a deep recession?
Growth isn't an important metric, neither is productivity, when it is a product of an economic system based around multi national corporations.
Productivity numbers have been fudged repeatedly by previous governments, such as the encouragement of zero hours contract, which further increasesed job insecurity and employee power.
Armchair Economists obsessing over what are largely demographic shift issues, not to mention the reducing validity in measuring output in hours spent at a job when working in the digital sector, and the increase in efficiency that the individual is able to achieve due to the exponential nature of digital technology development curve, blows my mind. Being obsessed with outdated metrics is one of the main things that holds back progress in modern economic sciences.
Many people of the working class will work all the hours they are given, when the pay makes sense. Reducing the disposable income of the working class already wasn't very imoactful to bottom lines because they were already strapped. Now it's eating the middle class, and as a result will reduce the standard of living countrywide.
I got 14 minutes through this, and realised she had absolutely none of her own ideas. It was like listening to an a level exam script of an A Level student
It's an educational podcast, it's about explaining these concepts in a way that non experts can grasp, not about presenting cutting edge research. New ideas and more nuanced discussions are for the journals.
She cites need for "supportive public sector investment to help crowd business investment in". Oh no, can't have that. The IFS would be all over the media scaremongering about debt.
Specialization of the economy in a world on the path of deglobalization, and maybe a world war, is not 'good' long-term planning.
Sure a few people can get very rich in the short term, but as things unravel that wealth loses it's value.
Join the EU. Or explain why not.
Because common law democracies are the most successful cultures in human history. England and then the UK alone changed the entire planet. That was because of common law and property rights - something the EU doesn't have. It is why they are not as free (recent times are not guide to the long-term norms) have an appalling track record of start-up businesses and asset wealth that is secure from government. It is why inventions happen overwhelmingly in the English speaking world (still today). Then we have habeas corpus and the right to trial by jury (again, something the EU doesn't care for). The list is endless. In the end it comes down to one thing - Self-governance. I want decisions made in Britain made by those elected in Britain, not by a foreign government with no understanding of our legal, political and economic model.
Whilst measured productivity has slowed, the UK economy has outgrown all but 2 countries in the G7 since 2010 in absolute terms and in terms of GDP per capita (PPP at constant prices). I therefore believe that we need to re-examine how we measure productivity and the role of investment in the UK economy. I suspect that that some EU countries understate the number of hours worked and thereby overstate productivity. Similarly, I think that capital investment plays less of a role in the UK because of the importance of services to the UK economy.
Thank goodness you stopped the annoying and distracting background chimes after the intro.
Thanks for another good video.
Just waffle, vagaries and no data. Our country doesn't make anything that others actually want.
GDP says nothing about quality of life.
Growth for growth’s sake is the ideology of the cancer cell.
Our economy is getting better at satisfying desire (OLED television, deliveroo slop, etc) but the quality of the British people has declined.
Could this be because of decades of Immigration policy biased toward unskilled cohorts while deterring talent and hard working groups?
Its a bit limited to think that the UK got off lightly on Brexit due to mainly trading on services that arent as affected.Aside from the fact it will pose a risk for them in future, the fact that both import and export supply chains for goods are messed up will be affecting people in a negative way.
So tired of all these @@$@ with Oxbridge accents
The slowdown is easy to understand - no investment, bad tax regulations and and arrogant middle upper class
With little to no help from politicians, high taxes, complex bureaucracy, a disillusioned workforce, high raw material and energy prices, manufacturing will fail. There will then be no home grown green tech.
Who knows what the ruling party will do , so there’s no plan, high risks with investment, so no growth. Fewer companies will start up and the U.K. will decline. Short term goals with no long term strategy. I don’t see a positive future for the U.K. economy and have taken steps to protect finances to date
A good discussion. Wanted to know more about neoclassical growth models such as Harrod Domar and Solow, etc.
A rather naiive analysis of the discrepancy in generational wealth. It's due to a system in which wealth accrues wealth and does not reward work in equal measure or tax.
Most jobs in Britain over the past 14 years (outside of finance and property) at least have not paid enough to allow individuals to buy assets that generate wealth the biggest asset being housing. Older people acquired housing easily through a combination of higher/growing wages, the state building enough housing, lower immigration and free education. This same generation has voted for parties that have not provided young people with the same opportunities. This is a huge reason for inter generational inequality
Great analysis. Thanks.
Net zero and the stupid greenie regulations is the problem not anything good 🤦♂️ only adds cost 💲 zero benefit
It’s not maths that will save us, it’s English, sadly we can’t speak it proper like, innit!
Every economist gets it wrong, and never believe 'an expert' who has never ran a business.
"The UK is not the world's 6th largest economy. London is. The UK is a poor country attached to London."
The UK has the 'Dutch Disease,' with London's financial services standing in for the gas in the Dutch case.
Over time, this has led to the hollowing out of the British economy. Who, after all, wants to invest in more productive facilities when the prospects of making a profit are vanishingly small?
The underlying source of the problem is the currency union of London and non-London, which not only makes UK goods exports dearer and hence less competitive, but also makes everything imported cheaper and therefore more competitive than its UK-produced equivalent.
The remedy is separate currencies for London and non-London. Design a new currency and introduce it over a three-day holiday. Suddenly the prices of non-London products reflect their actual costs. Exports rise and imports are increasingly priced out of the market, replaced by domestic goods. Win-win.
But exports are at a record high..
Real exports have not … in fact they are essentially flat since 2010
@@kevoreilly6557 Incorrect. Exports are up, they are just knowledge based and not all finished goods. However, the UK could be doing so much better without quangocrats dining on michelin starred meals at the taxpayers' expense. We have a Net Zero energy policy that is crippling us for no good reason. Expensive energy = slow growth.
@kevoreilly6557 wrong , the uk is now exporting large amounts of liquid natural gas to europe that it was not before the ukraine war
@@Chris-pq3wp : Crime is happening, and it is not being stopped.... That goes from even the church... being scammed... and nobody cares. Since the publice purse is meant to be saved here. And even .... the price of food.. is not calculated correctly. Cos SME are basically doubling, and hoarding items... and even gone as far as actually... scamming one another too ???..... People are scamming cities, towns.... and depressing areas.... Crippling and robbing those regional budgets. Some gone as far as into private tax receipts etc...