US Economy Races Ahead While UK Struggles to Keep Pace

[Social Media]

 

New analysis has revealed the stark contrast in economic performance between the United States and the United Kingdom since the 2007 financial crisis, highlighting a widening wealth gap driven by investment levels, tax policies, and economic strategy. While the US economy has flourished under successive administrations, the UK has faltered, weighed down by infrastructure failures, a heavy tax burden, and the fallout from Brexit.

 

Since 2007, income per capita in the US has surged by 72%, while in the UK, it has actually declined by 2% in dollar terms. According to data from New World Wealth, GDP per capita in America now stands at $82,800 (£65,767), compared to $49,500 in Britain. This marks a dramatic reversal from 2007 when the UK’s income per capita was higher than that of the US.

 

Though GDP per capita is not a flawless measure of individual prosperity, wage disparities between the two nations further illustrate the economic gap. For instance, a McDonald’s manager in the UK earns an average of £32,649 ($41,074), while their American counterpart makes $55,300. In practical terms, this means that a US-based manager could afford to purchase 809 Big Macs per month at local prices, compared to just 647 for a UK manager.

 

The financial divergence is also evident in the stock markets. The S&P 500, the main US stock index, has soared by 306% since 2007, reflecting the dominance of American tech giants such as Apple and Google. Meanwhile, London’s FTSE 100 has declined by over 20% in dollar terms. The UK has also underperformed on a global scale, with average worldwide income increasing by more than 50% since 2007, while Britain's relative standing has weakened considerably.

 

Part of the explanation lies in the sharp decline of the British pound, which has lost more than a third of its value against the dollar over the past 17 years. However, economists argue that deeper structural issues are to blame.

 

Maxwell Marlow, director of research and education at the Adam Smith Institute, attributes the UK’s economic stagnation to three main factors: a lack of capital investment, planning and infrastructure failures, and high taxation. He explains that scaling up businesses from medium to large size is particularly difficult in the UK due to restrictive capital programmes. “The annual investment allowance is capped at £1 million, while enterprise investment schemes cut off just before a company reaches medium size,” he noted.

 

Marlow also criticized Britain’s complex and restrictive planning system, which he argues stifles development and innovation. “Our sclerotic planning regime makes it incredibly difficult to build without navigating through dozens, if not hundreds, of bureaucratic hoops,” he said. The consequences of this, he added, are evident in rising industrial energy prices as the UK pushes toward sustainability without adequate grid upgrades.

 

Taxation is another key issue. Corporation tax was raised to 25% in 2021, a move Marlow claims was driven by political appeal rather than economic logic. “We rank 30th out of 38 countries globally for tax competitiveness, with high property taxes, complex business levies, and high consumption taxes all lowering the standard of living,” he added.

 

Britain’s sluggish productivity growth has further compounded the problem. Before 2008, productivity doubled over a 35-year span. However, in the 15 years since, it has increased by just 5%.

 

Nick Ridpath, a research economist at the Institute for Fiscal Studies, emphasized the importance of investment in driving economic growth. “Investment can boost productivity—when a car factory buys a new machine, the same workforce can produce more cars in the same amount of time,” he explained. But the UK has persistently lagged behind comparable nations such as France and Germany in investment levels, and the financial crisis further curbed both private and public sector spending.

 

Ridpath also pointed to Brexit as a significant drag on the UK economy. “One key component of GDP is exports,” he said. “By increasing trade barriers between Britain and the EU, Brexit raised the costs of selling goods to the UK’s largest trading partner. This, in turn, has reduced exports and overall economic output.”

 

While the US continues to forge ahead, leveraging its investment in technology, business-friendly policies, and economic resilience, Britain faces the challenge of reversing its relative decline. Without addressing its deep-seated economic weaknesses, the UK risks falling further behind on the global stage.

 

Based on a report by The Sunday Times  2025-03-04

 

 

[Snackbar]

2015-2025

 

FTSE + 30%; NYSE + 200%
 

 

[mfd101]

Much of the description of the UK economy & policies could also apply to the post-Howard Australian economy. Looking increasingly sick, with a change to the Coalition at the upcoming federal election unlikely to make much difference.

[Watawattana]

I'm sure the Labour Party could twist the figures to make it look like they're doing a great job.  Or, alternatively, blame the Tories for their 14 years of failure.

[Chomper Higgot]

“Since 2007, income per capita in the US has surged by 72%, while in the UK, it has actually declined by 2% in dollar terms.”

 

The devil is in the detail.

