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Posted by prawn 4/4/2025

Why does Britain feel so poor?(martinrobbins.substack.com)
186 points | 389 commentspage 6
buyucu 4/4/2025|
because it is increasingly poor.
cantrecallmypwd 4/4/2025||
"Poor" is relative, and maybe conflating relative functionality of services on one axis with economic inequality on another.

See also: Detroit, Rio de Janeiro, highway sides of Silicon Valley.

AtlasBarfed 4/4/2025||
It's like the British Empire heights.

The peasants in England were still incredibly poor. The British Empire was the largest empire in history, and the nobility and elites sucked up all the imperial wealth.

Because remember, being rich isn't about the amount of money you have, it's about the amount of money you have more than the average person. The goal of capitalism under oligarchical control is the maximization of the gap.

What has made everyman's life better has been technology. It was never capitalism and finance.

YeGoblynQueenne 4/4/2025||
Given the title of the article I thought it would start by pointing out the high rate of child poverty in the UK, relatively higher than most EU and OECD countries [1], the soaring rates of child homelessness and overall homelessness [3]. I thought it might lead with the sorry, no, the tragic, state of English railways [4,5]. Or the postcode lottery and the constant under-funding of the NHS, or its hemorrhaging of skilled workers [7,8]. The sorry, no tragic state of the nation's teeth (!) [9,10]. The absolute forlorn misery that is the high street in most English towns [11]. The boarded up shops. The desperate people. The dysfunctional everything and everywhere.

But, no.

>> The big picture is pretty simple: we have a huge debt burden sucking over £100bn out of the budget every year (more than the entire education budget and nearly double the defence budget); and that would be okay-ish if the economy were growing, but it’s not.

No no. The economy is not growing. That's the problem. It's a bottom line on a spreadsheet.

And do you know who is responsible for all this? Well according to the author of the piece above that's all the useless public officials and quangos (maybe we should take ... a chainsaw at them?) and the crazy overspending the must obviously be responsible for (or at least that seems to be the allusion in the article, though never stated directly like that).

Sorry but given all of the above I have very serious doubts about the article. I mean it's clear there is an agenda here and it's not about poverty, or not about reducing poverty anyway. It sounds more like it's all about increasing richess, the richess of people for whom poverty doesn't mean a trip to the local food bank, but a trip to the Greek islands in a friend's jet because you can't afford the fuel for your own.

And maybe that's the reason why the UK is a rich country but so many of its people are poor. It's not a matter of quantities of money, it's a matter of distribution.

___________

[1] https://cpag.org.uk/sites/default/files/2024-01/CPAG-Poverty...

[2] https://www.bbc.co.uk/newsround/68574869

[3] https://england.shelter.org.uk/what_we_do/updates_insights_a...

[4] https://theconversation.com/rail-disruption-in-the-uk-is-so-...

[5] Personal experience: 3 out of 5 of all train journeys during my four-hour commute would be cancelled or delayed. Fortunately I could WFH.

[6] https://www.bbc.co.uk/news/articles/clynvjgynp8o

[7] https://lordslibrary.parliament.uk/staff-shortages-in-the-nh...

[8] https://www.bmj.com/content/384/bmj-2024-079474

[9] https://www.bbc.co.uk/news/health-62253893

[10] https://www.thelondoneconomic.com/news/hundreds-queue-around...

[11] Personal experience. I live in an affluent student town by the sea but outside this affluent enclave it's like another country and you can see why people would jump at the chance to bury the current political class and piss on their graves.

scrlk 4/4/2025||
British elites essentially gave up trying to rule after the Suez Crisis, when Britain's ejection from the superpower club was confirmed. The country has been aimlessly bobbing around since under a general policy of "managed decline", and matters have now come to a head.

"How did you go bankrupt?" "Two ways. Gradually, then suddenly."

