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The British economy from 'stability' to the Great Depression

 
The British economy from 'stability' to the Great Depression - JBDXpress

The British economy from 'stability' to the Great Depression

When discussing issues like malnutrition, food insecurity, economic crisis, the names of Syria, Iraq, Afghanistan or crisis-stricken countries in Africa may come to mind first. However, in the context of the world economy, which has changed due to various reasons, including the Russia-Ukraine war, many so-called developed countries are also added to this list. The name of the United Kingdom is already being discussed.


According to various reports, a large part of Britain's population, including more than 4 million children, is malnourished. Because many people are struggling to buy the necessary food, some are passing the day without eating. According to a report by the British media Guardian on October 18, one in four households in the UK experienced food insecurity in the last month alone. Not only the poor, but the country's economic crisis is affecting middle-class Britons as well.


Food insecurity 


Even new immigrants to the UK are food insecure. Because most of them are not covered by state welfare benefits. However, since 2010, the British government has started reducing various benefits for citizens under the so-called 'austerity' system.  


As a result, many have turned to private charities to provide food for their families. Recently, a joint statement of more than two thousand British food banks said that the demand for emergency food aid has increased several times. According to data from the Trussell Trust, one of the UK's largest charities, the rate of emergency food parcels distributed between 2008 and 2018 increased by 5,146 percent.  


Many concerned say that the situation is so critical that many children have become dependent on free meals from schools.


 Western economies in the Great Depression


 The Russia-Ukraine war started without overcoming the Corona pandemic, which has had an impact around the world. But how is the situation in the United Kingdom known as a strong or stable economy country so turbulent? Why is the British government unable to ensure food security for low-income groups suffering from excessive electricity bills and housing crisis?


 Experts say that not only Britain, but the whole of Europe is going through a terrible economic crisis; For which they were not prepared. There is even a crisis in the United States.


 Winston Churchill was the prime minister of the United Kingdom during World War II. The US entry into the war in 1941 made Churchill confident of victory. German forces were defeated by his strategic warfare and the combined force of the Allies. At the end of World War II, Churchill planned social reforms. But he was defeated in the general election of 1945 as he could not convince the public. Through this, power passed into the hands of the elected representatives of the proletariat.


 All utilities and services are then state-owned. Unions are formed at every work place, government starts regular negotiations with private sector entrepreneurs to raise wages. Even though the royal rule ended at one point, various commercial cities and ports fell into recession.

The British economy from 'stability' to the Great Depression - JBDXpress


 Deterioration of the situation


 In retrospect, the built structure of socialism gave poor British citizens three decades of power after the war.


 But the current situation of the country is getting worse day by day. UK GDP growth is forecast at 3.3 per cent in 2022, 0.2 per cent in 2023 and 1 per cent in 2024. In addition, only in 2022 inflation will increase to 13 percent. As of September this year, the country's inflation rate is the highest in the last 40 years.


As a result, the cost of living has risen across Britain, the value of the British pound has fallen significantly, and political instability has become rampant. The rival Labor Party has called for an early national election, citing the failure of the Conservatives to manage the situation. According to various polls, the popularity of the Labor Party has also increased more than before. In addition, Scotland is talking about a referendum on leaving the United Kingdom. Northern Ireland is also interested in returning to the European Union.


 Considering the overall situation, analysts say, Britain may have a more difficult situation ahead.


 Low-income Britons in long-term crisis


 Food insecurity has long been neglected in the UK. 'Food inflation' began to rise in Europe in late 2006, worsening after the 2008 global recession. From there, food security became a long-term problem for low-income Britons.


 According to think tank Food Foundation, more than 8.4 million people in the UK went hungry almost every day in 2014.