Part 3/11:
To get a clearer picture of the UK’s debt predicament, it is essential to contextualize it historically. Since 1776, the UK’s average debt has hovered above 100% of GDP, with peaks reaching over 200% after both the Napoleonic Wars and World War II. Historically, despite these high levels of debt, the UK managed to avoid default and eventually reduce its debt burden over time. This achievement can largely be attributed to favorable economic conditions, such as a post-war boom driven by a youthful workforce, leading to increased tax revenues alongside falling debt ratios.