Debt & GDP Ratio - UK government debt stands at 101% of GDP [1] - Government spending accounts for 45% of GDP [1] - Government borrows to cover interest payments, indicating unsustainable fiscal policy [1] Doom Loop Mechanism - Increased taxes to fund debt reduces economic growth [2] - Reduced growth leads to decreased investment [2] - Decreased investment causes wealth creators (the 1% who pay 30% of taxes) to leave the system [2] - Wealth creators leaving necessitates even higher taxes [2] Potential Solutions - Government needs to cap spending at 35% of GDP [3] - Creation of special economic zones or tax breaks to attract wealth creators and investment [3] - Implementation of fiscal responsibility, ceasing money printing and further borrowing [3]
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Ivan on Tech 🍳📈💰·2025-07-29 20:40