2 months ago
- The UK serves as a cautionary tale for the U.S., highlighting economic stagnation and policy missteps despite historical ties.
- Key UK problems include NIMBYism hindering housing and infrastructure, excessive financialization concentrating the economy in London, and abrupt fiscal austerity damaging public services.
- Brexit reduced UK GDP by 6-8%, showing the risks of cutting off export markets, while energy scarcity from poor decarbonization plans hurt competitiveness and living standards.
- Direct government provision of services like the NHS is politicized and vulnerable to underinvestment, a lesson for U.S. health care debates.
- The U.S. should learn to avoid similar pitfalls: prioritize growth, manage debt gradually, maintain international markets, and ensure energy abundance.