Lee Kuan Yew commented upon it in From Third World to First: "As Britain’s worldwide influence shrank, so did the worldview of its younger parliamentarians and ministers. Some old friends, British commanders who had fought in the last world war and had served in Singapore defending us against Sukarno’s Confrontation, compared the old generation British leaders to oak trees with wide-spreading branches and deep roots. They described their younger leaders as “bonsai oak”, recognisably oak trees, but miniaturised, because their root area had shrunk."

lo_zamoyski 4/4/2025||
You don't have to be a superpower to be a prosperous society. This loss of superpower status means you need to refocus your efforts on the tractable instead of wallowing in has-been fantasy.
fidotron 4/4/2025|||
The scary thing about 21st century Britain is the extent to which they now wallow in the never-happened fantasy of the Harry Potter universe to compensate for it. That has changed absolutely everything, not all bad to be sure.
bombcar 4/4/2025||
As an American, I categorically refuse to believe Britain is anything but Harry Potter without magic.
tempest_ 4/4/2025||||
Of course that is true but it undeniably helps. I wonder if postwar Britain watching its hegemony decline will be anything like the current decline of the US.
schnitzelstoat 4/4/2025||||
Yeah, like I don't think Norway or Switzerland have ever been empires, much less superpowers.

But they provide a very good standard of living for their citizens.

xedrac 4/4/2025||
Norway's economy is heavily reliant on oil and gas. What of countries that don't have such abundant natural resources?
HPsquared 4/4/2025|||
And "small but prosperous" is exactly what Singapore does well. The UK could learn a lot from Singapore.
spacebanana7 4/4/2025|||
The empire was almost always a waste of money. Very few, if any, colonies created enough money for the treasury to justify the cost of maintaining them.
echelon_musk 4/4/2025|||
There was a TV show made in the 1980s called The End of Empire [0] which is (mostly) available on YouTube. It chronicles what happened in India, Palestine, Iran, Egypt, Cyprus, Ghana, Kenya, South Africa, Singapore etc. and may be of interest to those musing about Britain's decline.

I learned about it from watching Coup 53 [1].

[0] https://www.youtube.com/watch?v=D2WaMdGl0uw&list=PLanJEt7jLo...

[1] https://www.imdb.com/title/tt1984135

FirmwareBurner 4/4/2025||||
Like with every colonial power, the empire wasn't there to enrich the entire country or the average people, it was enriching the crown and wealthy business magnates involved in the trade, basically the top 1%, the rest were left to wallow in poverty and hard labor.
spacebanana7 4/4/2025||
I definitely agree there were some individuals who made money from the imperial project, but it wasn't rational at the level of the British state/monarch.

> Like with every colonial power...

Some colonial powers may have genuinely increased the wealth of the imperial state. The Spanish and Mongol empires stand out in my mind here, although I don't have a precise source of accounting.

capex 4/4/2025||||
False. Read Oxfam's report on the topic: https://www.oxfam.org/en/research/takers-not-makers-unjust-p...
spacebanana7 4/4/2025||
I don’t see how that refutes my claim?

Yes a bunch of individuals got rich, but my position is that their tax payments (and wider economic contributions) never justified the cost of maintaining the colonies.

It would have probably been better if the government just gave the upper class money directly, rather than indirectly by paying for navies to acquire land for them.

karaterobot 4/4/2025||||
I think people are downvoting you because, on a surface level reading of your comment, it could sound to an ungenerous reader like you're saying colonialism was a good thing. I read you as making an economic argument against it, which does not preclude (and indeed complements) the moral one your downvoters are so coupled to.
James_K 4/4/2025|||
It's frankly sickening that some people think the empire was an exercise in us helping the third world develop purely out of the goodness of our hearts.
spacebanana7 4/4/2025|||
William Jardine getting half of China addicted to opium and starting a war out of the issue wasn't good for China or Britain.
busterarm 4/4/2025|||
Maybe if China was willing to buy anything else but opium, that never would have happened. China's exports were in hot demand and they would only transact in silver but wouldn't buy anything to return that silver supply to global markets. It was causing massive problems in the silver market with over 40% of the yearly global supply going directly to purchasing Chinese exports.

Trade imbalances like that always lead to war. historically.

HPsquared 4/4/2025||
In that case the solution would be a floating silver price. Was this some kind of currency peg breaking? Ironic really.
orwin 4/4/2025|||
Yes, the silver standard was a thing before the gold standard, and those switched back and forth depending on the current gold rush.
ben_w 4/4/2025|||
Had anyone invented fiat back then? I assumed the concept was more recent.
James_K 4/4/2025|||
Well it wasn't good for us unless you count all the money we made out of it before they started fighting back.
ffsm8 4/4/2025|||
The British people certainly didn't make a lot of money from that. One person did.

