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The Economics Show
What’s wrong with Britain’s economy? With Sam Bowman
Nov 28, 2024
Sam Bowman, founding editor of Works in Progress and an expert in UK economics, dives into Britain's economic struggles. He discusses how restrictive investment policies have led to stagnation, with soaring housing and energy costs compared to France and Germany. Bowman examines Brexit's impact, the challenges posed by rising energy prices on manufacturing, and the urgent need for transformative policies. He advocates for radical changes in urban planning and energy solutions to boost economic growth and infrastructure.
37:04
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Quick takeaways
- Britain's economic stagnation is primarily attributed to restrictions on housing investment, impeding growth and public services for over 15 years.
- High energy prices coupled with inefficient infrastructure development create significant barriers to competitiveness and economic advancement in the UK.
Deep dives
Impact of Housing Investment on Economic Growth
Banning investment in housing significantly contributes to Britain's economic stagnation. Addressing the issues surrounding building houses is seen as a critical factor for economic growth, potentially lifting the economy for at least a decade. Market constraints on house building also hinder public services, making improvements more challenging. If building constraints are alleviated, the increased availability of housing would likely stimulate economic growth and innovation.
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