This is what happens when one listens to economists. Not all economic activities are equal. There is something different about manufacturing. When the UK was the workshop of the world, it became the richest country in the world. When the USA was the workshop of the world, it became the richest country in the world. China is now the workshop of the world, it has got very much richer recently. The UK is never going to compete internationally on the basis of wage rates. So it has to substitute energy for labour. That means the UK should be pursuing a low cost energy policy. Also, it has to be able to do things others cannot. So technological education and training should be a priority. None of this is "rocket science".
However, manufacturing as you can see is susceptible to being overtaken by other nations. The Soviet Union had a very large industrial manufacturing strategy and people were poorer. The key thing is having a balance and ensuring high employment in key areas. Germany for example manufacturing is suffering due to weak domestic and foreign demand, in which case you need the Services sector to pick up the slack. Its not rocket science, its economics which arguably can be more complex at times as higher order multi variate problem compared to rocket science.
@@conconmc The thing is rocket science is *science*, with scientific theories. Economics is a bunch of personally held ideals, unsupported by strong evidence, with little predictive power. I was a Universty academic and was called in by the head of a top business school to vet and _viva_ his PhD student as she was doing complex maths which overturned his pet mathematical model. Much to the head's chagrin I found her maths to be faultless, and her arguments, based on her stated assumptions, led to her conclusion. She got her PhD. The problem with economics is the assumptions, as they reduce the domain of discourse.
@@frogandspanner - Interesting, major advances invariably result from extraordinary individuals vision and will power, and these individuals are rarely economists, academics, bureaucrats or politicians
Why invite people from commonwealth countries to do the crappy jobs and then close down all the factories. What did the governments think would happen, apart from racism and a blame culture
Because that never happened. They were never invited. The only people 'invited' via formal means by the government were Eastern Europeans under the Westward Ho and Balt Cygnet programs. Some italians were requested by individual companies like London Brick, but never new commonwealth/NCWP sorts. For fairly obvious reasons. Why introduce racial, religious and, in the case of anywhere but the west indies, language fault lines into what was then a largely stable & homogeneous nation. The whole 'we begged them to come' is bogus 21st century revisionism. The only begging that went on was the British government begging the newly independent governments in the subcontinent, and the colonial administrations in the West Indies to stop them from coming by, for example, denying them exit visas.
Thats a lot of it. People blame de-industrialization. But look at two neighbouring cities that have suffered similarly from that in an international context. Detroit Michigan & Windsor Ontario. Both historically dependent on carmaking. One has gone to hell, the other is still frequently regarded as one of the safest & nicest cities in Canada. There is one big difference though...
@@Nick-io9uk. Does it make feel better to blame people’s skin color? Why do you think they become like that ….what was the reason.? Don’t worry your folks( Anglo) will find that out soon, the drugs are killing of you people, the women are not having family ( population decline) and the alcohol is the sleeping aid for many of YOU! Let’s see how far you people fall 😂 I bet you will act a victim
@@Nick-io9uk One's in Canada receiving help from the government to respecialise and the other has a police force that specifically targets and victimises young people of colour you mean? I agree.
@@babayaga6376 LOL what exactly has any of these claims got to do with the fact that since 1979 the ASI and IEA have dominated policy making? They're literally lying about what's happened and pretending like they've had no influence these last 45 years. This is how we know an ideology has reached its end point
the 1947 Town and Country Planning Act removed the incentive for local councils to permit building infrastructure. The country is run by Oxbridge graduates who pay no price for being wrong. HR is the only growth profession in the UK due to one set of Oxbridge grads bringing in thousands of regulations in relation to employment. Now Isobel an Oxbridge arts graduate gets paid 250k a year to ensure companies have the right quota of sexual preferences and colours employed.
Local councils were prohibited from building social housing by Thatcher. This didn't help either the building industry, nor did it help 21st century Britain, now suffering a crippling housing shortage
The West Midlands suffered more than anywhere else in Britain from the process of deindustrailization, in particular the decline of the motor industry.
@ponderingspirit that's not what he means. He means the gov are paying older muslims on thr dole that don't work and just go to a mosque. Try read the statement properly
@@I_am_Jesus_though What data shows they're on the dole? And how do you know which mosque they're attending? let alone their whereabouts. If they're older, they're of pensioable age. What's the problem? You weird little racists.
Rather unconvincing attempt to shift the blame for deindustrialisation away from Thatcherism and free market dogma. British industry paid the price for being the first country to industrialise (no competition in world markets) and then struggling to modernise with outdated institutions and lack of investment. Birmingham is a classic case with its small workshop based industries. The impact of the world wars particularly the tight constraints on investment after WW2 should not be underestimated. The post war attempts to modernise and rationalise industries through mergers were too little too late. The deliberate policy of deindustrialisation of the 1980s onwards with the focus shifting to services and particularly the finance sector (which formed the social base of Thatcherism) glossed this failure over for a while particularly with North Sea Oil revenues but has had disastrous long term consequences
I have learnt so much from this report. Birmingham’s decline is the result of government folly, from 1945 onwards. I can hardly believe the Distribution of Industry Act was passed in 1945.
@@vlad.the.impaler. Britain's wealth was built by having those people within the empire, but prohibited from trading with other European powers. The opening up and loss of the colonies destroyed Britain's markets. So you're right for the wrong reasons.
In 1780 the West Midlands was a world first. The world's first mass-industrial hub, where production equalled coin, commodity, wealth and on an unimaginable scale. But the debt-based City of London ensured that that wealth, largely, would never go to its producers. It would simply pay and service debt. Which is why Britain remains debt-enslaved.
The UK has been going 50% at best ever since WW2. No idea why but every cisris that comes up seems to last longer in the UK than in comparable countries?
Britain made pretty much every country in their, ever so BRUTAL, empire independent, and went through 2 an entire world wars, that bankrupted the country. So, people from all of those places (a lot of whom were poor because of what Britain did in their land) came to Britain (some were invited) for better economic opportunity. I find it hilarious that so many of you focus on the “issue” of immigration, but never actually want to discuss WHY people migrated to Britain post WWII…
The British government taxed its economy to death starting in 1944. The taxation of wages, goods, services and the tools of production will inevitably destroy an economy. Trying to run a welfare state with such a tax system is suicidal. Neither left nor right acknowledge this. We are now approaching the end of the doom loop.
The truth is the diametric opposite: we slashed taxes in the 80s and now the country is at the mercy of the private interests that the ASI represents. You also left out what deregulating the banks left us with
@@physiocrat7143 That's what Thatcher is most famous for: cutting taxes on the well off. You can lie or deny it all you want, that's what happened. The reason VAT was created and increased by the Tories was to transfer more of the tax burden to the less well off You guys can cry and wail all you want, you just can't accept that neoliberalism has been a disaster and that it's coming to an end
Post WW2, economic growth was the greatest in the 1950s-60s, when taxes were at their highest. As the Scandinavian economies prove, high taxation doesn't, by itself, cause economic stagnation. What matters is governance. The UK failed to successfully transition from relying on its empire to becoming self-reliant.
GOD I AGREE WITH THIS. The treasury spreadsheets have wrecked this country. Let people and business choose their paths rather than trying to impose a politburo centrally planned strategy. its so obvious.
The country is completely dominated by the financial and corporate interests that the ASI represents. If the treasury has been serving anyone it's them.
@@Phil-n7c nonsense, the ASI do not represent financial and corporate interests anymore than they represent small business and workers. Anyone who wants economic freedom is represented by ASI. You my friend are part of the 'useful idiots' who keep the corporate overlords in the comfort they've become accustomed to. These people fear free markets and competition more than anything as they depend dearly on government regulation and handouts from labour and the tories to keep them afloat. The opposite of what ASI stands for entirely.
no mention of the poor labour relations in the 1970s which did a lot to accelerate the decline of the British-owned car industry largely based in the Birmingham area
@stevenfarrall3942 total rubbish. I worked as an auditor of RR in 1970s. They went bust,laddie, because they had contract with Lockheed at too low a price on their RB211.not really!
@@erongi233 I agree with your assertion regarding the RB211 costs being out of control and the connected issue with the Lockheed contract. If re-read my comment I say 'a priori failed government interventionism and bad money. By 1971 the inflationary consequences of the welfare state and other factors were wreaking their havoc on industries like aerospace. This was making GBP weaker and leading to a lot of problems for firms trading internationally (ss the ASI video also states). Money is a nationalised commodity in the UK - the post WW2 labour government nationalised the BofE - enabling the massive over-production of money and credit. This tends to make manufacturing of things like aircraft harder to do profitably because of the long lead times, whereas it makes the production of goods for immediate consumption easier. It was a priori government failure that destabilised RR. Oh and FYI I did a dissertation on the RR failure for my business studies course.
Britain wrecked itself fighting wars it couldn’t afford in the first half of the 20th Century America is doing the same thing this century Col Macgregor Ret
True. Especially it should not have been involved in WWI. It should have allowed Austria to fight its war against Serbia on its own. Britain found a chance to fight Germany and at the end it lost the empire.
