Is Britain Falling Behind?
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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: https://www.ubs.com/global/en/investment-bank/in-focus/2024/global-investment-returns-yearbook.html
Broadberry & Irwin – Labor productivity In Britain & America During The 19th Century: https://www.nber.org/papers/w10364
Schroders – Six Charts on UK Equities: https://www.schroders.com/en-gb/uk/intermediary/insights/six-charts-that-show-just-how-cheap-uk-equities-are/
Rathbones – The Non Patriotic Case For UK Equities: https://www.rathbones.com/knowledge-and-insight/investment-update-non-patriotic-case-uk-equities
Meghan Greene – Markets must stop comparing the UK and the US: https://www.ft.com/content/13579c61-5e1f-48b5-bb4d-2dc787444fb3
Robert Armstrong – UK stocks are not all that cheap: https://www.ft.com/content/80d7f1de-dcb7-46c9-be5a-32b73c9c071e
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32 Comments
Check out Eight Sleep and unlock $200 off using my link: https://www.eightsleep.com/boyle/
As an Irishman, you must be devastated, Mr. Boyle 😢
Britain has a culture of absolute apathy. Driven by incompetent civil services and utterly self serving politicians who all attended the same education circles.
Even England voted against joining the European Union .
The government and investment financing pretended it never took place.
English have absolutely no say in their countries' affairs.
The realities of Big Brother.😮
As a random person in the UK. What can I do to at lest help ?
Brixet worked a peach …
Like the title, 😂 we all know Britain could be designated as a borderline 3rd world country now.
That’s like asking if Atlantis has a flooding problem.
Did we need that much of analysis to know that Britain is falling behind? Comparing to railroads & stock market from 1899? UK has been just surviving after WW-2, punching way above its weight. In another statistic, that might be more relevant in the years to come, The British army is 80,000 strong! Yeah, right. Just saying…
Thank you. Those opposed to Brexit are over-represented in British news media and power elites, and that fact therefore skews the causes attributed to other things.
The UK government has meddled in many businesses to the point they have no faith operating here. Our energy cost/infrastructure is appalling and highly expensive yet the UK government blocked Shell from developing the Jackdaw gas field in the North Sea and also banned hydraulic fracturing both would have contributed to much lower gas prices. Regulation is a huge problem but so are high energy prices, why set up a business here when you can make things elsewhere much cheaper.
BREXIT Broke it, Baby
When Margaret Thatcher gutted the education sector many universities lost project R&D to overseas offers. A report out some years back, sorry I can't remember exactly stated that the loss to the UK in patents and associated revenue was in the 10s of billions. It's well known education is the foundation of wealth in a country.. the UK education sector has not recovered from that barbaric act.
Like if you Swift Walk to work.
Im from germany and honestly in there is an Economy which really is falling behind its the german… but over all I believe over the next decade wie will see stagnation in the european Economys (over all at least) and a widening gap between the U.S and Europe… you guys should over all really be happy with your politicians on Both Sides and i mean that
The communist police will jail Patrick for hate speech.
Another YT channel pointed out that 1997 GDP for UK was larger than China and India combined. Wonder what happened?
Their decline started long before Brexit so lets not pretend.
told ya! the UK is falling behind and everyone else has fall off the cliff. what a disaster and it is all because of chyna chyna chyna! 🤦♂
They cancelled trade talks with Canada, so it doesn't seem like they're trying that hard to find new opportunities for value.
I love the way you can hear when the sponsor spot is in the video. Not from the words, but Patrick's tone sounds slightly positive for a time 😂 keep up the great work Patrick 🙂
Thanks Patrick. ANZAC Day today, 'lest we forget'.
Deliveroo is not a tech company. Its a worker rights evasion tool while telling its workforce they are fashionably participating in the " gig economy ".
is the sky blue
What do mean ME, a BRITISH pensioner who has 10 investment properties, 3 holiday homes and 1 castle has to pay more in property taxes to the EU now because of brexit!
Excellent, if depressing, video, Patrick. Thank you.
So the country shot itself in the leg with Brexit, has a workforce with skills that are less useful to economic productivity, and has underinvested in CAPEX vs other markets.
Also, they have terrible wages even if you have the skills they need and their healthcare system they so proudly point to is falling apart all while selling their residential property in desirable locations to foreign investors.
Sounds great. Sign me up.
I think Ray Dalio's theory of world empires explains the macro well. Britain was the previous empire, USA is the current and China is the up and coming empire. London is still riding the "aftertaste" of having been the world hub.
No no no, Great Britain is doing GREAT! Joyfully great! Well done!
Rip UK. We'll see you on the other side of the U and the K.
Cooked.
You have, like. One city.
Yes, UK is failed period.
the recent immigrant diaspora will cement UK downward spiral, as these do not arrive on based on merit like high education but rather opportunism