Prof G Markets Why Britain’s Economy Is Broken — ft. Jagjit Chadha
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Sep 19, 2025 Jagjit Chadha, a renowned economics professor at the University of Cambridge and former director of the National Institute of Economic and Social Research, joins the discussion to tackle the UK's economic woes. He highlights the lingering effects of the 2008 financial crisis and Brexit, illustrating how they have hindered investment and growth. Chadha emphasizes the potential of immigration for boosting local services and explores the significance of the U.S.-U.K. relationship amidst global challenges.
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Supply Constraints Drove Higher Inflation
- A damaged supply side made the UK especially vulnerable to food and energy shocks, producing double-digit inflation.
- The Bank of England chose gradual tightening to avoid a rapid rise in unemployment.
Globalization Left Unequal Regional Winners
- Globalization created local winners and losers that the UK failed to compensate or retrain adequately.
- Centralized policymaking left regional areas without targeted investment or support to adapt.
Politics And Short-Termism Hurt Fiscal Credibility
- Poor political leadership and short-term policymaking have undermined fiscal credibility and public trust.
- Frequent policy reversals and crisis-driven decisions made markets more nervous about UK debt.