@@georgerj2419 Britain joined WW1 to protect Belgium. British foreign policy has always recognised that a mainland Europe dominated by one country is bad for Britain.
@@nigelgarrett7970How did that work out as Germany (even a divided country) remained the strongest country on the continent- especially economically Belgium was a pretext and excuse for those that wanted war Britain sent an army over that wasn’t designed to fight against large continental armies We should have told the Germans that we would keep them out of the Channel and North Sea if they had designs on channel ports.
So basically you're saying we should turn a blind eye to the destruction of what little natural area still survives. Yes, the industrial revolution created a lot of wealth, but on the back of huge amounts of environmental destruction, as well as worker exploitation. Your claim that workers of that period were well paid is just plain wrong, it was a time of children up chimneys and factory workers trudging to the mill in the early morn. We don't want to return to that type of exploitation for the sake if GDP and the enrichment of a small minority of the population.
Exactly my thinking. I am no socialist (but I am somewhat of a social-democrat), and it's possible that some of what he says is correct, but he seems to idealize a time when the "little people" suffered much more than they do today. There are things to repair. Lazy people shouldn't get unemployment money. However, sick people who can't work should. It's complicated. It's not black and white.
If the Empire was successfully reformed in the 19-th century to integrate the disjointed economies across the globe in a common market, Britain could have wielded the Great War from a much better position, avoiding the mounting costs of maintaining overseas territories and keep its status as net creditor and industrial leader.
But alas, that would have required forethought and some modicum of contrition. Instead, we got India/Pakistan, Palestine/Israel and several other wars over the boundaries we imposed.
@@Sean-p3o The Balkans are closer to some parts of the UK than some parts of the UK are to each other. Stopping people from thinking you can murder your way over other people's borders is why you've never had to go to war.
Omg, grinding my teeth to paste. You are definitely right in the matter of government suppressing the organic movement within the country of capital and labour. There is nothing useful I can add except the observation of a sympathetic outsider that heartened me on my only visit to your islands, May/June 2016: a sense of stifled potential within the people generally, and that potential is considerable in breadth and depth. May our countries re-establish the barriers that check and deny an overbearing onerous and deceitful bureaucracy.
I don't deny that Attlee's mass nationalisation program and industrial strategy were very flawed policies, but Thatcherism didn't work! It lead to asset stripping and look at the end results - mass outsourcing of Britain's industries, over reliance on other countries for imports, a misbalanced economy with it skewed towards financial services(which is of questionable economic benefit).
As the video shows, most of the damage was done before the Thatcher reforms and monetary squeeze to kill inflation. Unions were out of control. As for asset stripping, I don't think there were many assets worth taking by the end of the 1970s.
Manufacturing output actually grew under Thatcher, the issue was the reduction of labour intensification during that period, which happened in every other country in the world too.
Manufacturing as a percentage of the economy shrank by more in the early years of the 21st century than it did during the worldwide recession of the early 1980s (caused by the Iranian revolution).
We need to concentrate on high quality high skilled manufacturing but the government has allowed mass low quality and unskilled labour, this is not going to end well is it.
Appalachia suffered a similar fate due to people never being allowed to diversify the economy or build personal wealth once the government entangled coal companies took hold
To be fair, those demographics came here because Birmingham had a lot of work to offer in factories. Most of the people who are unemployed and problematic in this city today would have had good honest jobs making stuff 60 years ago.
Conservatives Govt seriously under funding it between 2010-2022 councils took a 50% cut in funding. Also birmingham council lost a law suit which costed millions and played a major role in the bankruptcy. But Look at what the Conservatives did to croydon and thurrock councils. With thurrock they took out a massive loan for some risky investments and it backfired fucking bankrupted them. 😂😂 They bankrupted my council Wiltshire which they've ran for the last 100 years fuck knows how they managed that because they dont invest here the economic illiterate twats dont.
As always pass the blame outside of the city etc… when obviously it’s the people moving into and those already living and voting in Birmingham that ruined it…Duh!!
This is a rather simplistic picture. Many factors were mot mentioned, the role that the Empire played, the mass exodus from Ireland to England during the Famine, remember this was "internal" migration, since Ireland was part of the UK at the time. Many Irish, like my great great grandparents, settled in Liverpool, many others in Birmingham. As for the Green Belt, this was demanded by towns like my own, Bromsgrove, which have already seen the loss of areas like Northfield and part of Rubery, absorbed into the city as 'new' suburbs. We had no wish to become part of the conurbation, as the former Worcestershire towns of Dudley and Stourbridge had been. Thanks to the Green Belt, we retain our character and history and attract millionaire residents to areas like Barnt Green, home of professional footballers and music stars like UB40
Good video -but would have been great if the roll of central banks, lack of financial investment and fiat currency were included in the reasons for decline.
'Focus on quality instead of quantity by Chinese '' underestimating your competitor is the first recipe for disaster. Today's China has near quality parity in many products in some it's ahead while lagging just behind in a few.
China has always been capable of very high quality. Their factories are simply manufacturing to contract. If the customer specifies a certain standard, and pays accordingly, then that is the standard which will be delivered. Their massive advantage is cheap energy, cheap labour, cheap land - and government support.
Absolutely. Its very much like they used to say of the american car industry. You can have good, cheap or fast. Choose two. Similarly with China, when western retailers like walmart buy off chinese supplies, they have a set of parameters. Price. product, features etc. The Chinese do the best they can do for the price offered. If Western consumers pay decent prices for chinese goods, they will get decent products. As it stands, western consumers only want the cheapest stuff from china, thus they get crappy goods.
Every country that embraces neoliberal economic policies always ends up with the death of highly productive manufacturing industries, replaced by a hyper-financialized economy driven by asset price speculation and fueled by debt leverage. (Note: "Asset" usually refers to real estate and company stocks). This always leads to a situation where economic wealth is concentrated in a handful of locations while the rest of the country stagnates, if not degrades. A two-speed economy where the capitol is opulent while the districts are barely alive. Many argue that the neoliberal economy espouses deregulation. What they leave out is that only the finance industry is deregulated. Everything else is regulated to death! The City of London is the perfect example...
But why will not the likes of Liz and her band of right wing nuts not admit that what they call 'Red Tape', is Heath and Safety rules that help to protect working people?
Absolute utter bollocks. The council went bust for two reasons A a disastrous equal pay judgement that was the largest ever in Europe B the massive cuts from central government whilst paasing on responsibility for many aervices particularly housing
While your point about the equal pay judgment is correct, it also fits with the broader trend of pay being determined by government, specifically the minimum wage, instead of market forces. For context, the judge in the case decided that dinner ladies should be paid the same as bin men. That these two jobs are completely different is apparently irrelevant. So I think this is consistent with the video’s thesis that government interventions have wrecked Birmingham.
You fail to mention that Conservative governments between 1951-64 were just as determined to force industry to relocate away from the Midlands to e.g. Liverpool and Scotland. You also make no reference to the economic impact of New Towns and why some succeeded and others failed. Finally, the Conservative Government of 1970-74 began with a free market strategy but, abandoned them following the rescues of Rolls Royce and Upper Clyde Shipbuilders. It was the failures of the Heath government that propelled Margaret Thatcher to become leader of the Conservative party in 1975 with all that followed from 1979. Your analysis whilst interesting needs to be more nuanced and accurate,
An interesting insight into my home town. However, I must correct you on something;- "Birmingham has more canals than Venice". In the early 80's, when the city hit rock bottom and looked like a right dump, a group of staff at the city's economic development unit brainstormed ideas to change people's perceptions of the city and came up with some things which became urban myths; the one about canals being one, "Birmingham has more acres of parkland than any other city in Europe" and "Birmingham has more trees than Paris" being two more. They deliberately dropped these into casual conversations with people like journalists and elected council members and soon they had spread like wildfire across the city and beyond. They are eminently believable because Birmingham does have a lot of canals, parks and trees. They were picked up and repeated by Brummies desperate to see something positive in their decaying city. I was one of them. This was told to the BBC journalist and radio presented, Ed Doolan in a radio interview with someone who worked at the EDU.
Thatcher was right about being more productive on the world scale but she failed as she had no plan on how to employ those unemployed by her policies and beating the unions, the people were abandoned unless you lived in the south and south west. There was little investment in new manufacturing industries to employ the masses unless it came from inward investment like Nissan, Honda etc. Triumph motorcycles and Land Rover proved how it could be done to some degree but it didn't happen often enough thanks to inept governments.
Stalin was shocked when Attlee sold him jet engines 'not to be used for the military'. It was not long before a Russian jet engine similar to the one sold was in the MIG 15 killing UN soldiers during the Korean war.
