The decline in UK labor force participation is primarily driven by a rise in economic inactivity (working-age people neither employed nor actively seeking work), which recently sat around 21%. This drop is largely attributed to surging long-term sickness, post-pandemic retirements, and a decrease in students seeking work.
UK now spends more on welfare than it earns in income tax — is America heading the same way?
In the last financial year, the UK government brought in £331 billion in income tax — and spent even more, £333 billion, on welfare, according to the Office for Budget Responsibility's latest economic and fiscal outlook (1).
The news was first broken by The Telegraph (2), which noted that: "Put another way, the state is spending more on those not working than it raises from those who are" — however, the situation is more financially complex than a simple one-to-one relationship between inputs and outputs.
And the pressure is only building. Welfare spending is projected to increase by the end of the decade, as labor force participation drops to a level not seen since the start of the pandemic.
Source: https://investorshangout.com/post/view?id=6835519
UK now spends more on welfare than it earns in income tax — is America heading the same way?
In the last financial year, the UK government brought in £331 billion in income tax — and spent even more, £333 billion, on welfare, according to the Office for Budget Responsibility's latest economic and fiscal outlook (1).
The news was first broken by The Telegraph (2), which noted that: "Put another way, the state is spending more on those not working than it raises from those who are" — however, the situation is more financially complex than a simple one-to-one relationship between inputs and outputs.
And the pressure is only building. Welfare spending is projected to increase by the end of the decade, as labor force participation drops to a level not seen since the start of the pandemic.
Source: https://investorshangout.com/post/view?id=6835519