 

Per capita income tells us nothing about the incomes of the blue collar, working class/middle class, whose wealth has been progressively hollowed out since the late 1970s.

 

You might recall we had a thread on this a few weeks back.

 

Macro economic data tells us nothing about the struggles of people on low and middle incomes.

 

I recommend Gary Stevenson as an alternative economic view to that of the rightwing ‘Adam Smith Institute’.

 

Stevenson explains how it is economic inequality that is destroying the Uk economy, the Adam Smith Institute are peddling more of the failed ‘trickle down economics’ that is driving that inequality.

 

Look him up before the rightwing press tell you what to think about him.

 

[Bkk Brian]

4 minutes ago, Chomper Higgot said:

“Since 2007, income per capita in the US has surged by 72%, while in the UK, it has actually declined by 2% in dollar terms.”

 

The devil is in the detail.

 

Per capita income tells us nothing about the incomes of the blue collar, working class/middle class, whose wealth has been progressively hollowed out since the late 1970s.

 

You might recall we had a thread on this a few weeks back.

 

Macro economic data tells us nothing about the struggles of people on low and middle incomes.

 

I recommend Gary Stevenson as an alternative economic view to that of the rightwing ‘Adam Smith Institute’.

 

Stevenson explains how it is economic inequality that is destroying the Uk economy, the Adam Smith I statute are peddling more of the failed ‘trickle down economics’ that is driving that inequality.

 

Look him up before the rightwing press tell you what to think about him.

 

Oh quick blame the Sunday Times for reporting facts...............lol

 

 

[Woke to Sounds]

Yawn... same story UK, Canada, Oz... all by design.

 

They all run by Lefty Cultural Marxist wing nuts.

 

Big surprise.

[atpeace]

9 minutes ago, Bkk Brian said:

Oh quick blame the Sunday Times for reporting facts...............lol

 

 

Chomper just makes up things and calls them facts.  Does he really think that GDP tells us nothing about the middle class? He probably does which is idiotic but whatever and he isn't going to stop posting rubbish.  The gap is widening between the rich and the middle class would be an accurate statement but Chomper isn't a big fan of accuracy. 

 

The median income of middle-class households in 2020 was 50% greater than in 1970 ($90,131 vs. $59,934), as measured in 2020 dollars.

Source: Pew Research Center

[spidermike007]

Though GDP per capita is not a flawless measure of individual prosperity. 

 

Ha. This is highly misleading information as the cost of living in the US has increased to such a dramatic extent. Never before have Americans struggled like they are right now (except during the great depression). Many have two to three jobs and are barely making ends meet, the homeless population is surging like never before, houseless population (which comprises those who choose not to rent anymore and would rather live in their vehicles, than pay $3000 for a bungalow, or small apartment in major cities) is estimated to be as high as 5 million people. Unless you own a home free and clear in America these days, or are earning over $400,000 a year, you are basically screwed. The quality of life in America has declined so dramatically the nation is barely recognizable to those of us who go back and forth. So these kind of studies are almost completely useless. 

 

And with these ridiculous new Trump policies it's only going to get worse. America is on a precipitous decline and these new policies are only going to exacerbate that decline. 

 

 

[Bkk Brian]

6 minutes ago, spidermike007 said:

Though GDP per capita is not a flawless measure of individual prosperity. 

 

Ha. This is highly misleading information as the cost of living in the US has increased to such a dramatic extent. Never before have Americans struggled like they are right now (except during the great depression). Many have two to three jobs and are barely making ends meet, the homeless population is surging like never before, houseless population (which comprises those who choose not to rent anymore and would rather live in their vehicles, than pay $3000 for a bungalow, or small apartment in major cities) is estimated to be as high as 5 million people. Unless you own a home free and clear in America these days, or are earning over $400,000 a year, you are basically screwed. The quality of life in America has declined so dramatically the nation is barely recognizable to those of us who go back and forth. So these kind of studies are almost completely useless. 

 

And with these ridiculous new Trump policies it's only going to get worse. America is on a precipitous decline and these new policies are only going to exacerbate that decline. 

 

 

Its far less flawless than your cherry picking though, UK homeless is also a major problem.

[Chomper Higgot]

38 minutes ago, atpeace said:

Chomper just makes up things and calls them facts.  Does he really think that GDP tells us nothing about the middle class? He probably does which is idiotic but whatever and he isn't going to stop posting rubbish.  The gap is widening between the rich and the middle class would be an accurate statement but Chomper isn't a big fan of accuracy. 