For an advanced economy you need skilled people to invent, develop and manufacture innovative products. As an engineering graduate in the early 1980's I experienced the consequences of the Tory deskilling of the engineering industry. Watering down engineering degrees to encourage young people onto courses many didn't want to do - better on and engineering degree than down at the job centre and forced to apply for menial jobs because you failed (or perhaps got 1) A level . Any engineer (particularly ones in the bigger companies) will have experienced useless undergraduates and graduates who weren't interested in engineering and knew little. Some of them openly bragging they would never have to pay off their student loan because they would never earn enough. As the video says, this country can't compete on low cost manufacturing. The problem is we can't compete on high value manufacturing either. With the last crop of decent engineers graduating in the 1970's and early 1980' now heading for retirement there are simply not enough clever young people in engineering. That isn't going to change any time soon, if at all. Cheap energy and relaxed planning rules wont change that either.
I grew up in Sheffield. It's a ghost town. 👻🏙️ Once the steel works went the decline was terminal. They tried to revitalise the city by building pointless things like Meadow hall which destroyed the city centre. They spent 5 years building a tram system which exacerbated the decline because no one could get to their business! I left 20 years ago and was glad to do so.
So long as you dont go out of the core central bits. Every large English city since the 2000s (perhaps 1980s in London) has followed the folly of american cities. Lavish money on making the few blocks of the centre look all new and shiny, and let the other 95% where most the population live and work go to rack and ruin. They havent adapted, they just have massive funds spunked on them taken from everywhere else.
But that's the point of the piece, isn't it? The cities originally evolved and built themselves, now they have to be artificially enhanced by authority
Deindustrialisation is what killed Birmingham, same as most of the North. Immigration hasn't exactly helped but it is not the main reason we are in this mess. The UK has been in decline since WW2.
@@cyborgbadger1015 The UK created Concorde in the post war era. And the internet and the world wide web. And many other innovations. It's ideological twaddle about "since WW2 - the post war era was literally called the "golden age of capitalism"
@@Phil-n7c The UK created Concorde - in collaboration with the French (that's why there's an extra 'e'). The internet was created in America (ARPANET). And the WWW was created by a Briton - working in Switzerland.
@@nigelgarrett7970 That's not true, the origin of the internet lies in packet switching which was invented by a British man in London working for the Royal Mail. Correct, Concorde was a joint endeavour with the French using public investment in both countries. An incredible achievement which we note the free marketeers have been unable to replicate. The swinging sixties were also "decline" were they? Britain is only one of two net exporters of music globally. British football the most popular anywhere? Who cares where Berners-Lee was working? This country's record on innovation is second to none including in the post war era. You're just regurgitating the same old ideological nonsense now the latest Right wing idea has failed even on its own terms
When an economist without detailed knowledge of the subject should not be allowed to give advice. This is why teaching economics should be radically changed by infusing with history, tech, and sociology.
I'm not gonna argue with you on the financial merits of what you say, because I'm no economist. But here's a question: given that you preach in favor of an unregulated industry with weaker/no worker unions etc. - I assume you'll agree to be the first in line for that hard-labour manufacturing job for £2/hour. Right? If the economy is "doing well" and 99% of the people don't feel it - the economy is not doing well. You seem to yearn for a time when the gap between the few rich and the many poor was massive (much more than today), when most Brits couldn't afford to see a doctor, when most Brits lived in horrible sanitary conditions. What for? Who's going to enjoy that "booming economy"? Let's face it: manufacturing jobs have left the West because people don't want to work like slaves and earn very little, and because in the West they can currently afford it. If you want to compete with China, you have to have these Apple factory-cities where so many people committed suicide that the management put nets underneath the windows to prevent people from jumping to their death. Again, I have to assume you'll be the first to volunteer to work in these conditions.
The argument put forward in this video is a classic example of deciding in advance that something is the case and then presenting every fact that supports it in the most simplistic way possible, whilst conveniently ignoring anything which doesn't. So Foxes Mints were unable to build a factory in the 1940s. By the 1980s, Leicester's growth had slowed. Well there you are, what more do you need to know? The ASI is a well known right-wing think tank. So by definition every single thing the Attlee government did must have been a mistake. That has to be the starting point for any analysis.
We smashed the post war consensus in the 80s. Are you seriously arguing that policies abandoned 45 years ago are to blame? The ASI just can't face up to what they've done to this country
What an interesting video, and extremely thought provoking. Of course it is 19 minutes of someone's understanding of what is destroying my home, Birmingham. In 1969 we were shipped out to Redditch to begin a new life with the movement of my firm and job. The movement was very well planned and gave me my wife and I children a new life from the slums of Birmingham to a tree covered Redditch, heaven. But of course forced removing due to financial poverty is a devastating process, and this video made light of migration. It is true I am afraid that successive government's and their narrow view of their own idealism that has exasperated the decline of Britain's manufacturing. The nightmares of union dominance and managerial inability to find common ground, or take on unreasonable union demands, again exasperated a real desire to improve and further industrialisation. At 74 I can look back at a life of being a young communist, a socialist, a liberal, a Conservative and now....nothing. No one is better or worse for deindustrialisation, we all found was individually to achieve it. Good video tho. Alan
"...Britain's success"... in 18th/19th century, industrialisation in response to "...economic and social conditions..." - a rose-tinted travesty of the truth. As if the average mill & factory-owners cared a hoot for the desperate conditions his workers slaved under or pertained previously. It was only embarrassment & religiously-inspired guilt, coupled with employee "combination" & rage, which mitigated the worst of industrialisation's consequences. And the need for modest employee literacy/basic skills & trainability. An employee having been expensively trained was a wasted asset without improvements in health. Employer benevolence was the exception.. "...High wages..." we are told, a consequence of such benevolence.. No, just a transitional blip from pre- to post-industrial eras, supply/demand transient anomalies. Low regulation in A.S.I.'s preferred regime is about zero-hours contracts, 60+ hour weeks American/Chinese style, declining Health & Safety provision/inspection/paid holidays, a race to the bottom. Only when the NHS is replaced with expensive USA-style health insurance will they be happy. Thatcher's "golden era" was all about a Reaganomic "trickle-down" illusion, now comprehensively debunked with excruciating income-gap widening due to the employee/employer power imbalance the A.S.I. so favours. AT least German capitalists have been prepared to invest long-term, which was the bedrock of their success outstripping us. Now Chinese government direction of investment/industry seems at odds with A.S.I. 's core nostrums
@@jamie59685 Did I say that ? No. If you think those mill/factory owners were typically philanthropists ... as well as your Port Sunlight, Bournville village etc the vast majority were in for exploiting nimble-fingered kids, subjecting women workers to "phossy-jaw" (Google it) & all the rest. No workers' comp for them, outrageously long hours/hideous conditions too.
@@torquemaddertorquemadder2080Oh. So now you're blaming it on a couple of immigrants. There's more to economics than blaming the little guy. Perhaps you should start by blaming British governmental policy instead.
Brum really peaked during ww2, aircraft manufacturing, castle Bromwich, BSA, Britain Small arms, leading to British car and motorcycle manufacturers, like my first Car, Morris 1100, happy days, when Chelmsley Wood was still green belt.
Annoyingly simplistic. So the downturn in the 30s was caused by external factors, whereas the only possible explanation considered for postwar decline is government policy. If ‘new industrial centres’ had sprung up in the postwar years, would those not have drawn workers and investment away from Birmingham? I could do with hearing your explanation for how foreign energy supplies are to be secured without government action.
You failed to explain why e.g. the Labour government under Harold Wilson considered the growth of Birmingham as "threatening". Environmental objections had not been thought as important in the early 1970s. I think it is not wrong if a government cares about threats, but the error might have been that they saw a threat where actually was happiness.
I suppose you want go back to children work 12 hours a day. Or slums with no toilets. This is crap. Exactly what you can expect from the Adam Smith Institute.
I am surprised to hear Attlee being a cause in the UK's decline. The decline started in the 1880's and became immeasurably worse from about 1970 leading eventually to Thatcher He was responsible for serious social/educational reform and had a good attitude to the Empire. Bearing in mind he had power over a bankrupt nation aided and abetted by Lend Lease ; as of now I think well of him. I lived and worked in Coventry from the 50's to 2000. I cant see the disaster that has occurred had much to do with Attlee
@@physiocrat7143 Agreed, but it's questionable if ALL post WW2 UK taxes were "ruinous". Some certainly were and it's also true that an economy can thrive with low taxes (e.g. Hong Kong), but taxation itself isn't problematic. The problem is poor governance. When it was created, the UK welfare state was designed as a "(helping) hand up", but over successive decades, to secure votes from an aging population, politicians have turned it into a "hand out". Meanwhile, over the same period, taxes have fallen. Clearly, taxation isn't the issue.
