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Originally Posted by 1andrew1
Indeed. The UK remains in the icy grip of the productivity slump that began with the 2008 Global Financial Crisis and was topped up by Brexit. It means living standards are falling whilst taxes are increasing. Whilst the OBR and other economic bodies talk about it, Brexit was conspicuous by its absence in Hunt's list of reasons for the ongoing productivity slump. It's the economic elephant in the room.
The UK sadly remains on track for its predicted 15% reduction in trade intensity as a result of Brexit. So what? Trade intensity increases competition and allows countries to specialise in what they're relatively more efficient at, thereby increasing productivity.
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Capitalism has the UK in a death spiral. The Government restricts itself arbitrarily from investment, the private sector won’t either it’s just there to extract, extract, extract and offshore the profits. Wages are so low, and inflation so high, there’s limited scope to raise taxes in any significant way. Living standards have taken enough of a hit.
There’s one way out and it’s the big “do not touch” button. A wealth tax.