Is Britain Falling Behind?

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Publicado 2024-04-24
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British stocks closed at an all-time high this week, but as exciting as a new all-time high might sound, the British stock market has been lagging US and European stocks since the Brexit referendum.
A recent report from Goldman Sachs says that the British economy is 5% smaller than it would have been had it remained in Europe.
The IMF last week listed the UK in its Fiscal Monitor publication as one of four large economies that “critically need to take policy action to address fundamental imbalances between spending and revenues”.
In this week's video we ask what has gone wrong in the UK, and can it all be pinned on Brexit?

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Papers Mentioned In The Video:
Dimson Marsh & Staunton Global Investment Returns Yearbook: www.ubs.com/global/en/investment-bank/in-focus/202…
Broadberry & Irwin - Labor productivity In Britain & America During The 19th Century: www.nber.org/papers/w10364
Schroders - Six Charts on UK Equities: www.schroders.com/en-gb/uk/intermediary/insights/s…
Rathbones - The Non Patriotic Case For UK Equities: www.rathbones.com/knowledge-and-insight/investment…
Meghan Greene - Markets must stop comparing the UK and the US: www.ft.com/content/13579c61-5e1f-48b5-bb4d-2dc7874…
Robert Armstrong - UK stocks are not all that cheap: www.ft.com/content/80d7f1de-dcb7-46c9-be5a-32b73c9…

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Todos los comentarios (21)
  • @glassmuxxic
    Who would have thought a country that spent decades building nothing, orienting policy and the economy around the whims of elderly people and elderly businesses at the expense of young and working people then imposing tariffs on itself would fall behind...
  • @s4098429
    My elderly cousins live on a state subsidised sheep farm in the UK, they have 8 sheep. Here in Aus you need a minimum of 2000 sheep to make a living. The UK is paying millions to have its most productive land used as a theatre set piece so pensioners can play make believe. Insane.
  • @phillip5245
    The Ukraine war has also probably cut into some of The City's oligarch money laundering business.
  • @burn_out
    Britain has fallen, billions must eat fish and chips
  • @DisFantasy
    Sounds like British investors don't want to invest in Britain.
  • @georgeh6856
    I am not from the UK, but I think the picture of a head of lettuce with eyes on it is about former Prime Minister Liz Truss. That is so disrespectful. I mean, lettuce actually has a purpose.
  • @J1M1F
    Housing affordability…if young people have little hope of moving out of parents home, starting a family and owning their own home, where’s the motivation to work?
  • @Deany3791
    Hi, young educated professional Briton here. I can speak on low productivity in my experience. Salaries are so low for skilled jobs relative to the cost of living there is absolutely no incentive to progress or put in effort. Our generation are sacrificed at the alter of maintaining over inflated house prices
  • @AdamTaylor-tw2vm
    It's a nation of landlords. Produce nothing but take as much as possible from each other. Most successful one gets their face on the money.
  • @cloudycolacorp
    I don't blame people for just giving up. Work as an expendable asset and hand most of your pay to a landlord, infrastructure crumbling and healthcare a struggle to get. At some point, they are just going to have to offer workers a better deal
  • @MK-13337
    England is similar to a hypothetical country where you took Poland and put New York in it. It's a poor country surrounding a financial megacity.
  • @drew2pac
    I had a relative visit me in UK from Luxembourg. They were born here too, but were saying how depressing the UK is - and it get worse each time they visit. It feels like people are giving up, angry, and the country is falling apart. He works in VC, and UK is just no longer really relevant in the EU... You never really hear that when living here.
  • @10secondsrule
    I was working for 20 years in the architectural practices in the U.K. and I can say this was the least productive environment to be in. I could have finished my job in 4hrs max on most days but was forced to match my pace to the rest resulting in 8-9 hours days. Absolutely inefficient and stupid way of working. I also had to beg for over 2 years for a faster pc and second screen which was refused due to… the office policy and everyone being treated the same - even when my job was the most demanding, graphic intense work of them all. Stupidity beyond any measure.
  • @GeraldL8
    The issue of the British labour market makes no sense to me. SO many students (international and domestic) are applying for jobs during and after higher education. Yet many don't get employed. The companies themselves aren't helping matters because they don't want to invest in training new graduates but instead want finished products.
  • @davegubbins4428
    Will NO ONE think of the UK's tax havens? Oh, the humanity !
  • @RihardsDel
    Britain (excluding London) is falling massively behind. You only need to check the insolvency numbers is SMes
  • Remember those guys that claimed that Brexit would give the UK more power to handle its economy and allow it to negotiate better trade deals with countries like the US.
  • @owendavies8227
    The reason Britain is falling behind is because of lack of innovation. I tried to start a business in the UK but red tape eventually forced me to give up and I am doing more or less the same thing in the USA but did not get held up (at least not to the same extent).