@GonzoTehGreat HK thrived on the revenue from the sale of 40 year leases. Taxation is very much the issue. If you tax windows then you will have bricked up windows. If you tax honest work and trade, you can work out what the results will be
LOL yeah we're really socialist in the UK aren't we. You just can't face up to what 45 years of neoliberalism have done. You're also ignoring that the ASI are open borders
This report was an excellent overview and analysis of UK industrial policies over the decades. Thankfully you have moved past the Thatcher bashing explanations to hit upon mure depressing issues like govrernment intervention and a belief that the government knows whats best. Atllee and Wilson were besotted with state intervention which ultimately meant endless taxpayer support for uneconomic behemoths. Look at how the NHS contines as a failing enterprise to this day. It is a bottomless pit. Well done!
Brilliant. Birmingham was allowed to 'develop' aaccording to the 'schedule of history' - roughly 'I have seen the future and it works'. This tyoe of prophecy is still with us - so-called 'Climate Change' is its latest manifestation. Birmingham demolished its centre, and surrounded it with ring roads, thus ensuring a complete separation of city and suburb, with dire social consequences. The Rootes Group of car makers was destroyed by government intervention when it was forced to move to Linwood, Scotland. The local labour force had no experience of car production, and went on semi-permanent strike, despite wages being nearly twice the local level. Together with a strike in its Acton factory, Rootes failed shortly afterward. As with today's governments, anything other than the real problems facing people were considered, whilst dream state after dream state took up the time and tax money which should have been spent elsewhere.
It seems that the ASI would champion the idea of mass migration leading to places suffering more congestion, shortage of public services, overcrowding etc while other areas end up as dilapidated ghost towns. Isn't a simple solution provide incentives to redistribute opportunities around the country? Also people get attached to their local area. I moved away from my local area to London for opportunities, but it meant severing ties to family, friends and areas I knew and loved. In time I got to know others in the area but London is full of people feeling lonely and isolated as they have moved there and it is relatively hard to get to know people there compared to other places.
Britain was booming because of India until 1947 on the expense of looting wealth from India and getting free cotton from it and exporting readymade garments from Britain factories from Manchester and Birmingham after India became free British economy collapsed .
It was called trade . Birmingham was booming until interest rates hit 15% in the 1980s .Also tea planted by Britain in Ceylon ,a India ,Kenya and Malawi.
really interesting and informative video. as someone who has lived through many of the changes to birmingham, coventry and liecester over many it explains mush of the hidden background to my experiences, some political bias comes through though.
This should be seen by every incoming government- UK has been paralysed for decades- we ended up making poor quality good by low skilled labour- now its bankers barbers and baristas- the government strategy should be cheap energy, skills training ( tax breaks for training - not useless degrees) bulldozer old brown field site, like touch regulation on these sites- and high quality medium rise housing for people and their families- then let the market evolve
It should have been left to grow organically, and not have ideological restraints put on it. Ideology tends to be illogical. I remember in the late 60's and into the 70's, there seemed to be never ending strikes and one wonders if the strikes and joining the EC in 1972, was a two pincer attack on the country.
once that london gets all it needs and then all it doesn't need will the government look to other places, but to just think about improving those areas before heading to london again for another railway.
@ They were being paid equally for the work they were doing. Working in a servery and dishing up food doesn’t equate to the filthy job bin men and WOMEN do. They are paid more because of the nature of the work.
The government should be a fair-play regulator, not an intervenor in the market. This is what happened during the Victorian era, when Britain excelled in industrialisation. Hopefully, people will vote to someone who comes up with more right aligned economic policies over the left socialist ideologies.
As the video points out, things were going wrong in the late 19th century. There were two factors - the growing strength of trade unions, which almost always had a luddite attitude to new machinery and technology. Secondly, the state education system spent more and more money teaching useless knowledge rather than the know-how that a modern economy needs.
Working class people were not getting their fair share of the cake and were seduced by socialism. It started with the Inclosures of the 18th century and the Dark Satanic Mills, the Peterloo massacre, Chartist, etc.
The trade unions were what ensured the wealth workers created was actually spread around the community more. You guys know very well neoliberalism is coming to an end and you just can't accept it
Adam Smith Institute has an "opaque corporate structure" & is coy about its funding sources - Koch Brothers ? US Hedge Fund titans ? The day they level with us is the day we can start taking them seriously
I always wonder whos got them. I used to religiously read ASI articles in the 2000s as a student & just afterwards. They were straightforward & libertarian back then. Suddenly in the mid 2010s they re-aligned themselves as neo-liberal (because that ideology has been such a roaring success!) & got progressively more insufferable. Bit like the Sierra Club being anti mass immigration until the mid 90s, at which point, with donor pressures, it reversed its position (and lost whatever integrity it had)
13:05 Basically Birmingham wasn't allowed to develop because it wasn't London.
Haha look at Liverpool in 18th Century and the 1970s.
@@scousebadger0077And how did Thatcher treat Liverpool?
salt and vinegar with those chips sir?
That’s insane. That’s self sabotage because look at Birmingham now. Britain truly pathetic sometimes.
It’s full of migrants who don’t fund themselves that’s why it’s gone bankrupt, London hasn’t because it’s financial hub.
Absolutely tragic. A world leader in innovation and industry reduced to impoverishment.
You ceded an empire. What did you expect?
Once Great Britain Ha?
@@Drunken_Master Empire has got nothing to do with Birmingham's problems.
@@redwine2664 Umm yes? It was...
@@DFzonefd but for whom? Qui Bono? Not the working class?
This is what happens when one listens to economists.
Not all economic activities are equal. There is something different about manufacturing.
When the UK was the workshop of the world, it became the richest country in the world.
When the USA was the workshop of the world, it became the richest country in the world.
China is now the workshop of the world, it has got very much richer recently.
The UK is never going to compete internationally on the basis of wage rates. So it has to substitute energy for labour. That means the UK should be pursuing a low cost energy policy. Also, it has to be able to do things others cannot. So technological education and training should be a priority.
None of this is "rocket science".
However, manufacturing as you can see is susceptible to being overtaken by other nations. The Soviet Union had a very large industrial manufacturing strategy and people were poorer.
The key thing is having a balance and ensuring high employment in key areas. Germany for example manufacturing is suffering due to weak domestic and foreign demand, in which case you need the Services sector to pick up the slack. Its not rocket science, its economics which arguably can be more complex at times as higher order multi variate problem compared to rocket science.
40% of British labour costs are tax There is a bit of scope for lightening the burden.
@@conconmc The thing is rocket science is *science*, with scientific theories. Economics is a bunch of personally held ideals, unsupported by strong evidence, with little predictive power.
I was a Universty academic and was called in by the head of a top business school to vet and _viva_ his PhD student as she was doing complex maths which overturned his pet mathematical model. Much to the head's chagrin I found her maths to be faultless, and her arguments, based on her stated assumptions, led to her conclusion. She got her PhD.
The problem with economics is the assumptions, as they reduce the domain of discourse.
And the ASI was one of the think tanks which backed deindustrialising Britain
@@frogandspanner - Interesting, major advances invariably result from extraordinary individuals vision and will power, and these individuals are rarely economists, academics, bureaucrats or politicians
Why invite people from commonwealth countries to do the crappy jobs and then close down all the factories. What did the governments think would happen, apart from racism and a blame culture
Because that never happened.
They were never invited. The only people 'invited' via formal means by the government were Eastern Europeans under the Westward Ho and Balt Cygnet programs. Some italians were requested by individual companies like London Brick, but never new commonwealth/NCWP sorts. For fairly obvious reasons. Why introduce racial, religious and, in the case of anywhere but the west indies, language fault lines into what was then a largely stable & homogeneous nation.
The whole 'we begged them to come' is bogus 21st century revisionism. The only begging that went on was the British government begging the newly independent governments in the subcontinent, and the colonial administrations in the West Indies to stop them from coming by, for example, denying them exit visas.
Thats a lot of it. People blame de-industrialization. But look at two neighbouring cities that have suffered similarly from that in an international context. Detroit Michigan & Windsor Ontario. Both historically dependent on carmaking. One has gone to hell, the other is still frequently regarded as one of the safest & nicest cities in Canada.
There is one big difference though...
@@Nick-io9uk. Does it make feel better to blame people’s skin color? Why do you think they become like that ….what was the reason.? Don’t worry your folks( Anglo) will find that out soon, the drugs are killing of you people, the women are not having family ( population decline) and the alcohol is the sleeping aid for many of YOU! Let’s see how far you people fall 😂 I bet you will act a victim
@@Nick-io9uk One's in Canada receiving help from the government to respecialise and the other has a police force that specifically targets and victimises young people of colour you mean? I agree.
@@Nick-io9uk ones in America and ones in Canada.
Is that it.
Genius.
You should mention the crippling taxes on investment - in the late 1960s these taxes went up to insane levels.
That's got nothing to do with what's happened to Birmingham. The ASI's open borders' policy is far closer to the reason
Hold on a second, if you invested in GB in that time period, you had to pay a tax based on how much money you invested? If yes, WTF?????