 

The median income of middle-class households in 2020 was 50% greater than in 1970 ($90,131 vs. $59,934), as measured in 2020 dollars.

Source: Pew Research Center

 
Somebody else who doesn’t understand economics.

 

The rise in median income is meaningless without including the rise in the costs of essential goods and services; housing, health insurance, education, transport, food etc.

 

The wealth of the working and middle classes is being hollowed out.

 

By example, some facts:

 

https://www.nationalworld.com/money/first-homes-1970s-ps52k-2024-ps200k-yorkshire-building-society-4723285#:~:text=By Jamie Jones,in the last six decades.

 

 

[Harrisfan]

1 hour ago, Chomper Higgot said:

“Since 2007, income per capita in the US has surged by 72%, while in the UK, it has actually declined by 2% in dollar terms.”

 

The devil is in the detail.

 

Per capita income tells us nothing about the incomes of the blue collar, working class/middle class, whose wealth has been progressively hollowed out since the late 1970s.

 

You might recall we had a thread on this a few weeks back.

 

Macro economic data tells us nothing about the struggles of people on low and middle incomes.

 

I recommend Gary Stevenson as an alternative economic view to that of the rightwing ‘Adam Smith Institute’.

 

Stevenson explains how it is economic inequality that is destroying the Uk economy, the Adam Smith Institute are peddling more of the failed ‘trickle down economics’ that is driving that inequality.

 

Look him up before the rightwing press tell you what to think about him.

 

Always a whinge

[Harrisfan]

https://usdebtclock.org/

 

Doge clock there too

[TedG]

49 minutes ago, spidermike007 said:

Though GDP per capita is not a flawless measure of individual prosperity. 

 

Ha. This is highly misleading information as the cost of living in the US has increased to such a dramatic extent. Never before have Americans struggled like they are right now (except during the great depression). Many have two to three jobs and are barely making ends meet, the homeless population is surging like never before, houseless population (which comprises those who choose not to rent anymore and would rather live in their vehicles, than pay $3000 for a bungalow, or small apartment in major cities) is estimated to be as high as 5 million people. Unless you own a home free and clear in America these days, or are earning over $400,000 a year, you are basically screwed. The quality of life in America has declined so dramatically the nation is barely recognizable to those of us who go back and forth. So these kind of studies are almost completely useless. 

 

And with these ridiculous new Trump policies it's only going to get worse. America is on a precipitous decline and these new policies are only going to exacerbate that decline. 

 

 

This is Joe Biden’s legacy.  

[Rick45]

2 minutes ago, TedG said:

This is Joe Biden’s legacy.  

 

These encampments started during Trumps first term.   During the first year of covid, they were suddenly everywhere.

[TedG]

9 minutes ago, Rick45 said:

 

These encampments started during Trumps first term.   During the first year of covid, they were suddenly everywhere.

 

[Purdey]

And here I was thinking the Tories promised that Brexit would help the UK to cut bureacracy.

[atpeace]

1 hour ago, Chomper Higgot said:

 
Somebody else who doesn’t understand economics.

 

The rise in median income is meaningless without including the rise in the costs of essential goods and services; housing, health insurance, education, transport, food etc.

 

The wealth of the working and middle classes is being hollowed out.

 

By example, some facts:

 

https://www.nationalworld.com/money/first-homes-1970s-ps52k-2024-ps200k-yorkshire-building-society-4723285#:~:text=By Jamie Jones,in the last six decades.

 

 

It's adjusted for inflation as it is clearly stated. You struggle with basic logic. Whatever, you bore me ...

[Woke to Sounds]

Watch Nomadland, the movie from 2020.

 

Widow living in her van working odd jobs around the U.S. southwest.

 

Sad film for many reasons, but the RV-ing for life characters make telling statements about why they're living that way.

[Chomper Higgot]

2 minutes ago, atpeace said:

It's adjusted for inflation as it is clearly stated. You struggle with basic logic. Whatever, you bore me ...

So housing costs the percentage of income today as it did in the seventies?

 

 

 

 

 

[Bkk Brian]

6 minutes ago, atpeace said:

It's adjusted for inflation as it is clearly stated. You struggle with basic logic. Whatever, you bore me ...

Forgive him, he knew not........he does now.

[atpeace]

18 minutes ago, Bkk Brian said:

Forgive him, he knew not........he does now.

Yep and look at his post above he just made. Not going to waste my time responding to him. Now he created a strawman so he could be correct.  

[Rick45]

1 hour ago, TedG said:

 

 

You'll note that your own graph says that they didn't even bother counting the homeless during the covid pandemic.