HOW TO DESTROY YOUR ECONOMY - FEATURING THE UNITED KINGDOM

 HOW TO DESTROY YOUR ECONOMY - FEATURING THE UNITED KINGDOM

The United Kingdom - A Developed Country with a rich long history and one of the largest growing economies in the world. With a GDP per capita well above 40,000 USD and a GDP over 3 Trillion USD, The United Kingdom certainly had the potential to break it into the top 3 largest economies in the world. But things haven't been going well in recent times for the UK. Firstly, BREXIT wreaked havoc for them, and Russia-Ukraine's war has added to the misery. Some of you'll be like- Hey, What's BREXIT?

Let me explain it to you in simple words.

 "BREXIT" means "BRITAIN EXIT" from the European Union (EU). Now, what is the EU? European Union(EU) is a union of European countries. France, Germany, Italy, Portugal, Spain, and 28 countries are members of this Union. These countries don't share a border and use Euro as a currency. The main intention of the EU was to ensure peace and stability among the European countries. European countries could trade easily among themselves without restrictions or hurdles, and The EU was the perfect platform for them to do that. The workers from different European countries could travel across Europe and hunt for better job opportunities. The European Union also has a parliament to frame rules and regulations. They make decisions, and it is up to the countries to follow them or not. But some of the decisions made by the EU have pissed off the people. Like the refugee crisis in 2015. The EU has asked the countries to take fixed amounts of refugees from Syria and Ghana. Many countries were against this idea and opposed the EU. There were some instances where the EU and the members couldn't get along. Britain didn't like the idea either, and many Brits opposed the intake of further refugees or immigrants. Britain's Right-wing Conservative party took advantage of this and told the people that they would bring Britain out of the EU. They conducted a referendum on this, and 52% voted favor of BREXIT. This move caused a lot of instability in the country. Britain has had three Prime ministers within four years - David Cameroon, Theresa May, and Boris Johnson. Having three prime ministers within four years speaks volumes about the instability in the UK. Finally, BREXIT happened on31st Jan 2020. BREXIT has had terrible impacts on the UK. People have started to lose their jobs due to a lack of investment from companies, and Britain had to face high tariffs on imports from the EU. A study reveals that Britain faced a 2.5% cut in the GDP due to BREXIT. Unemployment rose by 1.5%, and investments decreased by 6%. BREXIT was a disaster for the UK. 

The above was just one side of the coin. 

2022 is turning out to be a nightmare for Britain. Their longest-reigning monarch Queen Elizabeth II passed away on September 8th due to old age. Russia-Ukraine War has skyrocketed fuel and gas prices in the UK. Inflation is at a Forty year high of 9.9%. I repeat, the inflation in the UK is at a four-decade high and could even get worse in the coming months. The UK is at potential risk of recession, and in all this midst, the ruling Conservative party gets tangled in a political crisis. The leader of the Conservative party and the former prime minister of the UK, Boris Johnson was accused of throwing private parties in the middle of a severe lockdown. He flouted COVID-19 rules and caught up in some scandals. There were calls across the UK to force Boris to resign, and he did it in utter disgrace. So, the Conservative party leaders must vote for a new Prime Minister. UK's Foreign minister Liz Truss and Finance Minister Rishi Sunak were the final contenders for the Prime Minister race. After all rounds of voting, Liz Truss was chosen as the next Prime Minister. Everyone was hoping that she could turn around the fortunes of Britain and revive the faltering economy. But her plans have worsened the Economic condition, and now the UK is under a severe threat of recession, and the Government could get bankrupt. The UK's Pound is one of the worst-performing currencies, and its value dropped by 24.88% against the US Dollar. What were her plans exactly?? She introduced something called a "mini-budget" She said that her Government would keep a 400-pound energy discount for millions of households this winter and try to ease the burden of people. Even if rich people use more electricity and poor people consume less electricity, they will be charged the same. To generate revenue, if rich people consume a lot of electricity, they must be taxed more but not less. Power companies have started to incur huge losses, and the Government could spend 130 billion pounds on this scheme for the next 18 months. The Government also cut huge taxes on the rich and the big businesses. Let me explain it to you in a simple way. Liz thought that if she cut taxes on the rich and the billionaires, they would invest in the UK and bring more jobs to the UK. She is pursuing Trickle-Down Economics. If you cut taxes for the rich, they would invest in the country and create more job opportunities, and this would keep the economy sustaining. That was Lizz's policy. Seriously?? How on the earth would you think that would work?? The Rich would want to save as much as they can in the middle of a crisis, and if they really want to invest, they would rather invest in a place with cheap labor than an expensive one. Lizz's Trickle Down Economic policy was just a dumb gamble, and Rishi even warned about that. But no one took him seriously and just blatantly ignored him. Her policies were so shit that even the IMF had to interfere. 

The great Warren Buffett said once, "The rich are always going to say that, you know, just give us the money, and we'll go out and spend more, and then it will trickle down to the rest of you. But that hasn't worked the last ten years".

The whole summary of the story is that the UK is at risk of recession because of poor, incompetent, ridiculous, atrocious decisions. People are bearing the brunt of the idiocies committed by politicians. If they genuinely want to revive the faltering economy, they must act rationally and take up good economic policies. Let's see what's in store for us!!!!