But blaming whole countries for the actions of single entrepreneurs has been the MO for a very long time now, so I can see how you feel correct making that statement

spacebanana7 4/4/2025|||
What benefit did the British people - or the British state - get out of this at any point? Jardine Matheson didn't exactly pay many taxes at the time or employ many people in the UK.
Retric 4/4/2025||||
That’s not what they are saying.

Ego, corruption, etc are explanatory. The statewide economics just never quite worked.

HenryBemis 4/4/2025||||
The number 1 (and super easy to debunk) BS narrative that the English (mainly) say on the topic of "we never stole from others" or "it was a trade-off for modernizing them", etc. is how about you give back _all_ the things you 'didn't steal'. All Gemstones from all crowns/staves/etc, everything in the "British" (cough-stolen-cough) Museum. And _then_ your argument will have half a leg to stand on.

So until you return what is stolen from every country around the planet, keep the BS to yourselves because it only angers the rest of us, you pathetic thieves. Totally deserving what is going on in the UK. And I fear it is too late to turn that ship around in the next couple of decades. Especially with the politicians that are running the show and the younger ones in the pipeline.

And it is a great pity because I have lived and worked in the UK and I loved the people and the place. But hold your tongues and stop biting your own tails (you snakes) and perhaps you will have a better life in 20-30 years. :)

p3rls 4/4/2025|||
It's frankly sickening that some people heap scorn upon the Britain of their ancestors, especially considering they're the only ones that actually you know, abolished slavery and had the seeds of thought in its WEIRD Protestantism that evolved into the strain of progressivism that you masochistic westerners hold dear.
NoImmatureAdHom 4/4/2025|||
This is the informative take these days. You know what was way, way worse than colonialism? Everything that came before colonialism.
orwin 4/4/2025||
Unless you can explain Frank feodalism, Chinese legalism or frankly, any system before colonialism and cheptel slavery, and explain how cheptel slavery was somehow better, I will take your comment with a chunk of salt.
NoImmatureAdHom 4/4/2025||
Do you mean chattel slavery? "Cheptel" is a word I'm not familiar with and apparently refers to livestock. "Cheptel slavery" doesn't appear in any search results.

Happy to engage, just need to understand :-)

Hasnep 4/4/2025||||
> abolished slavery

Yeah and why didn't people praise me when I released all the puppies from my puppy kicking factory?

p3rls 4/5/2025||
It's because your ancestors couldn't find the means or will to do it and would still be practicing it today if not for the British
Hasnep 4/9/2025||
A lot of my ancestors are South African so they were doing apartheid until pretty recently :/
alarak 4/4/2025|||
replaced slavery with indentured labor you mean?
emptyfile 4/4/2025|||
Getting so tired of HN, every thread has these kinds of vague, ignorant, semi-political comments. Just a throwaway opinion with some unrelated quote to appear smart, not related to the posted link, nothing added to the discussion.

The Suez Crisis happened 70(!) years ago, the article is talking about where modern day UK spends its money. It's literally right there in the opening sentence, if you only bothered to open it:

>Britain is a rich country with the world’s 6th largest economy and the highest tax income for decades, which raises a simple question - why do we seem so broke?

Aside from strictly technical topics, this community is now worse than Reddit.

wobfan 4/4/2025|||
Also somehow the comment above is talking exclusively about influence and power in the "world order" which is not at all what the article is about.

Power != Prosperity

taeric 4/4/2025||||
I think far too much effort was spent building critical frameworks in social sciences without the lesson sticking that it is a two way street. You build the critical framework to frame specific criticisms. By doing that, you can highlight influences that may be missed in another framing.

Which isn't a bad thing. But the key there is in building frameworks. Instead, we seem to have built large portions of the public into thinking these are the only frameworks that matter. And so everything has to be tied back to them.

mapt 4/4/2025||||
The cultural emphasis HN has on original commentary and not doing low-effort link posting has its costs. Sometimes an FAQ model is just a superior line of inquiry.

The most plausible models for UK decline that I've encountered come from a Youtuber named Britmonkey.

https://www.youtube.com/watch?v=4ZxzBcxB7Zc

https://www.youtube.com/watch?v=b5aJ-57_YsQ

He talks about housing as _ongoing existential crisis_, contra widespread apathy on the subject, and about how since Thatcher, the political rule has tended to integrate the worst aspects of center-left and center-right governments.

