Plain English with Derek Thompson The UK Is in Trouble: Economic Crises, Energy Shocks, and the Queen’s Death
Sep 8, 2022
Duncan Weldon, Britain economics correspondent at The Economist and author of '200 Years of Muddling Through,' joins to delve into the UK's current economic woes. He discusses how Russia's invasion of Ukraine has skyrocketed energy prices and inflation, leaving the UK facing a severe recession. The conversation reflects on historical economic stagnation, the impacts of Brexit, and the political chaos surrounding recent leadership. Weldon also considers how Queen Elizabeth II's death may shift the nation's political landscape amidst these crises.
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UK Economic Stagnation
- The UK's GDP per capita is lower than it was 15 years ago, despite being the birthplace of modern capitalism.
- This stagnation is puzzling, considering the UK's historical economic strength.
Current State of UK Economy
- The UK faces high inflation, falling real incomes, and a looming recession.
- Household disposable income is projected to experience its largest drop since the 1950s.
Impact of Ukraine War on UK Energy
- The war in Ukraine worsened Europe's existing energy crisis, impacting the UK despite its low reliance on Russian gas.
- UK energy bills have doubled, impacting households and businesses significantly.
