The United Kingdom’s predicament involves a fluctuating economythat is characterized by several issues with the most influentialbeing the 2007 global recession that was the longest in its history(White, Iyer & Alfaro, 2015). An analysis of the situation in theUK shows that its leaders have tried to enhance its economic growthand development. Although some of the measures been undertaken arepromising to the country’s future, further action needs to betaken. The economic recovery in the United Kingdom can only last ifthe government promotes stability, reduces unemployment levels, andaddresses the rising inequality.
Leadership is a significant element in determining the performance ofa country. It can be argued that the type of leader a nation has,influences its economic growth and development since they foresee thepolitical and economic stability of the country. For instance, afterthe Second World War, Clement Attlee became the Prime Minister underthe Labor Party while Margaret Thatcher won the 1979 elections as thecountry’s leader for three consecutive terms under theConservatives party (White, Iyer & Alfaro, 2015). She was latersucceeded by Prime Minister John Major from the Conservative Party.An analysis of the three leaders demonstrates how they influenced theperformance of the country. During Clement’s and Margaret’stenure, UK experienced high economic growth, but John’s tenure wascharacterized by issues such as corruption and sex scandals thatstemmed from his membership party (White, Iyer & Alfaro, 2015). Hence, the economic recovery in the United Kingdom can be sustainedif the leaders focus on achieving better performance. Besides, ifthey avoid problems that damage the nation’s reputation andmaintain the political and economic stability, more investors shallbe willing to invest in the United Kingdom.
Labor is also another element that determines the economic recoveryof the UK. High level of unemployment has been affecting thefinancial position of the country resulting in increased demands forwages among workers. An analysis of the labor sector shows thatKeynes argument that employment results in a series of repercussionsare accurate (White, Iyer & Alfaro, 2015). When the unemploymentrate is high, the income-expenditure is low resulting in reducedcirculation of money whereas when it is low, income-expenditure ishigh resulting in inflation. The unstable employment conditions implythat the government needs to develop appropriate structural policiesto address both situations because it leads to low-interest rates andlabor productivity. Hence, the means to prosperity for the UnitedKingdom is improving the job market as it assists in achieving thebalanced growth projections for the country.
The increasing inequality is also affecting the economic recovery inthe United Kingdom. According to White, Iyer & Alfaro (2015), theratio of income between the top and the low class was 8:1. The risein the disparities was faster in Britain than in any other countrywithin the OECD. The inequality results from the welfare reforms thatthe government was implementing as part of its austerity plan. Thetaxation rates applied to the various social classes in the countryalso widens the gap between the wealthy and the poor. The disparityimplies that the government needs to focus on implementing measuresthat shall reduce the income inequality. For instance, it shouldreconsider the welfare reforms because they appear to adverselyaffect the middle and low-income earners who depend on the socialsecurity benefits. Besides, the country’s resources are unevenlydistributed. The administration needs to be keen on the economicallydisadvantaged communities as part of its means to prosperity.
In conclusion, even though United Kingdom continues to face variouschallenges, it can sustain its economic recovery by maintaining thepolitical and economic stability, lowering the unemployment rates,and implementing measures that shall address the rising inequality inthe country.
White, H., Iyer, L., & Alfaro, L. (2015). The United Kingdom andthe Means to Prosperity. Harvard Business School, 1-28.