Ezra Klein's _Abundance_ has been in the news lately, and there are some very similar arguments made there, focused on the US context.

fullshark 4/4/2025||||
Yeah, Founders don't post here anymore, they are busy chatting on some secret message boards and group chats the riff-raff don't have access to. This site is now for bitter tech workers and wannabes and the comments reflect it. I'm guilty of being a member of that class I admit, and I'm not doing much to elevate things but the discourse has become incredibly uninteresting as a result.
scrlk 4/4/2025|||
I read the article. My comment was prompted by this:

> One reason for this is that parts of the British state are fundamentally misaligned with goals like ‘improving living standards’ or ‘increasing wealth’, whether that’s through hand-wringingly incompetent procurement processes, long-term failure to invest in the infrastructure and management required to support ‘moar frontline staff!!’, acute treasury brain, or endless cohorts of committees and quangos.

> The current level of ambition, of vision, just doesn’t match up to the situation we’re in.

It’s about a failure of state capacity. The article’s entire argument hinges on why British institutions can no longer turn wealth into functioning systems. The post-imperial loss of strategic vision among British elites is not a distraction: it’s the historical foundation of the current malaise.

Suez was the moment Britain exited the world stage and never figured out what it stood for domestically in the vacuum that followed.

You can’t talk about the failure to invest, coordinate, or reform over decades without asking why the ruling class stopped trying.

api 4/4/2025||
Seems like one of the dangers of empire is that losing it, which is inevitable, leads to a hard-to-shake condition of feeling like a has-been society. It makes it hard to just be a good nation, a good place to live.

I fear the same thing is coming for the USA as it, inevitably, loses its standing as the world's sole great superpower (which it only had for maybe 20 years at most!). We could easily get stuck in a permanent cycle of demagogue after demagogue promising to, well, make us "great again."

You see it in individuals too. The root of the word celebrity is celebrate. Make someone a celebrity and put them on a pedestal, and it often ruins them forever. It's a fickle thing. When they inevitably go back to being just a regular person, the effect is often to leave the person permanently feeling like a has-been. They flail around for the rest of their lives trying to recapture something that is fleeting instead of enjoying the fact that (1) they achieved something few people achieve and (2) they have the rest of their lives ahead of them.

Success is more psychologically dangerous than failure.

There's a saying: "whom god wishes to destroy, he first makes mad." I think a better version is "whom god wishes to destroy, he first raises up."

gjm11 4/4/2025|||
> The root of the word celebrity is celebrate.

Actually, that's not quite right. The root of both "celebrate" and "celebrity" is a Latin word whose original meaning is something to do with crowdedness. Celebrity (in the older sense of "being famous") means being someone that people crowd around. The original meaning of "celebrate" was to hold a religious service, attended by crowds of people. Later "celebrity" evolved to also mean a person who has the quality of celebrity-in-the-old-sense, and "celebrate" evolved to also mean to hold some other kind of event that attracts crowds. But "celebrity" didn't ever primarily mean "person who is admired", it was always "person who attracts attention".

(It is still true that people who are famous and then not famous can find it hard to adapt to the change, of course.)

graemep 4/4/2025||||
> Seems like one of the dangers of empire is that losing it, which is inevitable, leads to a hard-to-shake condition of feeling like a has-been society. It makes it hard to just be a good nation, a good place to live.

I think you are right, but I also think it afflicts the ruling class a lot more. In particular, politicians, who are power seekers by nature, feel the loss more than ordinary people do. IN their minds, not being a super power equates to declined, even if life improves for ordinary people (which it did).

onlyrealcuzzo 4/4/2025|||
England is a has-been society because 1) they are old and have more vacation. You've got less people working less hours. REAL GDP per work hour is up >50% since the early 80s - what people seem to think of as some golden era - and is more than double since the 60s, another golden era according to others - even real GDP PPP adjusted, you're still >50% since the 60s.

2) They decided they wanted to punish hard workers and productive investment and aggressively reward capitalists that "park money" in non-productive assets (like real estate).

England could easily reverse these decisions and aggressively reward hard work and investment in productive assets, open the doors to intellectuals, and the hard, smart working people and investment would come pouring in.

But, they'll never do that, because boomers.

