Labour MP Gordon McKee gained attention on social media for using biscuits to illustrate the UK’s debt situation. The video, shared on X ahead of the UK Budget announcement on Tuesday, quickly garnered nearly two million views.
In his explanation, McKee referred to the debt-to-GDP ratio, indicating how national debt compares to the country’s wealth. He noted that in 1994, the UK’s debt-to-GDP ratio was approximately 30%, but this rose to about 60% after the financial crisis in 2008, eventually hitting around 100% today.
He highlighted that while other countries have higher debt ratios, Britain faces higher costs of borrowing due to the rapid accumulation of debt. McKee made analogies comparing the UK’s financial behavior to people managing personal finances, suggesting the need for the government to reassess its borrowing practices.
He further mentioned that the government could consider increasing taxes on wealthier individuals as a potential solution, emphasizing that economic growth is essential for improving the debt-to-GDP ratio. McKee plans to discuss the topic of economic growth in a subsequent video.
- Why it matters:
- This explanation offers a simplified view of complex economic issues, helping the public to understand the implications of national debt.
- Possible shifts in government policy, such as increased taxation, could affect individuals and businesses in the UK.
- The latest:
- McKee plans to release additional content discussing economic growth later on Tuesday.
Source: https://news.stv.tv/politics/glasgow-labour-mp-goes-viral-after-explaining-uk-debt-with-custard-creams
Source: https://news.stv.tv/politics/glasgow-labour-mp-goes-viral-after-explaining-uk-debt-with-custard-creams