@@babayaga6376 LOL what exactly has any of these claims got to do with the fact that since 1979 the ASI and IEA have dominated policy making? They're literally lying about what's happened and pretending like they've had no influence these last 45 years. This is how we know an ideology has reached its end point
the 1947 Town and Country Planning Act removed the incentive for local councils to permit building infrastructure. The country is run by Oxbridge graduates who pay no price for being wrong. HR is the only growth profession in the UK due to one set of Oxbridge grads bringing in thousands of regulations in relation to employment. Now Isobel an Oxbridge arts graduate gets paid 250k a year to ensure companies have the right quota of sexual preferences and colours employed.
Local councils were prohibited from building social housing by Thatcher. This didn't help either the building industry, nor did it help 21st century Britain, now suffering a crippling housing shortage
The West Midlands suffered more than anywhere else in Britain from the process of deindustrailization, in particular the decline of the motor industry.
Ain't it the truth
The demographics have a lot to do with it, no city can afford to pay men to attend mosques.
We go to the mosque for free. Try it
@ponderingspirit that's not what he means.
He means the gov are paying older muslims on thr dole that don't work and just go to a mosque. Try read the statement properly
@@ponderingspirit Yes, instead of working on Fridays...
@@I_am_Jesus_though What data shows they're on the dole? And how do you know which mosque they're attending? let alone their whereabouts. If they're older, they're of pensioable age. What's the problem? You weird little racists.
@@I_am_Jesus_though He means that a huge proportion (not just the old) do not work and draw welfare instead
With the most expensive electricity in the world British industry is only going to continue to close.
Rather unconvincing attempt to shift the blame for deindustrialisation away from Thatcherism and free market dogma. British industry paid the price for being the first country to industrialise (no competition in world markets) and then struggling to modernise with outdated institutions and lack of investment. Birmingham is a classic case with its small workshop based industries. The impact of the world wars particularly the tight constraints on investment after WW2 should not be underestimated. The post war attempts to modernise and rationalise industries through mergers were too little too late. The deliberate policy of deindustrialisation of the 1980s onwards with the focus shifting to services and particularly the finance sector (which formed the social base of Thatcherism) glossed this failure over for a while particularly with North Sea Oil revenues but has had disastrous long term consequences
I have learnt so much from this report. Birmingham’s decline is the result of government folly, from 1945 onwards. I can hardly believe the Distribution of Industry Act was passed in 1945.
A lot of people in Britain have always been prejudiced against B'ham and the rest of the Midlands.
This is Atlas Shrugged level conspiracy like the novel.
Anyone who spends 10min in town will be able to answer most of these questions lmao
And it's not so much about why but how
That's NOT the root cause... Watch the video mush.
@@vlad.the.impaler. Britain's wealth was built by having those people within the empire, but prohibited from trading with other European powers. The opening up and loss of the colonies destroyed Britain's markets. So you're right for the wrong reasons.
To many locals on benefits 😂if it wasn't for the foreigners there wouldn't be a country
Its sad to watch this and know it mostly falls on deaf ears in Britain
In 1780 the West Midlands was a world first. The world's first mass-industrial hub, where production equalled coin, commodity, wealth and on an unimaginable scale. But the debt-based City of London ensured that that wealth, largely, would never go to its producers. It would simply pay and service debt. Which is why Britain remains debt-enslaved.
I wonder what changed in Birmingham between 1960 and now.. its a real head scratcher..
The UK has been going 50% at best ever since WW2. No idea why but every cisris that comes up seems to last longer in the UK than in comparable countries?
Your just afraid to say it.
Britain made pretty much every country in their, ever so BRUTAL, empire independent, and went through 2 an entire world wars, that bankrupted the country. So, people from all of those places (a lot of whom were poor because of what Britain did in their land) came to Britain (some were invited) for better economic opportunity. I find it hilarious that so many of you focus on the “issue” of immigration, but never actually want to discuss WHY people migrated to Britain post WWII…
@@I_am_Jesus_though No, you're just afraid Jesus. Ever since you were on that cross
@@liamo8932 Maybe you're young or naive. Either way, I wouldn't mock God my friend.
The British government taxed its economy to death starting in 1944. The taxation of wages, goods, services and the tools of production will inevitably destroy an economy. Trying to run a welfare state with such a tax system is suicidal.
Neither left nor right acknowledge this. We are now approaching the end of the doom loop.
The truth is the diametric opposite: we slashed taxes in the 80s and now the country is at the mercy of the private interests that the ASI represents. You also left out what deregulating the banks left us with
@@Phil-n7c
Taxes were not slashed in the 80s. The burden was transferred to VAT, probably the most damaging and inefficient tax ever devised.
@@physiocrat7143 That's what Thatcher is most famous for: cutting taxes on the well off. You can lie or deny it all you want, that's what happened.
The reason VAT was created and increased by the Tories was to transfer more of the tax burden to the less well off
You guys can cry and wail all you want, you just can't accept that neoliberalism has been a disaster and that it's coming to an end
Britain wrecked itself fighting wars it couldn’t afford in the first half of the 20th century
America is doing the same thing now
Col Macgregor Ret
Post WW2, economic growth was the greatest in the 1950s-60s, when taxes were at their highest.
As the Scandinavian economies prove, high taxation doesn't, by itself, cause economic stagnation.
What matters is governance.
The UK failed to successfully transition from relying on its empire to becoming self-reliant.
GOD I AGREE WITH THIS. The treasury spreadsheets have wrecked this country. Let people and business choose their paths rather than trying to impose a politburo centrally planned strategy. its so obvious.
The country is completely dominated by the financial and corporate interests that the ASI represents. If the treasury has been serving anyone it's them.
@@Phil-n7c nonsense, the ASI do not represent financial and corporate interests anymore than they represent small business and workers. Anyone who wants economic freedom is represented by ASI. You my friend are part of the 'useful idiots' who keep the corporate overlords in the comfort they've become accustomed to. These people fear free markets and competition more than anything as they depend dearly on government regulation and handouts from labour and the tories to keep them afloat. The opposite of what ASI stands for entirely.
@@Phil-n7c Rubbish. Utter rubbish.
Yup. Laissez-faire works. Governments and bureaucrats don't.
So how come 40 years of the Adam Smith Institute getting its way hasn't reversed all this?
no mention of the poor labour relations in the 1970s which did a lot to accelerate the decline of the British-owned car industry largely based in the Birmingham area
That was a symptom of the failed interventionism.
@@stevenfarrall3942 Rolls Royce was a good example of govt interventionism in the 1970s. How come they got it wrong at British Leyland?
@@erongi233 Not really. RR got into trouble because of a priori failed government interventionism and bad money.
@stevenfarrall3942 total rubbish. I worked as an auditor of RR in 1970s. They went bust,laddie, because they had contract with Lockheed at too low a price on their RB211.not really!
@@erongi233 I agree with your assertion regarding the RB211 costs being out of control and the connected issue with the Lockheed contract. If re-read my comment I say 'a priori failed government interventionism and bad money. By 1971 the inflationary consequences of the welfare state and other factors were wreaking their havoc on industries like aerospace. This was making GBP weaker and leading to a lot of problems for firms trading internationally (ss the ASI video also states). Money is a nationalised commodity in the UK - the post WW2 labour government nationalised the BofE - enabling the massive over-production of money and credit. This tends to make manufacturing of things like aircraft harder to do profitably because of the long lead times, whereas it makes the production of goods for immediate consumption easier. It was a priori government failure that destabilised RR. Oh and FYI I did a dissertation on the RR failure for my business studies course.
Ronald Regan summed it up, the most frightening words ever spoken "I'm from the government, I'm here to help you"
The irony of the head of government saying that seems to have been lost on him and everyone who quotes him.
@@RW-nr6bhIndeed it does
Britain wrecked itself fighting wars it couldn’t afford in the first half of the 20th Century
America is doing the same thing this century
Col Macgregor Ret
True. Especially it should not have been involved in WWI. It should have allowed Austria to fight its war against Serbia on its own. Britain found a chance to fight Germany and at the end it lost the empire.
If America today or Britain in the 1900s can't afford wars then nobody can. And yet they happen. Why is that?
@@georgerj2419 Britain joined WW1 to protect Belgium. British foreign policy has always recognised that a mainland Europe dominated by one country is bad for Britain.
@@nigelgarrett7970100% agree. But that still begs the question, should we have sacrificed so much.
@@nigelgarrett7970How did that work out as Germany (even a divided country) remained the strongest country on the continent- especially economically
Belgium was a pretext and excuse for those that wanted war
Britain sent an army over that wasn’t designed to fight against large continental armies
We should have told the Germans that we would keep them out of the Channel and North Sea if they had designs on channel ports.
So basically you're saying we should turn a blind eye to the destruction of what little natural area still survives. Yes, the industrial revolution created a lot of wealth, but on the back of huge amounts of environmental destruction, as well as worker exploitation. Your claim that workers of that period were well paid is just plain wrong, it was a time of children up chimneys and factory workers trudging to the mill in the early morn. We don't want to return to that type of exploitation for the sake if GDP and the enrichment of a small minority of the population.
