Tejvan Pettinger - Economics Help

How the Spanish Economy became the Envy of Europe

27 June 2025 by Tejvan Pettinger

Since 2020, Spain has been one of Europe’s best-performing economies. Despite Covid, it has grown by 8%, outperforming the likes of the UK, Germany and France. In 2024, Spanish growth was an impressive 3.1%, (and according to the boast of a Spanish minister), accounting for 50% of all the EU’s economic growth. How the Spanish …

Are Young Men Falling Behind?

27 June 2025 by Tejvan Pettinger

Is there a crisis facing young men? In recent decades, many traditional male jobs have disappeared and this has caused a significant drop in male employment levels. In 1970, economic inactivity rates for men were 16% today it has risen to 32%. This decline in traditional employment patterns has contributed to a growth in mental …

Will Conflict in Middle East Cause More Inflation

24 June 2025 by Tejvan Pettinger

In 1973, in response to the Yom Kippur War, OPEC introduced an oil embargo which caused prices to rise 300%. It ushered in an era of high inflation and political volatility. In 1979, the Iranian revolution caused another 300% rise in oil prices which caused a secondary inflation shock and the deep recession of 1981. …

What happens when Economies Collapse?

14 June 2025 by Tejvan Pettinger

Between 1991 and 1998, Russian GDP fell an estimated 40%. The transition to a free market economy was plagued by hyperinflation, rising poverty, falling life expectancy and social dysfunction. Whilst the average citizen saw a marked deterioration in the quality of life, a few oligarchs became intensely rich as they bought state assets at a …

Where does all the government spending go?

13 June 2025 by Tejvan Pettinger

Why is there No Money Left?Watch this video on YouTube Last July, the new Chancellor Rachel Reeves, announced winter fuel payments for pensioners would be means tested. She hoped this brave and bold decision to stabilise Britain’s finances would be welcomed as a sign Labour were a serious government full of serious people. Labour Ministers …

UK Budget Deficit

2 July 202512 June 2025 by Tejvan Pettinger

The budget deficit is the annual amount the government has to borrow to meet the shortfall between current receipts (tax) and government spending.
Net borrowing for the UK 2021/11 is £151.8bn or 14.8% of GDP [OBR – J511]
National debt or public sector net debt – is the total amount the government owes – accumulated over many years. See: UK national debt (May, 2022 – £2,347.7 billion equivalent to 95.% of GDP)

UK Borrowing

Budget deficit – annual borrowing

This is the amount the government has to borrow per year.

In 2000/01, the UK ran a budget surplus of £17bn or 1.7% of GDP
In 2009/10 at the height of the great recession net borrowing was £152 bn or 10% of GDP

UK net borrowing

View: Latest statistics at OBR

UK House Prices are Rising: How Long Will it Last?

6 June 2025 by Tejvan Pettinger

In the past 12 months, UK house prices have once again started to rise, with house price inflation reaching 6%. Even the end of stamp duty in April, did not prevent prices rising by £3,000 in May, according to the Nationwide. It means prices have regained their previous peak of 2022. However, the rise …

Warnings of Financial Crisis 2025

4 June 2025 by Tejvan Pettinger

Since the start of the year the dollar has fallen 9%. The global reserve currency is under pressure. (BTW: real problem in Japan was 30 and 40 year bonds) Yet at the same time, bond yields are rising creating a headache for the government and financial system. In Japan, the recent surge in bond …