The problem with England is the problem elsewhere. The amount your society needs to improve to let ~1% more people not work every year for ~30 years is incredible. The entire west has done it. But the benefits are going almost exclusively to the retiree class.

In the not too far future, if trends continue <50% of adults will be working with very high standards of living. This is absolutely UNHEARD of. At the same time, you'll see basically no benefit at all for the people who actually do the work.

This doesn't seem like the best way to distribute productivity gains to society, but it's the way we've chosen, and as long as old people have a say, you better bet they're gonna vote for the status quo or even bigger pension payouts in the future.

olcragg 4/4/2025||
[dead]
MrMcCall 4/4/2025||
I think it can be best summed up in Craig Ferguson's joke he made when chatting with Robin Williams that he liked to go to London and do to the English what they had been doing to his people (the Scots) for hundreds of years.

Much was made of the double rainbow that appeared when the queen died, and I say that was God saying, "Things are going to be better now, now that that evil bitch is dead."

Maybe if the royals weren't spending their world rapings on 13 pomeranians (or whatever), there'd be more money for the poors.

I do like Harry, though, he's got enough of his awesome Mum in him to counteract his father's evil.

And now King Donald is decimating America. Such is the way of kings, my friends.

password54321 4/4/2025||
[flagged]
timerol 4/4/2025||
Is Britain really in such bad shape that the main way to conceptualize their problems are to say "look at America"? I know the memes about Civ-style America's Total Cultural Victory, but I'm kind of surprised to see it in the wild like this.
oa335 4/4/2025||
> ... Communism and globalism is now taught in schools ...

> ... funding LGBT propaganda overseas ...

> Everything else is more or less a scapegoat for the real issue.

Unintended irony.

arp242 4/4/2025|||
Tories in power for 15 years. "The Communists have taken over!" I don't even...
password54321 4/4/2025|||
[flagged]
jmyeet 4/4/2025||
Oh that's easy: it's because it's poor. Why?

- Not taxing the wealthy;

- Austerity measures that do nothing but destroy government services; and

- Housing prices.

You see this kind of disconnect all the time. For example, in the Biden administration, people would point to how well the NASDAQ is doing to say "the economy is doing great", which says nothing about the job market or living standards.

These economic measures really tell you nothing about wealth and income distribution.

House prices all over the developed world have to come down. This is arguably the biggest problem. But voters will resist that because it's their nest egg. At this point, this only goes one of two ways: fascist police state or socialist revolution.

Hoarding or denying shelter or food is violence.

diordiderot 4/4/2025||
Taxing wealthy

> This is because average tax rates rise more quickly with income in the UK, and are already higher at the top relative to the median, than in most of the European countries that raise more revenue overall.

> Austerity

Tories spent more on government than 2000s labour as % gdp

tirant 4/4/2025||
Not only that. By increasing income taxes so steeply the State is incurring in perverse incentives or negative incentives, so people decide to not work a 20% more time to earn 20% more if that extra money is going to be taxed at a 50% rate.

Perverse incentives are an absolute disaster for the economy of our countries. Recently the socialist party approved in Germany an income limit for parents to receive income replacement benefits when being on parental leave. What was the result? From my group of friends in all cases the lesser earner from the marriage (the woman most of the time) has stopped working in order to not reach the income limit. This results in less income tax collection for the State, a poorer family and a less productive company. No one wins.

boxed 4/4/2025|||
> Not taxing the wealthy

There aren't enough wealthy to cover the shortfall. Doing this is a moral issue, not a national economy issue.

But yea, the rest I think I agree with.

tirant 4/4/2025||
The wealthy are likely paying more taxes than anyone else in absolute terms.

But more taxes alone won’t fix the problems outlined in the article—namely, the misaligned incentives across different branches of the State and the shockingly low return on each pound spent. That inefficiency is probably also a symptom of poor alignment among the individuals involved in procurement, as well as broader societal incentives.

Over the past few decades, States have grown so large that the original incentive structures they were built on are now being challenged by competing incentives emerging from individuals and various sub-organizations within the State itself.

These kinds of conflicts are far less common in the private sector. There, the company’s goal—profit—is usually well aligned with the customer’s goal—getting the best product at the lowest price. And that alignment tends to cascade through every level of management, all the way down to the last employee.

alarak 4/4/2025|
All the colonialism and racism apologists coming out of the woodwork.
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