Exactly my thinking. I am no socialist (but I am somewhat of a social-democrat), and it's possible that some of what he says is correct, but he seems to idealize a time when the "little people" suffered much more than they do today. There are things to repair. Lazy people shouldn't get unemployment money. However, sick people who can't work should. It's complicated. It's not black and white.
Well this is The Adam Smith Institute
If the Empire was successfully reformed in the 19-th century to integrate the disjointed economies across the globe in a common market, Britain could have wielded the Great War from a much better position, avoiding the mounting costs of maintaining overseas territories and keep its status as net creditor and industrial leader.
But alas, that would have required forethought and some modicum of contrition. Instead, we got India/Pakistan, Palestine/Israel and several other wars over the boundaries we imposed.
How about not getting involved a stupid war centred in the Balkens
@@Sean-p3o The Balkans are closer to some parts of the UK than some parts of the UK are to each other. Stopping people from thinking you can murder your way over other people's borders is why you've never had to go to war.
Omg, grinding my teeth to paste. You are definitely right in the matter of government suppressing the organic movement within the country of capital and labour. There is nothing useful I can add except the observation of a sympathetic outsider that heartened me on my only visit to your islands, May/June 2016: a sense of stifled potential within the people generally, and that potential is considerable in breadth and depth.
May our countries re-establish the barriers that check and deny an overbearing onerous and deceitful bureaucracy.
I don't deny that Attlee's mass nationalisation program and industrial strategy were very flawed policies, but Thatcherism didn't work! It lead to asset stripping and look at the end results - mass outsourcing of Britain's industries, over reliance on other countries for imports, a misbalanced economy with it skewed towards financial services(which is of questionable economic benefit).
As the video shows, most of the damage was done before the Thatcher reforms and monetary squeeze to kill inflation. Unions were out of control. As for asset stripping, I don't think there were many assets worth taking by the end of the 1970s.
Manufacturing output actually grew under Thatcher, the issue was the reduction of labour intensification during that period, which happened in every other country in the world too.
..didn't thatcher allow council house renters buy their rented homes and be property owners for the first time in centuries?
Manufacturing as a percentage of the economy shrank by more in the early years of the 21st century than it did during the worldwide recession of the early 1980s (caused by the Iranian revolution).
@@Leah-ju8htThey ended up owned by landlords.
Funny, how in almost all videos about the decline of British industry there will be a clip of an Austin/Morris 1100 or 1300😂🤣
We need to concentrate on high quality high skilled manufacturing but the government has allowed mass low quality and unskilled labour, this is not going to end well is it.
Interesting. Same thing happening now, worldwide maybe, with extreme left governments' mandates for EVs which are crushing vehicle industries.
EVs are so good that the government has to give them tax breaks and ultimiately mandate them.
What does the V in EV stand for?
Appalachia suffered a similar fate due to people never being allowed to diversify the economy or build personal wealth once the government entangled coal companies took hold
Probably something to do with the demographics changing decade upon decade since the 60s.
To be fair, those demographics came here because Birmingham had a lot of work to offer in factories. Most of the people who are unemployed and problematic in this city today would have had good honest jobs making stuff 60 years ago.
who ran Birmingham council during its decline?
Labour council
Conservatives Govt seriously under funding it between 2010-2022 councils took a 50% cut in funding. Also birmingham council lost a law suit which costed millions and played a major role in the bankruptcy. But Look at what the Conservatives did to croydon and thurrock councils. With thurrock they took out a massive loan for some risky investments and it backfired fucking bankrupted them. 😂😂
They bankrupted my council Wiltshire which they've ran for the last 100 years fuck knows how they managed that because they dont invest here the economic illiterate twats dont.
@@ellismeah8110 Really? Has it always been Labour? Bosworth and Whitby beg to differ.
As always pass the blame outside of the city etc… when obviously it’s the people moving into and those already living and voting in Birmingham that ruined it…Duh!!
This is a rather simplistic picture. Many factors were mot mentioned, the role that the Empire played, the mass exodus from Ireland to England during the Famine, remember this was "internal" migration, since Ireland was part of the UK at the time. Many Irish, like my great great grandparents, settled in Liverpool, many others in Birmingham.
As for the Green Belt, this was demanded by towns like my own, Bromsgrove, which have already seen the loss of areas like Northfield and part of Rubery, absorbed into the city as 'new' suburbs.
We had no wish to become part of the conurbation, as the former Worcestershire towns of Dudley and Stourbridge had been.
Thanks to the Green Belt, we retain our character and history and attract millionaire residents to areas like Barnt Green, home of professional footballers and music stars like UB40
Good video -but would have been great if the roll of central banks, lack of financial investment and fiat currency were included in the reasons for decline.
'Focus on quality instead of quantity by Chinese '' underestimating your competitor is the first recipe for disaster. Today's China has near quality parity in many products in some it's ahead while lagging just behind in a few.
China has always been capable of very high quality. Their factories are simply manufacturing to contract. If the customer specifies a certain standard, and pays accordingly, then that is the standard which will be delivered. Their massive advantage is cheap energy, cheap labour, cheap land - and government support.
Absolutely.
Its very much like they used to say of the american car industry. You can have good, cheap or fast. Choose two.
Similarly with China, when western retailers like walmart buy off chinese supplies, they have a set of parameters. Price. product, features etc. The Chinese do the best they can do for the price offered.
If Western consumers pay decent prices for chinese goods, they will get decent products. As it stands, western consumers only want the cheapest stuff from china, thus they get crappy goods.
Every country that embraces neoliberal economic policies always ends up with the death of highly productive manufacturing industries, replaced by a hyper-financialized economy driven by asset price speculation and fueled by debt leverage. (Note: "Asset" usually refers to real estate and company stocks). This always leads to a situation where economic wealth is concentrated in a handful of locations while the rest of the country stagnates, if not degrades. A two-speed economy where the capitol is opulent while the districts are barely alive.
Many argue that the neoliberal economy espouses deregulation. What they leave out is that only the finance industry is deregulated. Everything else is regulated to death! The City of London is the perfect example...
But why will not the likes of Liz and her band of right wing nuts not admit that what they call 'Red Tape', is Heath and Safety rules that help to protect working people?
Absolute utter bollocks. The council went bust for two reasons
A a disastrous equal pay judgement that was the largest ever in Europe
B the massive cuts from central government whilst paasing on responsibility for many aervices particularly housing
While your point about the equal pay judgment is correct, it also fits with the broader trend of pay being determined by government, specifically the minimum wage, instead of market forces.
For context, the judge in the case decided that dinner ladies should be paid the same as bin men. That these two jobs are completely different is apparently irrelevant.
So I think this is consistent with the video’s thesis that government interventions have wrecked Birmingham.
But yet - they still come in large numbers - especially when they are treated better than the indigenous population
To be clear, why do you repeat should such half-truths and lies? For are not the right-wing just playing the race hate card?
by whom.?
You fail to mention that Conservative governments between 1951-64 were just as determined to force industry to relocate away from the Midlands to e.g. Liverpool and Scotland. You also make no reference to the economic impact of New Towns and why some succeeded and others failed. Finally, the Conservative Government of 1970-74 began with a free market strategy but, abandoned them following the rescues of Rolls Royce and Upper Clyde Shipbuilders. It was the failures of the Heath government that propelled Margaret Thatcher to become leader of the Conservative party in 1975 with all that followed from 1979. Your analysis whilst interesting needs to be more nuanced and accurate,
We have had 45 years of neolib economic disaster,so why is it Atlees fault?
An interesting insight into my home town.
However, I must correct you on something;- "Birmingham has more canals than Venice". In the early 80's, when the city hit rock bottom and looked like a right dump, a group of staff at the city's economic development unit brainstormed ideas to change people's perceptions of the city and came up with some things which became urban myths; the one about canals being one, "Birmingham has more acres of parkland than any other city in Europe" and "Birmingham has more trees than Paris" being two more.
They deliberately dropped these into casual conversations with people like journalists and elected council members and soon they had spread like wildfire across the city and beyond.
They are eminently believable because Birmingham does have a lot of canals, parks and trees. They were picked up and repeated by Brummies desperate to see something positive in their decaying city. I was one of them.
This was told to the BBC journalist and radio presented, Ed Doolan in a radio interview with someone who worked at the EDU.
Thatcher was right about being more productive on the world scale but she failed as she had no plan on how to employ those unemployed by her policies and beating the unions, the people were abandoned unless you lived in the south and south west. There was little investment in new manufacturing industries to employ the masses unless it came from inward investment like Nissan, Honda etc. Triumph motorcycles and Land Rover proved how it could be done to some degree but it didn't happen often enough thanks to inept governments.
Politicians went from allowing growth to managing growth ala James Burnham.
Stalin would be proud of the U.K. State interference
And was not Thatcher proud at the way important state assets were (under)sold to her mates in The City?
