Britain's Economic Decline: From Superpower to Struggle

Britain's economic decline, from a superpower to struggling with income inequality, is attributed to historical, war, and post-Brexit trade challenges.

### The Rise and Fall of the UK Economy: From Global Superpower to Brexit Crisis
* 🌍 Britain was once a global superpower with the nickname "**the country where the sun never sets**" due to its vast territories worldwide.
* 💰 However, the UK is now facing economic challenges, with British citizens struggling to make ends meet on the streets, and **real wages hardly increasing in 15 years**.
* 🏭 The UK's dominance as a superpower was largely attributed to the Industrial Revolution, which began in the late 18th to early 19th century in England, giving it **military and economic superiority**.
* 🌐 After the two World Wars in the early and mid-1900s, the UK suffered **significant economic, military, and political losses**, and borrowed **massive funds from the US for reconstruction**.
* 💸 Income inequality became a growing issue as the UK transitioned to a service-oriented economy, with traditional industries like manufacturing **declining**.
* 📉 Since the 2008 financial crisis, the UK has been struggling with **income inequality** and a **sharp decline in labor productivity**.
* 🇬🇧 The 2016 Brexit referendum, aimed at **regaining economic control and solving productivity issues**, resulted in the UK's **withdrawal from the EU**.
* 📉 However, Brexit has led to a **significant decrease in the UK's trade openness**, with trade barriers impacting major industries like automotive, fisheries, and manufacturing.

"이제 인도보다 못 산다?"..잘 나가던 영국 경제가 한 없이 추락하고 있는 이유 ㄷㄷ

지식세포

The Rise and Fall of Britain as a Superpower

Britain, known as a global superpower with territories across the world, is now facing economic decline and struggling citizens.

The country's dominance was established through the Industrial Revolution, which brought military and economic advantages through technological advancements and international trade.

However, this dominance was short-lived due to the impact of World War I and World War II, which caused immense economic, military, and political losses for Britain.

The UK's Transition to a Service-Oriented Economy and Its Impact

The UK transitioned from a manufacturing-based to a service-oriented economy in the 1970s, leading to rapid growth but also a decline in traditional industries and a rise in income inequality.

This shift resulted in the stagnation of traditional sectors, culminating in a high level of income inequality, as evidenced by the Gini coefficient, especially highlighted during the 2008 financial crisis.

The service industry's dominance led to a widening income gap, with many struggling to meet minimum living expenses.

The Decline of Labor Productivity in the UK Since the 2008 Financial Crisis

The UK's labor productivity has sharply declined since 2008, mainly due to insufficient investment in productivity improvement and a low educational participation rate.

The country lags behind in research and development investment compared to other OECD countries, leading to inefficiency and a lack of innovation.

The UK's low rate of progression to higher education institutions, with only about 38% of students enrolling in universities, is significantly lower than in France and the USA, impacting its labor productivity growth.

The 2016 Brexit referendum resulted in a narrow margin in favor of leaving the EU, aiming to regain economic control, but has since faced challenges.

The UK's trade openness has decreased significantly after Brexit, leading to slower trade and increased costs, with a particularly tough impact on the automotive industry.

The decision has ultimately led to a sharp decline in production volume and difficulties in accessing the EU market for British companies.

Brexit has caused a significant decrease in car production efficiency and reliability of parts movement, as well as an 83% decrease in seafood exports.

The UK's manufacturing output has been in decline, and the rapid turnover of Prime Ministers, including Liz Truss's short and tumultuous term, has led to financial turmoil.

Prime Minister Rishi Sunak is now making efforts for industrial development and economic recovery through global investments and technology innovation.