How Money Magic Tricked the UK

The UK's economy has been on a wild ride for over four decades. Two big mistakes, the resource curse and the finance curse, have shaped its path. These weren't accidents. They were choices made by leaders who thought they knew better.

The Resource Curse

In the late 1970s and early 1980s, the UK struck oil and gas in the North Sea. Instead of using this windfall wisely, the government chose to chase a dream.

• Cut taxes for the rich
• Destroyed industries
• Let unemployment soar

They could have invested in:

• Factories
• Roads
• A sovereign wealth fund like Norway

But they didn't. They burned the future to fuel their vision.

The Finance Curse

When the oil money started to fade, the government turned to another trick: hot money.

• Deregulated the City of London
• Made it a haven for speculators
• Kept the pound strong
• Made UK products too expensive to sell abroad

Industries like shipbuilding, steel, and textiles collapsed. The UK forgot how to make things.

The Bank of England's Role

The Bank of England played its part too:

• Kept interest rates high
• Made it hard for businesses to borrow and grow
• Focused on pleasing the City, not the people

Result?

• Regions outside London were left behind
• Democracy suffered as governments bowed to markets, not citizens

A Path Forward

But it doesn't have to be this way. The UK could:

• Break free from these curses
• Make finance serve the people
• Create public banks to fund real investment
• Build an industrial strategy that works for everyone

But first, it needs leaders who choose prosperity over magic money tricks.