PropertyInvesting.net: Property Investment Special Reports

712: Why the US economy will boom whilst the UK economy will collapse

PropertyInvesting.net team

We speak here as scientists and engineers, working in the private sector. The UK economy and society is stale, it’s in decline and it's totally corrupted. The UK is doomed to fail – particularly in areas well outside the London-Cambridge-Oxford-Bristol high tech catchment area. It’s the brutal truth – but don’t expect anyone to tell you this – because British people are experts at putting on a brave face, sweeping problems under the carpet and lunging from one crisis to the next, particularly politicians and the rule class. The British find it very difficult to be honest and face up to the chronic underlying issues that effect our everyday livelihoods.

Firstly – the governance of the UK has gone badly wrong. The elected MPs have little power, and Parliament has ceded power to the judicial system and non-elected bureaucrats – the so called authorities, agencies, quangos, crony committees and councils. We have layers and layers of useless value destroying regulations – anyone that breaks a regulation is accused of breaking the law. Then anyone breaking the law is threatened with going to prison. If you run a business, it’s one of the riskiest things you can do to your family – you are in constant threat of being accused of breaking a regulation. If you were in the public sector, you would be protected. But in the private sector – no-one will be protecting you. You are on your own.

It’s little wonder why so few people start businesses in the UK. The business failure rate is 90%. You get taxed to death. You are in a constant state of stress, freight or flight, worrying about the next inspector, regulator or tax authority waiting to investigate you. Only the very wealthy and very well educated have immunity against prosecution. Remember our Prime Minister is the Chief Prosecutor. The country is being run by North London lawyer - who will continue making money as the economy collapses.

We all know what happened when some normal working class folks threw some Coke cans at policemen after the Southport atrocity. They got locked away for 3 years within 3 days - swift brutal punishment. Meanwhile the public sector people involved with all the Grenfell fatalities have not even been investigated yet – after seven years there has been no prosecutions, no fines, no sanctions, no humiliations – and the enquiry report came out unbelievably "after" another serious fire in Dagenham where the same cladding was still on that building. But still no prosecutions. Can you see the point? The whole system is rigged against poorly educated people and rigged for the well educated civil service and politicians that went to Oxford and Cambridge Universities. If you run the fire brigade, planning authorities or building inspection agencies – you are immune from even being accused of any wrong doing even if dozens of people die. But if you are working class and throw a Coke can at a policeman, you get 3 years in jail within 3 days.

This is just the tip of the iceberg of the rot and corruption that is endemic throughout our UK society. The country is run by bureaucrats that have zero experience of finance and business – they have never done a real days work in their lives. They view businesses as target for taxes – and view any successful business person with envy. They treat engineers and scientists with distrust and distain. The abuse farmers and their families by implementing death taxes on their land. There is no support for private enterprise anymore in the UK. The Labour party in particular does not understand that they can only spend their money because a business has been successful so they can tax it. The more they tax businesses, the smaller the tax take and businesses gets, and the larger the public sector gets – then inflation rises and everyone is worse off. After a while the economy collapses into hyperinflation – like Venezuela and Argentina did under their socialist governments. The same is starting to happen in the UK and we are asleep at the wheel – we are in denial that it is happening. Manufacturing, businesses and private individuals pay six times more for our electricity than they do in the USA. It is completely unsustainable. An economic collapse is pretty much for certain – baked into the fabric of the country – because our cost structure is rotten. Talk of building electricity intensive AI data centres is a pipe dream, particularly with the slow planning process, regulations and nimbies at every turn. Who would want to risk building an AI data centre in the UK when electricity prices are likely to be 12-24 times higher than in the USA in about 4 years time - drive up further by Ed Millibands crazy virtue signally wind and solar farm drive?

The GDP per capita has been flatlining for ten years now, ever since the disastrous Brexit Referendum – meanwhile our competitors have seen their GDP per capita increase by 2% a year. In the UK, this is partly because the most highly talented engineers, scientists and business people are simply leaving the country – 10,000 millionaires in the last year alone. Meanwhile we have net immigration of 700,000 people a year – almost all of these people are poorly educated and have no resources to start a business. Many simple start pulling on social services straight away. It’s little wonder we have no growth in the UK anymore. The talent is leaving, business is stifled and public sector employees are getting big pay rises and have 29% of their salary added to their pension pots every week. This disgraceful self inflicted situation is totally unsustainable.

But worse still is – the competition in the USA has just gone massively up whilst we have started to get even less competitive with our ridiculous Net Zero woke mantra that will likely lead to our electricity prices doubling again in the next four years – with the threat of black-outs in winter months – cold snaps. Add to this the USA's declared Energy Dominance - executive order announced 15 Feb 2025 - we don't stand a chance.

What we would like to do is compare our government with the one in the USA – so you can judge for yourselves which one you think will be the winner over this next 4 year term.

USA UK
Meritocracy Old boys/class system
Technocratic Bureaucratic
Business Friendly Business unfriendly
Run by engineers, scientists, business people Run by politician
Improving freedom Less friend, more sanctioning
Improving transparency Opaque, hidden
USA first Globalist
Populist For the ruling elite
Democratically run Judicially run
Elected have the power The unelected have the power
Planning to reduce costs Planning to increase expenditure
Planning less regulations Planning more regulations
Reducing tax burden Increasing tax burden
Strengthening dollar Declining Sterling
Reducing interest rates likely Increasing interest rates likely
Reducing inflation likely Increasing inflation likely
Net immigration curtailed Net immigration expanded
Right leaning - conservative Left leaning - socialist

On every single measure the UK will be worse off than the USA in the next four years. It is difficult to see how the economy can grow even by a percentage point – and it implies the economy will actually collapse as manufacturing closes down, companies go bankrupt at an ever increasing pace and unemployment rockets higher.

In early Feb 2025, the Bank of England noted an up-tick in inflation but then decided to drop interest rates - a massive blunder. This will lead to Sterling declining that will then cause inflation to rise further – rather than dropping interest rates – they should have actually increased them. Inflation is starting to take off – and by the time the crazy Bank of England realise – it will be too late. It’s a sad story of economic decline which is self inflicted – by an elite globalist bunch of bureaucrats that put Britain last – not first. We pay billions is donations, reparations and hand-outs to other countries all around the world – virtue signalling as if we are important and still powerful, still on the world stage. Meanwhile poverty increases back home as the homelessness skyrocket – and sixty year old single men roam the streets in sub-zero temperatures, treated worse than dogs that at least given shelter, food and warmth – compared to our British citizens that freeze on the streets. Most areas of Britain are now poorer than Poland. The once might empire collapses decades ago - and we can't even manage our own economy any more, never mind those abroad. Yet we still get involved in military interventions, Labour politician spend half their lives flying the world attending useless conferences. Back home , the blebs are kept occupied by the BBC, football and the papers feeding useless media on dog grooming, organic food and all the British things that make our country quaint " while Rome burns". Our lack of transparency is extreme, and our freedom of speech is being eroded on a daily basis.

Unless you live in the bubble of the economy in the London-Cambridge-Oxford-Bristol area – just look around at the state of the roads, infra-structure, schools, hospitals, airports, cities and town centres. Things are regrettably going downhill fast. And it's time to get into the US dollar and out of the pound sterling with four years of this economic mismanagement to look forward to.

We make no apologies for our brutal assessment, UK investors all need to be forewarned about the risks. You can check our track record for accuracy of predictions going back 15 years. We hope this frank appraisal of the economic prosects for the UK is helpful in at least giving some insights into the reason why our UK economy is failing and it will be so much more difficult for young people to make a living and prosper in the UK moving forwards.

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