How Britain Became as Poor as Mississippi - The AtlanticA case study in self-sabotage" data-next-head=""/>A case study in self-sabotage" data-next-head=""/>A case study in self-sabotage" data-next-head=""/>
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Who broke Britain? Someone—or something—must have. The past 18 years, enough time for a whole lost generation to be born and brought up, have yielded nothing but stagnation and mass disillusionment. In 2007, before the global financial crisis, Britain was at its postimperial zenith. Median household income had just surpassed that of Germany. A pound was worth more than $2, and London was arguably displacing New York as the center of international banking.<br>Explore the July 2026 Issue<br>Check out more from this issue and find your next story to read.
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But since then, Britain has been left behind. The country’s output per person is now only just above that of Mississippi, America’s poorest state—and that slight lead is only achieved thanks to London. Outside the capital, in places where tourists do not visit, living standards fall well below Mississippi’s. Brits visiting the United States find that their currency has depreciated to the point where the pound today buys only about $1.35. British wages have lagged well behind those in the U.S., and also those in Germany, France, the Netherlands, Denmark; once you account for inflation, they’ve barely grown at all. Within the next decade, the typical Pole will have a standard of living equal to the typical Brit, if current trends continue.<br>Douglas Carswell: Is Mississippi really as poor as Britain?<br>One generation ago, Britain was a major global power; today, it is a middling one, gripped by sclerosis. Taxation is at the highest level since World War II, yet public services have deteriorated. The National Health Service, the celebrated pillar of the British cradle-to-grave welfare state, has a backlog of 6 million patients—almost a tenth of the population—waiting for treatment. The health service now has to spend more money settling maternity-malpractice claims than it does on actually providing maternity care. Many Brits can neither obtain an appointment with a publicly funded dentist nor afford a private one; in a 2023 survey, one in 10 reported doing DIY dental work, in extreme cases extracting their own teeth or gluing broken crowns back together.<br>Incomes can be shockingly low: Junior doctors recently went on strike for the 15th time in three years over their salaries, which start at just £38,800; the median salary for British civil servants is £35,680. In April, amid the Iran conflict, the Daily Mail pounced on Prime Minister Keir Starmer for vacationing in Valencia, Spain, at what the tabloid described as a luxury hotel, costing £200 a night.<br>Some in Britain blame rotten luck—the 2008 financial crash, the coronavirus pandemic, an energy crisis after Russia invaded Ukraine. But other countries endured these challenges too. What differentiated Britain was its self-sabotaging responses to these and other problems. Brexit is the most famous example, but hardly the only one. Bad choices, beginning just after the financial crisis, begot worse ones. As public disillusionment has grown, politicians have been rotated swiftly in and out of power, abruptly terminating whatever policies they had started. Six different prime ministers have governed since the 2010 general election. They do not seem to be getting more talented over time. Less than two years after Starmer’s Labour Party took power, his net approval rating has plunged to minus 42 points. He is widely expected to resign this year, and may have done so by the time you read this.<br>The country’s downward slide has been consistent in one respect: As Britain has become more and more aware of its diminishment, it has retreated ever more fully into a defensive crouch. Politics have become zero-sum, descending into fights over who has robbed whom. Suspicion has fallen, above all, on immigrants, whom both major parties have turned against. There is still an enduring strain of British exceptionalism, quieter and more understated than the American version, which suggests that by retreating inward, Britain can make itself great again. Astonishingly, or perhaps predictably, it is growing stronger as the country’s problems get worse.<br>In fairness, the 2008 financial crisis hit Britain especially hard. In the 1990s, both the Tories and Tony Blair’s “New Labour” Party made the same bet: Britain was to be a postindustrial, services-based economy, anchored in finance. Tax receipts from a booming London would be redistributed to lagging regions in the old industrial heartland, helping to renew them. Then came 2008, and London’s financial industry cratered.<br>But the government’s actions during and after the crisis compounded the damage. Rather than increase spending to revive depressed demand, as modern Keynesians would counsel, the government, then led by Conservative Prime Minister David...