Stalin was shocked when Attlee sold him jet engines 'not to be used for the military'. It was not long before a Russian jet engine similar to the one sold was in the MIG 15 killing UN soldiers during the Korean war.
If she didnt take over we could of been a powerhouse still but we seem to be falling on the economical ladder
For an advanced economy you need skilled people to invent, develop and manufacture innovative products.
As an engineering graduate in the early 1980's I experienced the consequences of the Tory deskilling of the engineering industry. Watering down engineering degrees to encourage young people onto courses many didn't want to do - better on and engineering degree than down at the job centre and forced to apply for menial jobs because you failed (or perhaps got 1) A level . Any engineer (particularly ones in the bigger companies) will have experienced useless undergraduates and graduates who weren't interested in engineering and knew little. Some of them openly bragging they would never have to pay off their student loan because they would never earn enough.
As the video says, this country can't compete on low cost manufacturing. The problem is we can't compete on high value manufacturing either. With the last crop of decent engineers graduating in the 1970's and early 1980' now heading for retirement there are simply not enough clever young people in engineering. That isn't going to change any time soon, if at all.
Cheap energy and relaxed planning rules wont change that either.
Manchester and Leeds adapted, both cities are visually booming! Leeds south bank is the largest redevelopment project in Europe
I grew up in Sheffield. It's a ghost town. 👻🏙️
Once the steel works went the decline was terminal. They tried to revitalise the city by building pointless things like Meadow hall which destroyed the city centre. They spent 5 years building a tram system which exacerbated the decline because no one could get to their business!
I left 20 years ago and was glad to do so.
So long as you dont go out of the core central bits. Every large English city since the 2000s (perhaps 1980s in London) has followed the folly of american cities. Lavish money on making the few blocks of the centre look all new and shiny, and let the other 95% where most the population live and work go to rack and ruin.
They havent adapted, they just have massive funds spunked on them taken from everywhere else.
But that's the point of the piece, isn't it? The cities originally evolved and built themselves, now they have to be artificially enhanced by authority
Cheap energy! But not a mention of why it isn't, nor the delusions that underpin why it isn't.
Immigration killed Birmingham.
And the ASI are total open borders
Deindustrialisation is what killed Birmingham, same as most of the North. Immigration hasn't exactly helped but it is not the main reason we are in this mess. The UK has been in decline since WW2.
@@cyborgbadger1015 The UK created Concorde in the post war era. And the internet and the world wide web. And many other innovations. It's ideological twaddle about "since WW2 - the post war era was literally called the "golden age of capitalism"
@@Phil-n7c The UK created Concorde - in collaboration with the French (that's why there's an extra 'e'). The internet was created in America (ARPANET). And the WWW was created by a Briton - working in Switzerland.
@@nigelgarrett7970 That's not true, the origin of the internet lies in packet switching which was invented by a British man in London working for the Royal Mail.
Correct, Concorde was a joint endeavour with the French using public investment in both countries. An incredible achievement which we note the free marketeers have been unable to replicate.
The swinging sixties were also "decline" were they? Britain is only one of two net exporters of music globally. British football the most popular anywhere?
Who cares where Berners-Lee was working? This country's record on innovation is second to none including in the post war era. You're just regurgitating the same old ideological nonsense now the latest Right wing idea has failed even on its own terms
I know it bad but at least we have thousands of kabab shops.
When an economist without detailed knowledge of the subject should not be allowed to give advice. This is why teaching economics should be radically changed by infusing with history, tech, and sociology.
you forgot the BSA group 1 in 4 motorcycles where once a BSA and cadburys at Bourneville where i went to school
The trouble is heavy industry is a major pollutant, we need a system that is productive without being environmentally devastating.
I'm not gonna argue with you on the financial merits of what you say, because I'm no economist. But here's a question: given that you preach in favor of an unregulated industry with weaker/no worker unions etc. - I assume you'll agree to be the first in line for that hard-labour manufacturing job for £2/hour. Right?
If the economy is "doing well" and 99% of the people don't feel it - the economy is not doing well. You seem to yearn for a time when the gap between the few rich and the many poor was massive (much more than today), when most Brits couldn't afford to see a doctor, when most Brits lived in horrible sanitary conditions. What for? Who's going to enjoy that "booming economy"?
Let's face it: manufacturing jobs have left the West because people don't want to work like slaves and earn very little, and because in the West they can currently afford it. If you want to compete with China, you have to have these Apple factory-cities where so many people committed suicide that the management put nets underneath the windows to prevent people from jumping to their death. Again, I have to assume you'll be the first to volunteer to work in these conditions.
Wokeness has been around for centuries.
Is it not telling how, even if many have no understanding of the true history of Woke, the Tory right continue to over-use the term?
The argument put forward in this video is a classic example of deciding in advance that something is the case and then presenting every fact that supports it in the most simplistic way possible, whilst conveniently ignoring anything which doesn't. So Foxes Mints were unable to build a factory in the 1940s. By the 1980s, Leicester's growth had slowed. Well there you are, what more do you need to know? The ASI is a well known right-wing think tank. So by definition every single thing the Attlee government did must have been a mistake. That has to be the starting point for any analysis.
Attlee was a labour politician so of course he destroyed Birmingham, the labour party destroys everything it touches
Have you forgotten how fast Liz and her band of right wing nuts nearly sank the country?
not a mention of the post war consensus?
We smashed the post war consensus in the 80s. Are you seriously arguing that policies abandoned 45 years ago are to blame? The ASI just can't face up to what they've done to this country
@@Phil-n7c no not at all, it would have given more context to the film.
What an interesting video, and extremely thought provoking. Of course it is 19 minutes of someone's understanding of what is destroying my home, Birmingham. In 1969 we were shipped out to Redditch to begin a new life with the movement of my firm and job. The movement was very well planned and gave me my wife and I children a new life from the slums of Birmingham to a tree covered Redditch, heaven.
But of course forced removing due to financial poverty is a devastating process, and this video made light of migration.
It is true I am afraid that successive government's and their narrow view of their own idealism that has exasperated the decline of Britain's manufacturing. The nightmares of union dominance and managerial inability to find common ground, or take on unreasonable union demands, again exasperated a real desire to improve and further industrialisation.
At 74 I can look back at a life of being a young communist, a socialist, a liberal, a Conservative and now....nothing. No one is better or worse for deindustrialisation, we all found was individually to achieve it. Good video tho. Alan
Mercia was more productive than Wessex, thats what was up.
Are you trying to make me like Clement Richard Attlee, 1st Earl Attlee more? I hate Birmingham!
Didn't only destroy Birmingham he destroyed Britain.
"...Britain's success"... in 18th/19th century, industrialisation in response to "...economic and social conditions..." - a rose-tinted travesty of the truth. As if the average mill & factory-owners cared a hoot for the desperate conditions his workers slaved under or pertained previously. It was only embarrassment & religiously-inspired guilt, coupled with employee "combination" & rage, which mitigated the worst of industrialisation's consequences. And the need for modest employee literacy/basic skills & trainability. An employee having been expensively trained was a wasted asset without improvements in health. Employer benevolence was the exception.. "...High wages..." we are told, a consequence of such benevolence.. No, just a transitional blip from pre- to post-industrial eras, supply/demand transient anomalies. Low regulation in A.S.I.'s preferred regime is about zero-hours contracts, 60+ hour weeks American/Chinese style, declining Health & Safety provision/inspection/paid holidays, a race to the bottom. Only when the NHS is replaced with expensive USA-style health insurance will they be happy. Thatcher's "golden era" was all about a Reaganomic "trickle-down" illusion, now comprehensively debunked with excruciating income-gap widening due to the employee/employer power imbalance the A.S.I. so favours. AT least German capitalists have been prepared to invest long-term, which was the bedrock of their success outstripping us. Now Chinese government direction of investment/industry seems at odds with A.S.I. 's core nostrums
yes because before that they're lives were so fantastic lol. Absolute nonsense.
@@jamie59685 Did I say that ? No. If you think those mill/factory owners were typically philanthropists ... as well as your Port Sunlight, Bournville village etc the vast majority were in for exploiting nimble-fingered kids, subjecting women workers to "phossy-jaw" (Google it) & all the rest. No workers' comp for them, outrageously long hours/hideous conditions too.
UK look like SA after APRTHEID
I'm sure the current people of Birmingham have nothing to do with the state of the city 😂
Population Replacement.
@@torquemaddertorquemadder2080Oh. So now you're blaming it on a couple of immigrants. There's more to economics than blaming the little guy. Perhaps you should start by blaming British governmental policy instead.
The current people of birmingham are consequence of destorying our economy, or at least that's what they tell us.
You win the mind numbing dumb ass comment of 2024 year award.
@@SilentShadow269 It’s called population replacement.
Brum really peaked during ww2, aircraft manufacturing, castle Bromwich, BSA, Britain Small arms, leading to British car and motorcycle manufacturers, like my first Car, Morris 1100, happy days, when Chelmsley Wood was still green belt.
