Productive potential growth within an economy

Productive potential growth in an economy is a catalyst for growing living standards and prosperity. Productive potential refers to the potential output within an economy. The adoption of new production techniques increases the productive potential within an economy, as is the case with an increase in the availability of new resources and technology. However, neitherContinue reading “Productive potential growth within an economy”

The Economic legacy of the Blair administration

Tony Blair became Prime Minister in 1997. This came after a landslide election victory in which the Labour Party gained 145 seats, taking them to a total of 418 seats. With a majority of 179 seats, the Labour government held the largest parliamentary majority since 1935. The transformation of the Labour Party into ‘New Labour’Continue reading “The Economic legacy of the Blair administration”

An energy crisis in Europe

Surging gas and electricity prices have hit much of Europe, including the UK. Since July 2020, gas prices have soared due to supply shocks, rendering a Winter energy crisis imminent. Such inflation in the energy sector greatly threatens the post-pandemic recovery, as consumers are faced with reduced disposable income. As a result, it is unsurprisingContinue reading “An energy crisis in Europe”

National Insurance Contributions

National Insurance was first introduced in 1911 by the Liberal government at the time. The first part of national insurance provided health insurance for employees, whereby both employees and employers contributed fixed amounts towards a health insurance fund. In turn, employees received free treatment for conditions such as tuberculosis. The second part of national insuranceContinue reading “National Insurance Contributions”

The poor state of the UK economy

The post-recession economic recovery in the UK has been far from great. The coronavirus outbreak hit the British economy harder than most, with GDP falling 12% in 2020 – the third largest contraction in the G20. GDP in six of the twenty G20 nations is now above pre-pandemic levels; at the same time, the UKContinue reading “The poor state of the UK economy”