Name: UK Economy Is Collapsing, And Its Far Worse Than You Expect
Uploaded: 2025-09-15T18:06:04.000Z
Duration: 11 min 39 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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The British economy is collapsing, hundreds of thousands of people have taken to the streets demanding accountability.

Future simple

People are angry that their country is collapsing, they cannot possibly find a job, and it doesn't seem like everything will recover any time soon.

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And if you listen to the media, sometimes it seems like it's all the fault of the immigrants.

If you look at the statistics, it's very clear that over the last 30 years, the UK has received a lot of immigrants, millions of people have flooded the UK.

And that's why by looking at this graph alone, it might look like the plan of the government is to replace the native population.

However, if you dig down into the problems of the UK, you will find out that the immigrants are the scapegoats, and the situation is way worse than most people imagine.

If you look at the government's tax revenues over the last 20 years, you will quickly see that they haven't actually been growing much.

For example, in 2005, the British government has received around 400 billion pounds, which seems like a lot of money.

By 2019, that number has grown to 600 thousand pounds, which is a 50 percent increase.

But by looking at this, it might seem, yes, the British government is doing a good job.

However, let's take a look at how much the British government has been spending over the exact same course.

In 2005, the government's tax revenues were about 520 billion pounds.

Now if you compare these two numbers, you will quickly see a very easy and simple pattern, that the British government, over this entire course of time, has been overspending.

Now the real question is, where do you get the money that you don't have?

Where do you get your money that you don't have?

The British government, over the last 30 years, has been over-relying on debt, especially after the 2008 financial crisis when everything crashed.

The British government realized that, if we are not going to bail out the entire economy, we are going to fall behind everyone else, and we will no longer be one of the largest economies in the world.

I mean, today, the British economy is not like second or third or fourth, it's far behind even Japan, it's like what, the sixth largest economy?

But if it did not bail out its economy today, it might not even be the top 10 largest economies.

So the major problem that the British government faced over the last 30 years is that, we are spending more than we are earning.

What do you think is the solution when you are actually spending more than you are earning?

It's very easy, it's very straightforward, you don't have to be a genius to come up with that solution.

And that's, you start earning as much money as you are spending, or of course, you should just cut your spending, which would be the most logical and normal thing to do.

But it seems like, in today's world, people do not want to downgrade their lives.

I mean, you can do that on your personal level, but when we are talking about the government, the government should be accountable.

Imagine tomorrow, the British government will say, we are going to cut the funding for NHS, for example, or we will stop paying pensions for a certain number of people.

Do you think people will be happy about that?

I mean, people are not even getting re-elected in the UK, I mean, the average lifespan of a prime minister is like, what, a year, two, three?

That is in the best case scenario, I mean, some people stay there literally for a couple of months.

But anyways, but in order to grow your revenues, in order to grow the tax revenues, you have to understand how the tax revenues work in the UK in the first place.

This is where the British government gets its money from.

And you can quickly see that three sources of revenues are the major sources for the UK government.

Number one, it's the income tax, secondly, NIC, and thirdly, value added tax.

Now income tax is the exact same income tax that you pretty much pay almost everywhere across the globe.

In the UK or in the US, you have the normal income tax.

All across the globe, in every single European country or developed country, you have an income tax.

The second way or the second source of income is NIC.

And that's pretty much like the national insurance contribution, which is very similar to what you pay in the US as a payroll tax, and most countries do have that as well.

And the third source of income is value added tax.

Now value added tax is very similar to a sales tax, but the only difference between them is that, I mean, this is a huge difference, by the way, that a sales tax is paid at the end of the day when the final product is sold.

But the value added tax is paid at every stage of the production.

So you make far more money from value added tax than you make from a sales tax.

So these three sources of revenue are the major sources for the British government.

So now let's imagine, put yourself in the shoes of the British government.

They're sitting there and they're thinking, how can we grow the revenues of the government?

And they look at this graph, they're like, can we tax the corporations more?

Well, corporations aren't paying much of taxes.

Yes, 11% is a huge number, I'm not arguing against that.

But if you compare it to these three, then it's not literally that big of a deal.

And if we start taxing the corporations more, I mean, so many millionaires, so many rich people, so many businesses have already left the UK.

If we tax them more, more rich people will leave the UK.

There's so many places all across the globe where you can move and live a far better life.

So we're not going to touch the corporations, especially they're the ones who are funding our campaigns or political campaigns.

We are going to check people or we are going to help people from all across the globe to come to the UK and get employed.

So we will make this process much easier and much more legal.

When they get to the UK, they will find a job and they will have an income.

And when we are going to tax this income, that is the most brilliant plan that you can possibly come up with.

And that's how we are going to force people to pay more taxes.

When you get a job, you're going to pay income tax.

And at the end of the day, if you want to live, you have to spend money.

You're going to go to Tesco, you're going to buy stuff, you're going to order yourself a cab, you will get yourself a car, you will buy a house, you will do all sorts of things and you will have to pay a value added tax.

So if we don't have a solution to grow the economy, we can use a quick solution.

Just try to attract talent or at least people who want to find a job and have a decent life.

And that's exactly, if you look at the number of immigration to the UK, it started growing dramatically.

And that's because the UK government purposely made it easier for people to come to the UK for the British economy not to collapse, for the British government not to collapse.

People have been paying taxes in order to have a good pension and now 30 years later we can look into the eyes of these people and tell them, you know, you've been paying pensions, but we took that money, we don't even know how we spend that money.

So yeah, you know what, you're not going to receive your pension.

I mean, you cannot possibly do that as a government, otherwise there is going to be like a revolution tomorrow.

And that's why you simply bring more people who are going to pay those taxes.

You take this money and you pay the pensions for people.

If you look at the number of tax revenues in 2020, suddenly you see that there is a real decline from over 600 billion pounds to 556.

While at first glance, it doesn't seem like a big deal.

Maybe we had a crisis and now we just made less money.

But let's on the other side, look at the government's revenue.

And suddenly you see that government's revenue skyrocketed to 1.1 trillion pounds.

Suddenly, imagine you are spending 100% more than you are earning.

Imagine you're making like $100,000 and you're spending $200,000.

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UK Economy Is Collapsing, And Its Far Worse Than You Expect

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