Decades of Labour mismanagement
Was it always a Labour council?
Annoyingly simplistic. So the downturn in the 30s was caused by external factors, whereas the only possible explanation considered for postwar decline is government policy.
If ‘new industrial centres’ had sprung up in the postwar years, would those not have drawn workers and investment away from Birmingham?
I could do with hearing your explanation for how foreign energy supplies are to be secured without government action.
You failed to explain why e.g. the Labour government under Harold Wilson considered the growth of Birmingham as "threatening". Environmental objections had not been thought as important in the early 1970s. I think it is not wrong if a government cares about threats, but the error might have been that they saw a threat where actually was happiness.
Now look at it a third world shit hole
I suppose you want go back to children work 12 hours a day. Or slums with no toilets. This is crap. Exactly what you can expect from the Adam Smith Institute.
I am surprised to hear Attlee being a cause in the UK's decline.
The decline started in the 1880's and became immeasurably worse from about 1970 leading eventually to Thatcher
He was responsible for serious social/educational reform and had a good attitude to the Empire.
Bearing in mind he had power over a bankrupt nation aided and abetted by Lend Lease ; as of now I think well of him.
I lived and worked in Coventry from the 50's to 2000.
I cant see the disaster that has occurred had much to do with Attlee
The doom loop was created in 1944 with a welfare state funded by taxes on wages, goods and services
@@physiocrat7143Taxes don't fund government spending. If they did budget deficits wouldn't be possible.
@@GonzoTehGreat
MMT theory. Correct but tax is needed to prevent runaway inflation. Wrong sort of taxes have been ruinous
@@physiocrat7143 Agreed, but it's questionable if ALL post WW2 UK taxes were "ruinous". Some certainly were and it's also true that an economy can thrive with low taxes (e.g. Hong Kong), but taxation itself isn't problematic.
The problem is poor governance.
When it was created, the UK welfare state was designed as a "(helping) hand up", but over successive decades, to secure votes from an aging population, politicians have turned it into a "hand out". Meanwhile, over the same period, taxes have fallen. Clearly, taxation isn't the issue.
@GonzoTehGreat
HK thrived on the revenue from the sale of 40 year leases.
Taxation is very much the issue. If you tax windows then you will have bricked up windows. If you tax honest work and trade, you can work out what the results will be
Their saying (Labour) " the man from the ministry knows best" sums up socialist attitudes.
The jobs went to the EU and then China as cost grew business went bust and the UK deindustrialized,
Islamification + socialism
LOL yeah we're really socialist in the UK aren't we. You just can't face up to what 45 years of neoliberalism have done. You're also ignoring that the ASI are open borders
@@Phil-n7c Not sure what the Asynchronous Serial Interface has to do with open borders, but it does help communication!
Clueless comment, one which will continue the decline of the UK
Love the frank admission early on that coal was crucial in the wealth of industry in the UK... so we can reopen the pits now then? Wonderful 👍
yeah, in the 1700s it was, not so much nowadays.
This report was an excellent overview and analysis of UK industrial policies over the decades. Thankfully you have moved past the Thatcher bashing explanations to hit upon mure depressing issues like govrernment intervention and a belief that the government knows whats best. Atllee and Wilson were besotted with state intervention which ultimately meant endless taxpayer support for uneconomic behemoths. Look at how the NHS contines as a failing enterprise to this day. It is a bottomless pit. Well done!
Brilliant. Birmingham was allowed to 'develop' aaccording to the 'schedule of history' - roughly 'I have seen the future and it works'. This tyoe of prophecy is still with us - so-called 'Climate Change' is its latest manifestation. Birmingham demolished its centre, and surrounded it with ring roads, thus ensuring a complete separation of city and suburb, with dire social consequences.
The Rootes Group of car makers was destroyed by government intervention when it was forced to move to Linwood, Scotland. The local labour force had no experience of car production, and went on semi-permanent strike, despite wages being nearly twice the local level. Together with a strike in its Acton factory, Rootes failed shortly afterward.
As with today's governments, anything other than the real problems facing people were considered, whilst dream state after dream state took up the time and tax money which should have been spent elsewhere.
It seems that the ASI would champion the idea of mass migration leading to places suffering more congestion, shortage of public services, overcrowding etc while other areas end up as dilapidated ghost towns. Isn't a simple solution provide incentives to redistribute opportunities around the country? Also people get attached to their local area.
I moved away from my local area to London for opportunities, but it meant severing ties to family, friends and areas I knew and loved. In time I got to know others in the area but London is full of people feeling lonely and isolated as they have moved there and it is relatively hard to get to know people there compared to other places.
Britain was booming because of India until 1947 on the expense of looting wealth from India and getting free cotton from it and exporting readymade garments from Britain factories from Manchester and Birmingham after India became free British economy collapsed .
It was called trade . Birmingham was booming until interest rates hit 15% in the 1980s .Also tea planted by Britain in Ceylon ,a India ,Kenya and Malawi.
What wealth was looted, exactly?
Half of India was still Princely States when we left - it was India v2 that freely looted them, wasn't it?
Sir, do not redeem
Do not redeem saar
Ahh, don’t you just love government. They make everything better.
ment as in mental, govern as in control. Working people don't notice the insideousness of mind control.
@@frankraw9991 What about dicktatorships?..
🇬🇧 👍🏽 November 2024
What a fantastic essay!
really interesting and informative video. as someone who has lived through many of the changes to birmingham, coventry and liecester over many it explains mush of the hidden background to my experiences, some political bias comes through though.
The British have always loved asking gov to intervene in anything and everything, then moan when they mess it up...
This should be seen by every incoming government- UK has been paralysed for decades- we ended up making poor quality good by low skilled labour- now its bankers barbers and baristas- the government strategy should be cheap energy, skills training ( tax breaks for training - not useless degrees) bulldozer old brown field site, like touch regulation on these sites- and high quality medium rise housing for people and their families- then let the market evolve
You forgot to mention getting rid of punishing taxes.
Let's build anything anywhere without any Red tape! No labour rights, no tax! Let capitalism rip..
Have you guys ever read Adam Smith?
Well said 👍
Honestly, although its issues, based on numbeo quality of life index, Birmingham is still better than London and a bit more than Manchester.
And now its a shining example of the future of this country. Absolutely nothing
It should have been left to grow organically, and not have ideological restraints put on it. Ideology tends to be illogical. I remember in the late 60's and into the 70's, there seemed to be never ending strikes and one wonders if the strikes and joining the EC in 1972, was a two pincer attack on the country.
Yes, because leaving the EU is turning out to be such a great success for the UK...
once that london gets all it needs and then all it doesn't need will the government look to other places, but to just think about improving those areas before heading to london again for another railway.
I’m sure the hoards of women who bankrupted the council fighting for money they weren’t really entitled to really helped the city…..
Ya dry twat!
And who says that they weren't entitled to it? Did the Equal Pay Act of 1970 pass you by?
@ They were being paid equally for the work they were doing. Working in a servery and dishing up food doesn’t equate to the filthy job bin men and WOMEN do. They are paid more because of the nature of the work.
@@manmaje3596 The only problem is this: why did Birmingham Council lose employment tribunal cases time after time? Could you answer that?
@ No and I don’t care either.
Was constraining Birmingham's growth a Labour Party manifesto pledge?
The government should be a fair-play regulator, not an intervenor in the market. This is what happened during the Victorian era, when Britain excelled in industrialisation. Hopefully, people will vote to someone who comes up with more right aligned economic policies over the left socialist ideologies.
ugh, not another red tape and regulations are why our industry died.
As the video points out, things were going wrong in the late 19th century.
There were two factors - the growing strength of trade unions, which almost always had a luddite attitude to new machinery and technology. Secondly, the state education system spent more and more money teaching useless knowledge rather than the know-how that a modern economy needs.
Working class people were not getting their fair share of the cake and were seduced by socialism. It started with the Inclosures of the 18th century and the Dark Satanic Mills, the Peterloo massacre, Chartist, etc.
The trade unions were what ensured the wealth workers created was actually spread around the community more. You guys know very well neoliberalism is coming to an end and you just can't accept it
Yup. A litany of government and bureaucratic failure.
Adam Smith Institute has an "opaque corporate structure" & is coy about its funding sources - Koch Brothers ? US Hedge Fund titans ? The day they level with us is the day we can start taking them seriously
I always wonder whos got them. I used to religiously read ASI articles in the 2000s as a student & just afterwards. They were straightforward & libertarian back then. Suddenly in the mid 2010s they re-aligned themselves as neo-liberal (because that ideology has been such a roaring success!) & got progressively more insufferable.
Bit like the Sierra Club being anti mass immigration until the mid 90s, at which point, with donor pressures, it reversed its position (and lost whatever integrity it had)
How are you going to 'secure your minerals from abroad'
Emphasis on invested in now we only invest in self destruction.